Specialty label and packaging company CCL Industries is planning to invest around $35m in its facility in Guanajuato, Mexico over the next three years.
The investment will see the addition of new equipment to manufacture plastic laminate tubes for global home and personal care customers in Mexico.
A new CCL Design plant is coming up at the site to cater to the needs of major global automotive OEM and Tier 1 customers in the country.
Avery, a division of CCL Industries, will also build a low-cost binder manufacturing plant that will export its entire output to the US and Canada.
Additionally, a new coating operation will be established at the Guanajuato site to supply specialty, proprietary materials across CCL Label and Avery locations in North American Free Trade Agreement (NAFTA) countries.
CCL plans to transfer Avery manufacturing and distribution operations in Meridian, Mississippi to its existing facility in Tijuana, Mexico by mid-2016.
The company intends to cut Avery's annual costs by $8m from 2018, once the operations are shifted, and also sell Avery's manufacturing units in the US.
CCL Industries president and CEO Geoffrey T. Martin said: "Our existing operations in Mexico are among the best in the company. This new program is designed to support global customers operating across the NAFTA region while rewarding the outstanding performance of our people in Mexico with this significant investment.
"Once the expansion completes, Mexico will become our second largest country in the world after the United States in terms of infrastructure and employees."
In July this year, the company partnered with Turkey-based in-mould-labels (IML) producer Korsini, to set up a manufacturing facility for IML in Memphis, Tennessee, in the US.
CCL Industries employs nearly 11,100 people and operates 105 production facilities in 29 countries.