Amazon Invests $100M To Fuel Mexico Expansion

Amazon Invests $100M To Fuel Mexico Expansion

Amazon Inc (Nasdaq: AMZN) has invested $100 million in Mexico to improve the logistical infrastructure, Reuters reported on Thursday.

The company's strategic expansion is centered around customer satisfaction by significantly improving delivery speeds in the region.

What Happened: The $100 million logistics development initiative will fund two new fulfillment centers, one in Monterrey and another in Guadalajara, as well as a support building outside Mexico City.

The e-tailer also added 12 new stations to its delivery network, increasing the total to 27 centers across the country.

"The construction of a solid infrastructure network allows the company to stay closer than ever to clients, and thanks to that, it’s possible to offer fast deliveries," said Amazon.

Collectively, the new units measure 69,000 square meters and could create up to 1,500 jobs, directly and indirectly.

Why Does It Matter: After entering the Mexican market in 2015, Amazon’s operations have expanded to five fulfillment centers, two support buildings, and two classification centers — Reuters.

Last week, Amazon disclosed plans to launch two new fulfillment centers in Kansas in 2021 and create more than 1,000 new full-time jobs. 

Price Action: AMZN shares closed 1% lower to $3,184.94 on Wednesday.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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