Mexican beer producer Grupo Modelo plans to invest almost 14 billion pesos (754 million dollars) to build a bottling and processing plant in the municipality of Apan in Hidalgo, an official with knowledge of the agreement told Reuters on Monday.

Grupo Modelo, which is owned by the world's largest brewer, Anheuser-Busch InBev, produces and exports Corona, Modelo and Pacífico beers, among others.

The new plant will initially have an annual capacity of 12 million hectoliters that will eventually increase to twice, the official said.