U.S. medical-supplies producer Becton Dickinson Co. (BDX) is investing $200 million in a new manufacturing plant in central Mexico as well as expansion at an existing plant, Mexico's president said Monday.

The new plant will be built in San Luis Potosi, President Felipe Calderon said at an event. The plant being upgraded just north of Mexico City will become Becton Dickinson's largest outside the U.S.

Calderon said the investments will directly create 1,000 jobs.

"Today more than ever, investment is fundamental for our economy to recover and to create the jobs that Mexicans need," Calderon said.

He said Mexico is the No. 3 provider of health products to the U.S., behind Ireland and Germany. Mexico's health-industry exports grew fivefold in the past 10 years to nearly $4 billion in 2008.

Domestic demand for health products will also likely rise in coming years as Mexico's young population ages and the government works to increase coverage of the public health service, Calderon added.

-By Paul Kiernan, Dow Jones Newswires; (5255)5001-5726, paul.kiernan@dowjones.com