Nestle Waters Espana, a subsidiary of the giant nestle group, is to pour €14m (US$14.9m) into building a mineral water bottling plant in the Herrera del Duque, Badajoz province in Spain, the  country's press reported yesterday.

The plant will open in the summer of 2004 after the regional Government of Extremadura and Nestle Waters Espana signed an agreement for the construction project.

The plan is that it will bottle the Nestle Aquarel brand to sell in central and southern Spain, and in Portugal. Output is expected to be 100 million litres of mineral water annually.

Another €10m has been set aside for further investment if sales are a success.