Holcim Mexico considers the housing construction crisis in Mexico will take another two years to overcome, with negative effects in the construction industry in general and the cement industry in particular, said the company director in an interview with El Financiero.
“The problem with the housing sector will take some time to be resolved, around two years, because some companies have to sort out their difficulties,” said Eduardo Kretschmer, general director of Holcim México, previously Holcim Apasco, in the interview. “When it is resolved, it will positively impact construction.”
Companies who were having trouble needed to analyze their options and business strategies to overcome their problems, noted Kretschmer. The housing construction companies that are having difficulties include Urbi, Corporación Geo, Consorcio Ara and Homex, according to the article.
Another factor in the deceleration in the construction industry cited by Kretschmer has been the lower investments in the last few months by businesses and the public sector in construction. Kretschmer estimates that by the end of the year the construction industry will begin to grow and the cement industry will see a 2 percent increase in demand for cement.
Kretschmer also announced that Holcim Mexico will invest MX$ 500 million in upgrading its production capacity.