Mexico’s Planeación Mantenimiento y Proyectos S.A. de C.V (PMP Grupo), postponed its plan to build three mini-mills in Mexico to instead commence projects with its Indian partner, Preet Machines.
Porfirio Gonzalez, director of PMP Grupo, said the project aimed to build small mills close to consumption centers to reduce costs in products such as rebar and wire rod, a model that operates successfully in countries like India.
“Right now many factorsare hurting us,” Gonzalez said. “First, a very tough tax reform, which everyone is trying to learn, and secondly a devaluation of the currency, which many do not want to take as such, but if we analyze it, we are facing a big devaluation.”