1、Dear Reader,Global Business Reports(GBR)is delighted to present the 2023 edition of its annual guide to Mexicos chemical and petrochemical industries.For this report,we interviewed business leaders and industry representatives throughout the complete chemical value chain,including associations,pro-d
2、ucers,distributors,logistics providers,and service companies.The report covers the various sub-segments of the chemical industry,ranging from crop protection to specialty chemicals.Over the first ten months of 2022,Mexico exported 20%more products to the United States than it did during the same per
3、iod the year before.The global trend towards regionalization is lifting the entire Mexican indus-trial sector,but for the chemical industry in particular,2022 was a year of nearshoring-driven growth.However,the persistent shortage of raw materials that constrained the in-dustry over the past several
4、 years remains a challenge.Continuing logis-tics challenges and burdensome government regulation exacerbated the feedstock insufficiencies.The proposed electricity reform,which will raise energy costs,and reform to the General Health Law,which will ban vital crop protection products,remain an ongoin
5、g threat.The trend observed across the industry has been a focus on ensuring adaptability and flexibility through strengthened processes.Companies invested in the incorporation of digital technologies,the regionalization and diversification of supply chains,and investment in improved energy efficien
6、cy and resource management.2022 was a year of transition,dur-ing which companies all along the industry value chain implemented new systems in response to the difficult lessons of the previous two years.As a result,Mexicos chemical sector in 2023 is technologically advanced and significantly more su
7、stainable.After the intensive investment in operational agility implemented over the past year,the Mexican chemical industry is prepared to jump upon new investment that will continue to flow into Mex-ico as nearshoring gains momentum.This report is the culmination of over 90 interviews conducted wi
8、th key decision-makers,providing a holistic view of the opportunities and chal-lenges shaping the industry today in Mexico Chemicals 2023.We thank all our interviewees who have taken the time to provide their valu-able insights.To all our readers,we encourage your feedback and welcome interest in be
9、ing interviewed for future reports.Alfonso TejerinaDirector and General ManagerGlobal business Reports(GBR)NETHERLANDS|BRAZIL|CHINA|BELGIUM|UNITED ARAB EMIRATES|USA|CHILE SWITZERLAND|MEXICO|GERMANY|INDONESIA|THAILAND|SINGAPORE|VIETNAM PERU|MALAYSIA|SOUTH KOREA|HONG KONG|INDIA|JAPAN|SOUTH AFRICALesch
10、aco Mexicana Competent and reliable logistic solutions.Since 1998.Forwarding is our passion.On the occasion of our 25th anniversary we would like to thank our customers and business partners for the successful and trustful cooperation and your loyalty for many years!We will be happy to continue to s
11、upport you as a reliable logistics service provider and look forward to a joint future with you!Forwarding is our passion.Since 1879.OceanGulfofMexicoGulf of CaliforniaUNITED STATESGUATEMALABELIZEHONDURASEL SALVADORMexicaliHermosilloChihuahuaLa PazCuliacnDurangoTepicGuadalajaraColimaMonterreySaltill
12、oVictoriaSan LuisPotosZacatecasAguascalientesCiudadMridaGuanajuatoMoreliaTolucaCuernavacaQuertaroPachucaPueblaJalapaTlaxcalaCampecheChetumalVillahermosaTuxtlaGutierrezOaxacaChilpancingoMexico City00300 MilesNThis research has been conducted by Mariolga Guyon,Maeve Flaherty,Esteban Camarena,Carola Gm
13、ez and Natalia Preciado.Interviews for the report were conducted between September 2022 and January 2023.Edited by Mungo Smith Graphic design by zgr Ergney and Kaori Asato.Cover design by Gonzalo da CunhaA Global Business Reports PublicationFor updated industry news from our on-the-ground teams arou
14、nd the world,please visit our website ,where you can suscribe to our newsletters,and follow us on Twitter(Gbreports)and Linkedin.MEXICO CHEMICALS 2023GBR SERIESGlobal Business ReportsInternational BoundaryState BoundaryState CapitalNational CapitalMexicoIntroductionAgrochemicalsSpecialty chemicalsAn
15、 overview of the main challenges for Mexicos chemical industry,and the opportunities of nearshoring.An examination of recent innovations in crop science technologies,and the risks and challenges presented by burdensome regulation and hostile legislation.An overview of niches in the specialty chemica
16、ls segment that experienced excellent growth in 2022.8-1332-4548-61Mexico Chemicals 2023Introduction to Mexico8Introduction to Mexico12Interview with ANIQ13Interview with EvonikSustainability16Sustainability18Interview with Ecolab19Interview with SNF Floerger20Interviews with Solenis and with Polaqu
17、imia21Interviews with UPL and with AsfertglobalPetrochemicals24Petrochemicals26Interview with Braskem Idesa27Interview with Plastiglas28Interviews with Grupo Petroqumico Beta and with Polioles29Interviews with Castrol,Lub-Line and with PolylubexAgrochemicals32Agrochemicals34Interview with UMFFAAC35I
18、nterview with PROCCYT36Interview with Grupo Versa37Interview with Valent de Mxico38Interview with Mezfer Crown39Agrochemicals General Health Law41Interview with Acadian Plant Health42Interviews with FMC and with AMVAC43Interview with Syngenta44Interviews with Bayer CropScience and with Viakem45Indus
19、try Insights:Innovative approaches to crop protectionSpecialty Chemicals48Specialty Chemicals50Interview with Charlotte Chemical51Interview with Sekisui Specialty Chemicals52Interview with Croda53Interview with Lanxess54Innovative Technologies56Interviews with Covestro and with IMCD Mexico57Intervie
20、ws with rgano Sntesis and with DVA58Industry Insights:Specialty companies look ahead59Flavors and Fragrances60Interview with ANFPA61Interviews with Robertet de Mxico,AZ Fine Chemicals and with FrallierPaints and Coatings64Paints and Coatings65Interview with ANAFAPYT66Interview with Reacciones Qumica
21、s67Interview with INTERADI68Colorful and Sustainable69Interview with KemikalsDistribution74Chemical Distributors76Interview with Pochteca77Interview with Qumica Delta78Interview with First Quality Chemicals79Interview with Nexeo Plastics80New Technology Trends81Interview with Caldic82Interview with
22、Trade Chemicals and Products83Interviews with Quimisor,Possehl and with Kigo ChemicalsLogistics and Services86Logistics88Interview with Leschaco89Interview with Euromex Logstica90Interviews with ED Forwarding and with Bollor91Interview with FR Terminales92Interviews with Logstica Integral and with K
23、atoen Natie93Services94Interviews with Linde and with Air Liquide95Interviews with Topsoe and with nestas96Interviews with IPP,LCEC and with Grupo Stin97Industry insights:Services98Industry Insights:The chemical sector in the digital age100 Company Directory“We need the infrastructure and regulatory
24、 conditions to exploit the shift to regionalization and welcome regional trade partners to Mexico.Important industries,such as chip producers and automotive companies,require a viable chemical industry.”Miguel Benedetto,Managing Director,ANIQINTRODUCTIONGBR SERIES MEXICO CHEMICALS 2023Image courtesy
25、 of Rafael Guajardo from PexelsDespite a challenging macroeconomic landscape,in 2022 the Mexican chemical and petrochemical industries not only grew but positioned themselves to take advantage of a future defined by reshoring and nearshoring.Macroeco-nomic shocks including the Russia/Ukraine War,US-
26、China political instability,and the combination of high inflation and dramatic interest rate rises compounded pre-existing logistics and supply chain challenges.For Mexican chemi-cal and petrochemical companies,however,these chal-lenges provided an opportunity to rethink how they do business.The vis
27、ible trend among Mexican chemical and petrochemical companies in 2022 was an investment in operational efficiency and flexibility:diversifying supply chains,digitalizing processes,and prioritizing sustainabil-ity at all points along the value chain.Behind this success is the strong position of the M
28、exi-can economy exiting the pandemic.At the end of 2022,the index of global real economic activity recorded a growth rate of 4.7%,and,according to the IMFs World Economic Output,Mexicos GDP grew 2.1%in real terms.Many com-panies experienced net gains throughout 2020 and 2021 due to the increase of d
29、emand in individual-use plastics and personal care products that have continued to benefit from protracted demand.While this upward trend indicates relative progress and the overall resiliency of the Mexican economy,a closer analysis of the economic indicators contributing to the growth reveals a co
30、mplex situation.Upsurges have varied across economic sectors.For instance,Mexicos agricul-tural sector and industrial activities,which account for a significant portion of the GDP,have both grown through-out 2022.In contrast,the services and construction sec-tors have yet to recover to pre-pandemic
31、levels.According to Miguel Benedetto,director general of the Chemical Association of Mexico(ANIQ),the chemical and petrochemical sector has seen a growth in revenues,but this is not reflected in the production output across the entire sector.While higher prices may translate to higher revenues,produ
32、ction costs,inflation and the threat of re-cession in 2023 have limited Mexicos production capacity and impeded the industry from operating at its full poten-tial.In October 2022,data from INEGI showed the annual inflation rate stood at 8.4%,while data from ANIQ indicat-ed the price of crude,which n
33、early doubled between 2020 and 2021 according to primary benchmarks,is projected to remain high in 2023.The insufficient supply of basic petrochemicals such as ethane,propylene and ethylene oxide from PEMEX,the countrys main supplier of chemical raw materials,remains an issue.“The government has foc
34、used on the refining and production of petroleum at the expense of producing ba-sic petrochemicals,”explained Benedetto.Mexico imported over 7 million tons(t)of petrochemi-cals in 2021,which still falls short of the national demand.According to Dr.Adrin Duhalt,research scholar at Colum-bia Universit
35、ys Center on Global Energy Policy,to stimu-late the growth of the chemical and petrochemical sector,PEMEX must invest in critical infrastructure,and private companies must be allowed to fully participate in the downstream sector of the economy.While PEMEX has been slow to respond to market de-mands,
36、there have been developments towards modern-izing the industry as reflected by plans by Braskem Idesa to build an ethane import terminal in Laguna de Pajari-tos in Coatzacoalcos,Veracruz in partnership with PEMEX and other stakeholders.Braskem Idesa has indicated this joint venture between PEMEX,the
37、 Interoceanic Corridor of the Isthmus of Tehuantepec(CIIT)and the Port Admin-istration of Coatzacoalcos is an investment worth US$400 million and will be operational in the second half of 2024.“This is an important development for the infrastructure needs of the petrochemical sector because it has t
38、he po-tential to provide ethane to various industries down the supply chain and stimulate economic growth in the re-gion,”stated Duhalt.Work on that terminal is continuing apace.As of Febru-ary 2023,Stefan Lepecki,CEO of Braskem Idesa,stated:“30%of the EPC is completed.We have already purchased the
39、required long-lead items and completed 80%of the en-gineering.Construction has started,currently focused on the foundations.”In June of 2022,Advario,a subsidiary of Oiltanking,pur-chased a 50%stake in the project,leading to the establish-ment of a joint-venture company called TQPM.Image courtesy of
40、Victor Armas from PexelsEven once the terminal is operational,gaps will remain in the supply chain and many chemical and petrochemical companies will continue to face feedstock shortfalls.This is a missed opportunity for the country:Mexicos indus-trial sector depends on chemical imports at a much hi
41、gher rate,28%of the total demand,than comparative industrial economies,according to a report by McKinsey&Co.Despite these challenges,Mexico demonstrates tre-mendous potential given its geographical location,human capital,and market growth opportunities.McKinsey&Co.estimates that sustained investment
42、 in the chemical industry could add 4%growth to the countrys GDP and double chemical production output by 2035.Among the many steps required to facilitate this growth is a greater focus on innovation.In the past decade,Mexico has lagged behind other countries in chemicals patent applica-tions.Compar
43、ed to Brazil,for example,the country is far be-hind,submitting 15%of the number of patent submissions.However,Mexico has a talented,young,and well-educated workforce that is primed and ready to drive innovation and advance the field with the support of intentional investment.This forward momentum is
44、 particularly visible in digi-talization.Over 2022,many major Mexican companies across the value chain introduced new digital technologies including CRMs,sales platforms,digitalization of internal processes,and,particularly in the agricultural sector,new technologies for data collection.The possibil
45、ities that arti-ficial intelligence,cloud computing,and the digitalization of systems offer to the chemical industry are near limitless.Digitalization will be vital for the industry to achieve its sustainability goals,explained Lepecki:“To counter climate change,digitalization and automation are ess
46、ential for us.Carbon neutrality is our target,and we must use digital infrastructure to reduce our emissions.”Multiple companies we interviewed for this report an-nounced STEM partnerships with local universities in 2022,demonstrating the role the chemical industry can play in facilitating and suppo
47、rting the digital prowess of Mexicos population through educational collaboration.The opportunities for increased efficiencies provided by new technologies will contribute to continued growth within the industry and create technological spillover ef-fect benefitting the entire Mexican economy.Nearsh
48、oring:A shift from globalization to regionalizationIn response to supply chain challenges and global infla-tion,the chemical industry has begun to pivot towards sourcing raw materials from regional partners,restructur-ing logistical strategies,and adopting new technologies to maximize efficiency and
49、 minimize operational costs.The regionalization of markets gained traction in 2020.Mexico is an increasingly attractive investment destination for companies seeking to regionalize,and has 13 Free Trade Agreements with 50 countries,such as the United States-Mexico-Canada Agreement(USMCA),which gives
50、the country a competitive advantage as more than 80%of its exports are destined for the US market.Global Business ReportsGBR SeriesGBR SeriesIntroduction to MexicoNearshoring in the chemical industry gains momentum9 Global Business Reports9 M E X I C O C H E M I CA L S 2 0 2 38 GBR Series8 M E X I C
51、 O C H E M I CA L S 2 0 2 3There needs to be morecollaborations between the government and the private sector.The Puerto Mexico Chemical Terminal is an example of both the government and the private sector working towards the common goal of updating the nations industrial apparatus.Adrin Duhalt,Rese
52、arch scholar at Columbia Universitys Center on Global Energy Policy,Baker InstituteMartn Toscano,President of Evonik Mexico,similarly emphasized the importance of seizing the possibilities provided by nearshoring:“Nearshoring is a significant opportunity for Mexico,but supply and regulatory issues m
53、ust be addressed to take advantage of the possibility.”The industry is burdened by excessive regulation.Dis-cussing product approvals,Jos Mara Bermdez,CEO of Viakem,explained:“One of our core challenges is legal cer-tainty in our regulatory and environmental approaches.We need to understand the rule
54、s of the game to imple-ment them,and those rules should be based on science and not ideology.”Excessive and constantly changing regulation is hostile to investment,impacting not just the chemical sector but upstream and downstream players,and particularly the energy sector.Discussing Mexicos renewab
55、le energy op-portunities,Toscano said:“International and local inves-tors need a legal framework to invest.The technology is available,and international and local players are ready to invest in these fields,but we still need a clear regulatory and political player.”Energy is an area where President
56、Andrs Manuel Lpez Obrador(AMLO)has encouraged particularly challenging regulations.His decision in 2021 to present a constitu-tional reform of the electricity sector,reversing the 2014 energy reform that allowed private investment,has the potential to be extremely burdensome to the chemical and petr
57、ochemical industry.However,the industry remains positive about the coun-trys potential.At ANIQs Annual Chemical Industry Forum in October 2022,nearshoring and the modernization of industry were the foremost topics.Benedetto highlighted the global realities that will benefit Mexico,stating:“The pande
58、mic demonstrated that globalization is unsustain-able for the continuity of the supply chain.”This is a moment of momentum for Mexicos chemical industry,with all the factors in place for transformative growth.“Nearshoring is an opportunity to reinforce the competitiveness of Mexicos industrial secto
59、r,”said Lep-ecki.“We have all the conditions in North America to con-tinue developing nearshoring.GBR SeriesGlobal Business ReportsVolume of Petrochemicals Production and ExportsSource:ANIQTonsPercentage%2012201020162017201820192020202120145,000,00020,000,0003.02.52.01.51.00.5015,000,00010,000,000-2
60、040200201620212020201820132011201520172019Production(Tons)Imports(Tons)Apparent National Consumption(Tons)Growth rate-Import18%11,148,2627,055,0675,016,378Chemicals Innovation in Mexico is Low Compared to Other CountriesSource:McKinsey&CompanyGlobal chemicals patent applications by location of inven
61、tor,201120Power PricesSource:The EconomistMexico,electricity prices,pesos per kWhChinaJapanIndiaBrazilSaudiArabiaMexicoUnitedStatesEuropeanUnion1,410Population,millions1261,39021435130332447111,633201114,avg81,1443,9571,31041756897,0439,180212,639201519,avg79,3443,5651,33290448296,21610,73690Growth,
62、%-2-102117-15-117WaterPetroleumGlassCementBiochemistryAdhesivesCoatingsAgricultureTechnology focus of chemical patent 201120Number of patents in relevant technology focus,thousands200Yearly patentapplications10020010100110GBR SeriesCould you provide a brief history of Kemikals?Kemikals was founded i
63、n 2010 to sat-isfy a growing need to distribute high-performance special additives paired with technical support and local ser-vice.Our offerings always prioritize sustainability,environmental friendli-ness and user health.What is the source of Kemikals strength in the Mexican market?The number one
64、focus of our business is our team.We consider ourselves an elite group;our customers and part-ners share that view.Over the last year,we have worked to integrate more team members with advanced degrees,ex-perience and high qualifications.Our laboratory is staffed by a technical team that can perform
65、 evaluations of viscosity,adhesion,and all the proper-ties that we know are important to the paint and dry mix mortar industry.Can you describe the impact of the recent logistics challenges on the Kemikals?With good communication,planning,and strategic partnerships,we have handled the challenging lo
66、gistics issues of the past few years.In the years sec-ond half,we have seen a greater market opening in China.Now we observe ex-cellent rates of inventory,contractions in demand,and excess supply.It is an unusual moment because the global Francisco RubioPresidentKEMIKALSEvery year,our percentage of
67、sales of sustainable products has grown,and we expect it to grow exponentially.situation has been complicated logisti-cally,but our clients have the percep-tion that everything has stabilized.The Ukraine-Russia war has been com-plicated for us.We import 90%of our products from Europe,and the conflic
68、t increased uncertainty.However,there has consistently been sufficient sup-ply.The macroeconomic signals are constantly in flux and highly contra-dictory,which has led to a challenging year for the industry.How has Kemikals positioned itself to serve the chemicals industry?Kemikals continuously expa
69、nds and complements our portfolio with high-tech,green products.Unlike our com-petitors,we have our own research laboratory,which allows us to provide our customers with advanced support and products of the highest caliber.Last year,we partnered with Nouryon to bring their environmentally-friendly s
70、urfactant products to the Mexican market.We have also started working with bio-based technologies,and our portfolio in this area is continuously growing.However,commercializing these lines is challenging because of their higher price point.What is the Mexican consumers at-titude towards sustainable
71、products?The trend to use green products with low-VOC was very active before 2020.However,the pandemic caused a regres-sion in the prioritization of sustainability and the consumers willingness to focus on environmental priorities.The con-sumer was focusing on survival.Howev-er,the situation is stab
72、ilizing,and clients are again interested in green,healthy technologies.Sometimes,the growing interest comes from external pressure because the client must comply with so-cial pressures or increased regulation.In Mexico,environmental standards do not currently drive demand,but we expect the implement
73、ation of more govern-ment regulations that will push the cus-tomer toward green products.Separate from regulation,the underlying interest and general awareness of the need for more environmentally friendly products are already in the market.Every year,our percentage of sales of sustainable products
74、has grown,and we expect it to grow exponentially.Sustainable prod-ucts have added value beyond their low environmental impacts,such as deeper color or more result per amount of prod-uct.Although the price of environmen-tally-friendly products is high,the bene-fits exceed the costs when the products
75、are evaluated comprehensively.How does Mexicos regional position benefit the chemical industry?The biggest advantage for Mexico is its geographic position next to the US.The economic integration of the North Amer-ican countries is a significant strength,and the markets are reacting positively to the
76、 trends they see in Mexico.At Kemikals,we constantly think about how to move further into the US mar-ket.We see a real opportunity in the additives and specialties segments.Our providers have approached us and asked if we will enter the US,particular-ly the southern states,and it is some-thing that
77、we are seriously considering.What are your main objectives for 2023?One of our main objectives is to posi-tion our new product lines.We will also continue to work on our value-added,sustainable product lines,which I am convinced will capture a more promi-nent market share segment in a few years.We w
78、ant to offer the best sus-tainable alternatives in Mexico be-cause these efforts align with our com-pany values and our deep commitment to the region.69 INTE RVIE WGlobal Business ReportsGBR SeriesGlobal Business Reports69 M E X I C O C H E M I CA L S 2 0 2 368 GBR Series68 M E X I C O C H E M I CA
79、L S 2 0 2 3Despite the unpredictability in Mexico resulting from the drastic changes that can occur in betweenpolitically opposite administrations,Mexico continues to be a good place to do business.Jorge David Saldaa,Chief Strategy Officer,Wyn de Mxicopaints that reduces VOCs by allowing them to add
80、 up to 40%more water instead of solvents.has observed a lesser prioritization of low-VOC products.Jimnez Landa,gen-eral director of Interadi,has observed a lesser prioritiza-tion of low-VOC products,saying:Since these molecules are more expensive,we have had problems selling them in some Latin Ameri
81、can countries because in these markets there are still many factories that want good,efficient,and cheap products,no matter how toxic they are.Part of the slower move towards sustainable paints and coatings is caused by a lack of regulatory focus in Mexico.The United States has a significantly stric
82、ter regulatory framework around the classification and labeling of paints and coatings,the Hazard Communication Standard(HCS).Image courtesy of ANAFAPYT68The EU,likewise,utilizes the European Registration,Evalu-ation,Authorization and Restriction of Chemicals(REACH)framework,strictly defining which
83、chemical inputs can be present in products sold in Europe.These are established and detailed regulations that shape the requirements for paints and coatings in major markets.On a national level,countries across the world are imple-menting stricter paints and coatings regulations,or have regulations
84、moving through the ratification process.This is leading to a much tighter regulatory environment globally.However,the intensity of some regulation has led to con-cern.Strict regulation of biocides,for example,although necessary to ensure safe usage,could potentially impede the ability of the industr
85、y to participate in the circular econ-omy by making it more challenging to recycle leftover paint.Compared to other parts of the world,many govern-ments in Latin America have limited or no laws regarding VOC use,making these products readily available to con-sumers.This is expected to change in Mexi
86、co.Silva Perez stated,“In Mexico,the government is shifting towards reg-ulating VOCs in consumer products,and we are prepared to meet these regulations.”The expectation of forthcom-ing regulation,paired with a market trend towards sus-tainability,is driving this shift even before the Mexican paints
87、and coatings industry experiences strict regulation.As an important player in Mexicos chemical industry,it is essential that the paints and coatings industry be a part of those discussions.The segment offers vital solutions,from pipe coatings that reduce water waste to products that protect the food
88、 system.Regulation that offers clarity is necessary,but it must not be unduly burdensome.This is only made more challenging by the shifting winds within the government.“We have had to adapt to the poli-cies that emanate from different administrations,”noted Saldaa.However,he explained,“Despite the u
89、npredict-ability in Mexico resulting from the drastic changes that can occur in between politically opposite administrations,Mexico continues to be a good place to do business.”Fortunately,the industry is unified around this focus.Arius Ziga Lara,former president of ANAFAPYT,stated,“ANAFAPYT represe
90、nts the interests of the industry in the face of excessive government regulation.”Indeed,ANAFA-PYT actively engages with the government through COTEN-NAREC(Technical Committee for National Standardization of Paints,Varnishes,Coatings,and Inks),which is made up of many working groups that meet with t
91、he Ministry of Economy to participate in the drafting of laws.When it comes to engaging with the government,the situation calls for all hands on deck.Increased sustainability requires companies to rethink not just their products,but their operations.Many compa-nies are also implementing sustainabili
92、ty within their pro-duction facilities to minimize environmental impacts and maximize efficiency.Reacciones Qumicas has made sus-tainability and environmentally conscious practices a bed-rock of their strategic planning.Pablo Cueva,strategic de-velopment director at Reacciones Qumicas,said:Nuevo Len
93、 suffered from water scarcity in 2022,and that made water management a key topic in the company.Also,90%of our electricity is derived from renewable energies,solar and wind.Wyn is likewise focused on sustainable operations.“In April 2022,we partnered with POWEN and inaugurated a chemical plant that
94、is completely run on solar energy in the state of Quertaro.This solar project is considered one of the largest of its kind in Mexico.”This is only one of their sustainability initiatives:In addition,we are water self-suf-ficient and are developing projects to better manage this resource.We are colla
95、borating with ANIQs ESG program to enroll in SARI(Integral Responsibility Management Sys-tem),which seeks to reduce gas emissions,improve work-ing conditions,and foster better relationships with the lo-cal communities.”ANIQs leadership is central to this sustainability drive.Miguel Benedetto explain
96、ed,“We are taking a variety of steps to improve the chemical industrys sustainability metrics.On an industry-wide level,we are promoting car-bon neutral industries.Individual businesses are working to recycle,to reduce energy use,and manage natural re-sources more efficiently.In addition to the carb
97、on mar-ket,we are promoting higher standards and participat-ing with the government to improve business conditions.Since 2018,businesses must certify their emissions and those emissions must be verified by an accredited agency like ANIQ.These sustainability concerns will only increase as the market
98、for paints and coatings shifts.For example,de-mands for powder coatings are growing due to higher profit margins resulting from product effectiveness,sus-tainable qualities,low VOC emissions,and higher transfer efficiency than liquid coating technology.With an expect-ed CAGR of 6.2%between 2021 and
99、2028,the market for powder coatings is expected to grow to US$18.95 billion by 2028,according to Fortune Business Insights.Companies continue to invest in their production capac-ity and modernize their technological systems to minimize costs and environmental impact,reflecting their confidence in th
100、e Mexican market.In August 2022,PPG announced that it would invest US$11 million to double the production capacity of its powder coatings plant in San Juan del Ro,Mexico,which is expected to be completed by mid-2023.The Mexican paints and coatings industry is poised to ben-efit from global demand fo
101、r sustainable products.Demand will only increase as the consumer recognizes that sustainable products have utility beyond their envi-ronmental metrics.“Sustainable products have added value beyond their low environmental impacts,such as deeper color or more result per amount of product,”stat-ed Rubi
102、o.“Although the price of environmentally-friendly products is high,the benefits exceed the costs when the products are evaluated comprehensively.GBR SeriesGlobal Business ReportsGBR SeriesGlobal Business Reports70 71 E D I T O RI ALE DITO RIA LGBR SeriesGlobal Business Reports70 71 M E X I C O C H E
103、 M I CA L S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 3These past few years have been good for almost all the distributors I know.The skyrocketing costs of raw materials make distributors have very profitable years.When the market is so tight,what you have,you sell.Alejandro Iniestra,Managing Direct
104、or,Kigo ChemicalDISTRIBUTIONGBR SERIES MEXICO CHEMICALS 2023Image courtesy of PochtecaImage courtesy of PochtecaCELEBRATING FIVE DECADES OF PLASTICS LEADERSHIPMexicos chemical distribution industry experienced an out-standing 2022,with skyrocketing raw materials prices provid-ing distributors with e
105、xcellent profits and sustained demand for products.Utilizing their sophisticated logistics,ample storage,and highly technical services,distribution companies flourished in a year that was challenging for the rest of the industry in vari-ous ways.The Mexican market is complex,and navigating the logis
106、tics and regulatory landscape is greatly facilitated by local partners with the relevant expertise.For major international companies,working closely with skilled distributors was the best way to increase profits in a difficult period.This strong market demand for distribution services mag-nified Mex
107、icos specific advantages in trade and location.Al-fredo Ison,executive president of Qumica Delta,explained:“Given the high volatility of prices,it is more logical to source products from the US.Free trade agreements certainly help us bring in products with low import rates,so the USMCA gives us a hu
108、ge logistical advantage.”Across the entire value chain,companies are gravitating to-wards strengthening trade with regional partners.Over the next several years,demand for chemical products in Mexico will provide continued opportunities in the country.“Mexico is a strategic provider to the US in eve
109、ry single industry that re-quires specialty solutions:food,pharma,paints and coatings,construction,etc.Mexico is also the country with the largest number of free trade agreements across the world,”said Mauri-cio Crdenas,country manager cluster Mexico at Caldic.Jen Riley-Brady,vice president internat
110、ional of M.Holland,identified specific areas of growing demand for the company,explaining:“Automotive and packaging are the areas that are evolving the quickest,much of it tied back to reshoring.We are seeing the growth in those verticals commensurate with the re-shoring activities over the past few
111、 years.”Pandemic-related market trends also contributed to the distribution industrys growth.Ison said:“There was a de-mand for paints,household and personal care products,which we were able to supply.After the pandemic,we modi-fied the portfolio again to adapt to the needs of our clients.”Francisco
112、 Rubio,CEO of Kemikals,also identified high de-mand in paints,with opportunities in new areas:“Construction paints and cement mortars are also products we want to sell,because the paint industry is starting to produce them.”Sustainable products are growing for distributors.“We will also continue to
113、work on our value-added and sustainable prod-uct lines,which I am convinced will capture a bigger segment of our market share in a few years,”continued Rubio.Distributors had to be agile in the face of logistics chal-lenges which,although bringing them greater business,were nonetheless an operationa
114、l challenge.However,the extent of supply chain disruptions in the shipping sector was regional in nature:“This year,we had a reduction in the number of ships that were serving between Mexico and the US Gulf,causing shipments to be delayed from 15 to 30 days from the time an order was placed.On the o
115、ther hand,the conflict in Europe has helped us as some ships that were operating there are now operating in the Americas,”said Ison.Logistics is central to a functioning distribution industry,and Mexicos location makes it a logistics hub for distributors.“We have a center of excellence in Mexico Cit
116、y;our Interna-tional Logistics Group,a team that focuses solely on our logis-tics issues worldwide,”explained Riley-Brady.“The logistics crisis has created a different market space in Mexico.There is more value-add and concentration in these geographies be-cause many of the arbitrage opportunities o
117、n material cost are based on the domestic US market space.”Government policies across the globe often cause price disruptions,and 2022 was no different.“China changes its export policies for certain chemicals regularly;recently,it changed its policies for agrochemicals,which changed the market in Me
118、xico and the pricing,which was a significant dis-ruption.I believe we will continue to see price disruptions,”said Javier Cortina,CEO of Possehl.Strengthening processes is only more critical as the high prices are beginning to fall.“Covid-19 harmed the supply chain,and,during the second half of the
119、year,there was a drop in demand,so we had excess inventory,”said Francisco Rubio,CEO of Kemikals.He continued:“Our strategy was focused on building strategic partnerships.We decided to prioritize long-term customers over spot sales because we wanted to protect our partnership relationship with our c
120、lients.”The price shifts have been dramatic.“In December 2022,the prices were at their lowest point for some time,”explained Javier Gonzlez,director of Grupo Quimisor,continuing:“Pric-es are now improving because the producers are reducing their production and are operating at a lower capacity.”For
121、2023,these challenges are expected to abate.Sergio Chias,general manager of First Quality Chemicals,stated:“The manufacturing companies have been able to catch up,and now previously scarce materials are available,and com-petition is returning to normal,pre-pandemic levels.There are still some cases
122、of continuing scarcity,but overall,the market is normalizing.”This is particularly the case in the specialty chemicals sec-tor,Chias noted,saying:“We are getting to a new stage in which commodities are decreasing in price and some spe-cialty chemicals are also beginning to drop in price due to incre
123、ased competition.”Cortina described the impact this has on pricing:“Rates and prices have been coming down in some areas closer to what we saw three years ago.We believe there is a move to-wards more stability in prices and rates,but the ability to plan is still a challenge.”High prices and low supp
124、ly benefit distributors,as compa-nies turn to them to fulfill their supply needs.“The shortages allowed us to capture an excellent part of the market.Now,we are helping our clients develop and utilize new products from our comprehensive and growing portfolio.It is better for us as a distribution com
125、pany for the Mexican market to be experiencing shortages than not,”said Miguel Valdivia,gen-eral manager of Trade Chemicals&Products.Consolidation remains a consistent theme in the industry.The distribution industry is made up of three groups:major companies with significant resources and large team
126、s,mid-sized companies,and extremely small and specialized compa-nies with as few as three employees.The industry is beginning to separate into two levels,big companies and very small com-panies,as consolidation continues.Larger companies primar-ily target mid-sized companies which already have signi
127、ficant assets and established organizational structures,as these are easier to incorporate,while extremely small companies require a significant degree of professionalization and capacity-build-ing to fit into the established organizations of large companies.With the high profits of the distribution
128、 segment over the past year,distribution companies have significant reserves,providing them with the resources for purchases.Many of the companies interviewed expressed interest in growing through acquisitions.Crdenas explained that both organic growth and growth via acquisitions are priorities for
129、Caldic,saying:“Any M&A activity has to be strategic,meaning we need to find companies that complement our business.We are currently looking for opportunities in Mexico,and we ex-pect 20%to 25%of our growth to come from acquisitions.”Global Business ReportsGBR SeriesGBR SeriesMexico capitalizes its s
130、pecific advantages in trade and locationChemical Distributors75 E DITO RIA LGlobal Business Reports75 M E X I C O C H E M I CA L S 2 0 2 374 GBR Series74 M E X I C O C H E M I CA L S 2 0 2 3Pochteca has a significant presence in 10 countries in Latin America.What is the role and importance of Mexico
131、 within Pochtecas regional operations?Mexico represents around 50%of our sales and its where our headquarters and corporate staff are base.What are the primary trends that you have observed within the Mexican chemical industry in 2022?In most of the more than 40 industrial seg-ments that we serve,we
132、 observe that cus-tomers and suppliers increasingly prefer to turn to distributors such as Pochteca as partners in the supply of their raw materials,chemical products and ingre-dients.Distributors reduce the total cost of ownership for customers and the cost to serve for manufacturers.Some of the va
133、lue-added services that distinguish us are specialized logistics,inventory man-agement systems,efficient small-order processing,technical support,application development,training,product packaging and blending,waste management,and other environmental solutions.Digital transformation is also a key tr
134、end.Pochteca is continuously inno-vating with new tools.Caring for the environment is a cur-rent concern.Therefore distributors like Pochteca are focused on developing en-vironmental awareness and participating in the circular economy.We are investing in personnel and infrastructure to offer What ha
135、ve been Qumica Deltas main accomplishments in 2022?Over the past few years,we have strengthened our competitive ad-vantage that is based on scale and volume.As the leading distribution company in Mexico,we move more volume than other companies,which allows us to reduce our operational costs and maxi
136、mizing efficiency.Our strategy is also based on having long-term partnerships with suppliers and clients.Qumica Delta has also fo-cused on increasing access to differ-ent markets;for example,we expand-ed our market share in the glycol and alcohol market and the combination of these has allowed us to
137、 grow more than 10%in volume this year.What are the most noticeable de-mand trends that Qumica Delta has seen throughout 2022?In the past four years Qumica Delta has increased its storage capac-ity,which allows us to be flexible and adapt to different market trends.We have a total of 40,000 cubic me
138、ters of installed capacity in port terminals.During the pandemic we had to modi-fy and adapt the portfolio of products that were being distributed,which allowed us to grow.There was a de-mand for paints,household and per-sonal care products,which we were Eugenio ManzanoAlfredo IsonExecutive Director
139、POCHTECAExecutive PresidentQUMICA DELTAWe believe that the successful chemical distributor of the future needs to be truly digital and Pochteca is investing heavily to be at the forefront of this trend.We are a leading company because we have an enormous capacity to adapt to market conditions.enviro
140、nmentally friendly solutions,waste management and introducing environ-mentally friendly and healthy products to our portfolio.Nearshoring and reshoring is reshap-ing the Mexican chemical industry.How are you taking advantage of the influx of business?Mexico offers attractive opportunities to North A
141、merican companies for their nearshoring and reshoring strategies.Our privileged geographical location close to the United States,Central and South America,availability of natural re-sources,skilled labor,and multiple free trade agreements offer a competitive and reliable manufacturing base for mul-t
142、inational and Mexican companies.Many industrial customers that are expanding their operations or building new facilities in Mexico are turning to Pochteca to guar-antee a reliable supply of the chemicals,raw materials and ingredients that will be used in their plants.Pochteca has 15 quality and appl
143、ica-tion laboratories in Mexico alone.What is your approach to innovation?Our labs add value to our customers and suppliers in two key areas:optimization and innovation.Our application labs in food,oil and gas,mining,coatings and household and personal care work with our upstream and downstream part
144、ners in the supply chain to make applications of current products more efficient and able to supply.After the pandemic,we modified the portafolio again to adapt to the needs of our clients.With this flexibility,we have been able to con-tinue to maintain our growth path.How have free trade agreements
145、 and the diversification of markets impacted Qumica Delta?According to the ANIQ,the produc-tion of petrochemicals in Mexico has decreased from 10.7 million t/y in 2012 to 4.1 million t/y in 2021.This has forced companies to import supplies from other countries.The fact that Mexico is adjacent to the
146、 US helps us maintain a supply of products from that country,especially petrochemi-cals,and given the volatility of prices,it is more logical to source products from the US.Free trade agreements certainly help us bring in products with low import rates,so the USMCA gives us a huge logistical advanta
147、ge.What are challenges that Qumica Delta faces in maximizing the ser-vices and supply chain?The first challenge we have seen are logistical issues.This year we had a reduction in the number of ships that were serving between Mexico and the US Gulf,causing shipments to be delayed from 15 to 30 days f
148、rom the time an order was placed.On the also to test new products that can substi-tute current ones and lower costs,reduce carbon footprint or contribute to health and safety.We optimize formulations,extend product shelf life,improve ap-pearance or texture and help our clients comply with new legisl
149、ation.How have you continued digitalizing over the past year and what do you see as the future of technology in the distribution sector?Pochteca is transforming its digital eco-system optimizing current operations and innovating in the way we interact with our stakeholders.Artificial Intel-ligence,b
150、ig data analytics,cloud based systems and integrated software appli-cations that retrieve information from the same data lakes in an efficient way are key in order to optimize end to end processes and improve decision making.We believe that the successful chemical distributor of the future needs to
151、be truly digital and Pochteca is investing heavily to be at the forefront of this trend.Pochteca was recently recognized for best practices in Comprehensive Waste Management.Could you elaborate on your approach to sustainability?ANIQ recognizes companies that comply in an outstanding way with the ex
152、ecu-tion of the institutional SARI(Sistema de Administracin de Responsabilidad Integral)program with awards to Best Practices in Responsible Care/Respon-sible Distribution.These are also closely related to the new sustainable develop-ment goals promoted by the United Na-tions,in addition to other in
153、itiatives such as the circular economy.In 2022 we had the honor of winning the recognition of for comprehensive waste management due to our results in the Sustainable Solvent Recovery Sys-tem which focuses on the recovery and recycling of dirty solvents generated by industries that can be used again
154、 in the same or other production processes.In addition to the solvent recovery business unit,Pochtecas environmen-tal solutions division offers customers comprehensive waste management,zero-waste-to landfill and coprocessing programs.We believe that as a chemical distribu-tor we can contribute to th
155、e reduction of the environmental impact of the chemical value chain with programs like these.other hand,the conflict in Europe has helped us as some ships that were op-erating there are now operating in the Americas.The second challenge is the supply of raw materials.These conditions have started to
156、 stabilize,but we had to adapt to those conditions.What have been the repercussions of high inflation and an increase of petroleum prices?As a distributor,we are forced to pass on costs to our customers when the price of oil rises.However,in October 2022,the price of oil started to stabi-lize,which
157、means that the price of other products also started to decrease.For example,the price of aromatics,which normally ranges between US$800 and US$900 a tonne,reached US$2,100 in July 2022,but is now returning to nor-mal prices.Some players are lowering their prices for consumers,while oth-ers are keepi
158、ng them high,which un-fortunately fuels inflation.High inflation rates will affect the entire value chain because companies may delay investment in new produc-tion capacity.This may lead to a situ-ation where demand outstrips avail-able supply,and we expect this to happen in the coming years.What ar
159、e Qumica Deltas main ob-jectives for 2023?Qumica Delta plans to consolidate its leadership as a distribution com-pany in Mexico through its strategic alliances and competitive advantages.We established a subsidiary company called Ion Specialties to sell specialty chemicals and fill a market gap that
160、 we had identified.We also expanded our total storage capacity in Teoloyu-can by 15%.This expansion will be for base oils and glycols with a clean room to serve the USP market in cen-tral Mexico.Internally,we are upgrading our CRM systems to better serve our cli-ents and improve the efficiency of ou
161、r services.We are a leading compa-ny because we have an enormous ca-pacity to adapt to market conditions and we have built strategic alliances based on mutual trust,product avail-ability,fair prices and the quality of our services.76 77 I N T E R V I EWINTE RVIE WGBR SeriesGlobal Business ReportsGBR
162、 SeriesGlobal Business ReportsGBR SeriesGlobal Business Reports76 77 M E X I C O C H E M I CA L S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 3How does First Quality Chemicals serve the Mexican chemical market?First Quality Chemicals is celebrat-ing its 25th anniversary this year as a leading specialt
163、y chemicals distribu-tor.We are a Mexican company that imports materials from Asia,Europe and the US.Regarding infrastructure,we have two warehouses in the Mexi-co City area and another in Monterrey,and we use these as bases to supply the national chemical industry.95%of our market is in Mexico,and
164、we also export to Central America,Brazil,and sometimes to the US.Our main mar-kets are paints,coatings,adhesives,resins,plastics,polyurethane,and personal care products.Can you describe the culture at First Quality Chemicals?In 2019,we won first place in Mexico as a Great Place to Work out of com-pa
165、nies with between 50 and 100 em-ployees.First Quality Chemicals fo-cuses on creating leaders out of our team members.We provide signifi-cant training and workforce develop-ment,with weekly training sessions.These sessions are not only on the technical side of our employees jobs but also cover topics
166、 such as leader-Sergio ChiasManaging DirectorFIRST QUALITY CHEMICALSIf you provide your customers with innovative materials that offer better performance,lower costs,and enable them to develop new materials and markets,you will grow regardless of stagnation in the market.ship,strategy,marketing,inno
167、vation,creativity,sales,positive psychology,personal development and emotional intelligence.Recognition is essential in creating this positive workplace environment,and we incorporate ac-knowledgment and praise into our daily operations as motivation of our team is extremely important.We aim to empo
168、wer our people to become decision-makers.How has First Quality Chemicals per-formed in 2022,and what do you ex-pect for 2023?Our revenue for 2022 will be close to US$45 million.In terms of the distri-bution of specialty chemicals,that is a substantial figure as these are ad-ditives,not commodities.W
169、e are one of the largest distributors of specialty chemicals in Mexico,with principals including Evonik,Lanxess,Covestro,Songwon,AkzoNobel,Shamrock Technologies,Sukano,Borregaard,Kum Yang and other major players.In 2021 our revenues grew by 33%,and we expect 15%growth in 2022.There is a recession pr
170、edicted for 2023,which we expect to impact Mexico.However,if you provide your customers with innovative materials that offer better performance,lower their costs,and enable them to de-velop new materials and enter new markets,you will grow regardless of stagnation in the market.Have supply chain dis
171、ruptions been an area of opportunity for you?The supply chain disruptions we ex-perienced,particularly in 2021 and at the beginning of 2022,have abated.Demand in Mexico and the US has mildly decreased,and many com-panies have large stockpiles.The manufacturing companies have been able to catch up,an
172、d now previously scarce materials are available,and competition is returning to normal,pre-pandemic levels.2022 was a period of opportunity for us.We are very flexible and fast and can adapt and ensure we have the right stock for our customers.Often,when clients needed help to obtain materials from
173、their usual sources,we could step in and provide them.How are you approaching your strat-egy for next year?Our workforce will grow next year,as it has every year as our operations have grown in complexity.We ensure that we maintain a strategic approach to growth at all levels of the company.We have
174、what we call“zoom in zoom out”meetings.At First Quality Chemicals,everybody is very busy with their daily responsibilities,and we do not want our vision to shrink to the immediate future.Once a week,we“zoom out”and have a company meeting where we take a 30,000-foot view of the company.We analyze wha
175、t we need to start doing to innovate,change,dis-rupt and move the company forward.We strive to excel and be the best in the industry,and we are proud that our customers highly recommend us.One of the key strategies we have is our ap-plications lab,where we help our cus-tomers develop custom formulat
176、ions to solve their problems,improve their performance,and develop new mate-rials;on the other hand,at First Quality Chemicals we only hire the best talent and this ensures that we will continue being the best specialty chemicals dis-tributor in Mexico.What is the history of Nexeo Plastics in Mexico
177、?Nexeo will be celebrating its 50th anni-versary in 2023.In 2019,Nexeo Plastics was purchased by One Rock Capital,and since then we are a 100%plastics focused global distributor.We have been present in Mexico since 2011,and we began our operations with a focus on specialties and have since expanded
178、our markets and our portfolio of prod-ucts.We have invested significantly in our team to provide services not just within Mexico but to be sufficiently agile in the international import and export businesses.Mexico represents approxi-mately 10%of North America opera-tions,and 2022 was a year of sign
179、ificant growth for Nexeo Plastics in Mexico.Did the Ukraine war impact your op-erations?We have a significant European pres-ence,representing about 30%of our global operations.The political issues there are difficult for everyone.Like many international companies,we op-erated in Russia before the wa
180、r.We de-cided to close our business there and redirected our people to other activi-ties in our European operations.How is Nexeo Plastics Mexico invest-ing in digitalization?Arturo HoyoVice President Product Line Management North AmericaNEXEO PLASTICS We have invested significantly in our team to pr
181、ovide services not just within Mexico but to be sufficiently agile in the international import and export businesses.In June 2022,we launched our new dig-ital platform,MyNexeo.We designed our new platform to be a tool for our customers so that they can not only place orders,but also search and com-p
182、are products,view monthly offerings and the latest promotions,and track their orders in real-time.MyNexeo also allows customers to view their bills,see quality certificates,and find all necessary information.We have exceeded our goals in terms of the number of users and received excellent feedback f
183、rom our customers and sup-pliers.MyNexeo is a tool that incorpo-rates elements of artificial intelligence to provide us with more data about our clients and more information about what our clients are looking for while improving our clients experiences and access to our services.However,we are dedic
184、ated to maintaining a personal re-lationship with the client,so our chat is operated by real people providing our clients with one-on-one customer ser-vice.We will be launching MyNexeo in Europe in 2023.What differentiates you from other distributors?Our clients have operations worldwide,and we need
185、 to be right there next to them.Our technical competence,digital platforms and our people are key differentiators in the distribution space.Nexeo Plastics is developing a team with a global scope,and this dif-ferentiates us from other distributors.We position the company as a global player through a
186、n intense focus on developing our team.We aspire to be a destination employer for talented professionals in this country.Our hir-ing process is focused on fostering diversity of thought,multicultural perspectives,regional diversity,and multilingual expertise.Distribution is a people-driven business,
187、not an asset-driven one.People are our primary business,and we are investing in our team to be more agile in this interna-tional business landscape.How is Nexeo Plastics incorporating sustainability in its operations?When it comes to sustainability,we have two focuses.Our first sustainabil-ity focus
188、 is education.We are creating content for our clients and prospective clients to clarify and explain the envi-ronmental situation and help them de-termine what they want in terms of sus-tainable products.Our second focus as a business is on sustainability within our portfolio of products,providing b
189、iodegradable,compostable,recycled products,and so on.The reality is that the world wants greener products at the same cost,which is the great chal-lenge we are facing as an industryhow to provide our clients with more sustainable products at a competitive price.Nexeo Plastics is a global player in t
190、hese sustainability conversations.What is your strategy for the coming year in Latin America?We are growing organically in Latin America,and we have plans to continue fostering this regional growth.Costa Rica,for example,is a significant center of industry in Latin America,with many companies active
191、 in the country.Nexeo Plastics recently invested in a new dis-tribution center in Costa Rica to support those clients.To facilitate greater agility,we are investing in bringing our prod-ucts closer to our clients.Nexeo Plastics has 50 years of expertise,with a long-term focus on technical capacity.T
192、his expertise and our highly qualified team enable us to help our clients accelerate their product launches and facilitate their operations.78 79 I N T E R V I EWINTE RVIE WGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business Reports78 79 M E X I C O C H E M I
193、CA L S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 | Its Caldic time in Mexico!Caldic is a global leader in specialty ingredients and raw material distribution with presence in Europa,North America,Asia-Pacific and most recently in Latin America.With the fully integration and rebranding of GTM into Ca
194、ldic,the company expands its reach and leverages its portfolio and value-added services even further,focusing on bringing innovative solutions to the market.We offer solutions for several markets:AgroindustryCoatingsFoodHome CareLubricantsPersonal CarePharmaPlasticsPrinting&PackagingRubberThe shift
195、to remote work during the pandemic demonstrated the possibilities that digital tools provide,giving companies across the chemical industry an impetus to invest in techno-logical development.“Technology has always had a wide ca-reity of applications in our market.We see a shift towards a more digital
196、 industry,and we are acting,”said Valdivia.“Digi-talization benefits companies by lowering costs and improv-ing communication,as it is important to be close to the client.”A 2021 survey of distributors worldwide by Sage Group Plc in partnership with Kaleido Insights found that North Ameri-can compan
197、ies were ahead of other regions in their usage of cloud-computing applications,with 47%of North Ameri-can distributors using cloud applications for ERP and 44%for customer relationship management.Increased investment in the area is a growing trend among distributors worldwide:79%of distributors poll
198、ed had a strategy for digital transfor-mation and ecommerce.Digitalization of the distribution industry has multiple parts:the standardization of information through the adoption of ERP systems;the digitalization of revenue generation through the move into e-commerce;and various specific advances th
199、at com-prise the Internet of Things(IOT).Many Mexican companies are introducing advanced technological systems to oversee precise supply volumes,minimize waste,and reduce operational costs.“We are professionalizing our CRM systems to better serve our clients and improve the efficiency of our service
200、s,”said Ison.Investment in improved CRMs enables significantly improves internal efficiency.Digitalizing internal processes utilizing tools such as advanced analytics and the cloud,and developing com-prehensive digital customer interaction platforms allows distrib-utors to serve their clients effect
201、ively and efficiently.The move towards e-commerce sites and digital platforms for customer in-teraction is visible in the Mexican chemical distribution industry.In June 2022,Nexeo Plastics launched its revamped MyNex-eo customer site,which provides customers with access to more than 15,000 products.
202、Arturo Hoyo,vice president line management North America at Nexeo Plastics elaborated:“We already had an online portal,but the portal was primar-ily for handling orders.We designed our new platform to be a tool like Amazonthe customers can not only place orders but also search and compare products,v
203、iew monthly offerings and the latest promotions,and track their orders in real-time.”Digitalization is central to the DNA of Kigo Chemical,which launched during the pandemic.“We were born during the pandemic,and we faced serious questions about how we could start in a business that is oriented aroun
204、d people with-out access to people,”Alejandro Iniestra,managing director,said.“We decided to see the pandemic as an opportunity and launched our ERP with Microsoft.”Mexico is,however,a country with a culture known for ami-ability and sociability.In the cultural context of the country,it is unlikely
205、that systems will be completely digitized,or that front-facing human interaction will cease to be an expecta-tion.“We are not planning to substitute everything for digital because the human element is crucial,particularly in Mexico,where we have a warmer interpersonal culture,”said Valdivia.The valu
206、e a distributor creates is through their ability to turn physical products into cash.Historically,a distributors local knowledge and local infrastructure was their value-add.Digitalization will allow distributors to add value not just by using information to improve decisions related to inventory,bu
207、t also to leverage information and analytics to understand market trends,foresee future demand with greater accuracy,and identify and meet the specific needs of different clients.There is more value-add and concentration in Mexico because many of the arbitrage opportunities on material cost are base
208、d on the domestic US market space.”Jen Riley-Brady,Vice-President International,M HollandImage courtesy of Qumica DeltaGBR SeriesThe chemical distribution industries exits the pandemic with a new digital focusNew Technology TrendsWhat does the merger of GTM and Caldic mean for the Mexican market?Cal
209、dic has a very strong presence in life sciences,which is aligned with our focus on growing our specialty busi-ness in Mexico.Industrial chemicals is part of our day to day and we want to continue growing in that area,but our current focus is really on specialties.This is where our merger with Caldic
210、 is going to make a difference.We are very strong in paints and coatings,and we are working to consol-idate our growth in the food and phar-ma segments.This requires certain lev-els of investment by us and the brands we represent.The merger with Caldic has resulted in some changes to our portfolio.W
211、e would like our principals to see us as their logistics arm in the country,as a strategic partner to reach those clients that large manufactur-ers cannot directly reach.Additionally,through the merger of Caldic with Con-nell,which is subject to final approvals,we will expand our capacity to bring m
212、ore brands and products from Asia.Are you focusing on new talent acquisition as you shift towards specialties?Mauricio CrdenasCountry Manager Cluster MexicoCALDICThere is room to grow at double-digit rates in specialties in Mexico over the next five years,and that is our goal.Before,we had sales peo
213、ple that dealt with both industrial chemi-cals and specialties,but that has changed.We no longer have mere sales people,we have technical teams that add value to clients through knowledge and product de-velopment.Clients should not knock on our door for spot trades.Rather,we aim to build longer-term
214、 relation-ships with our clients.What opportunities do you see in Mexico for distribution?Mexico is a strategic provider to the US in every single industry that requires specialty solutions:food,pharma,paints and coatings,con-struction,etc.Mexico is also the country with the largest number of free t
215、rade agreements across the world,so there are great oppor-tunities to do business with other nations.Moreover,the process of nearshoring is putting Mexico in the spotlight as one of the largest receiv-ers of investment as supply chains re-regionalize.While Brazil is overall a larger market,the oppor
216、tunity to grow in the distri-bution segment is somewhat bigger in Mexico than in Brazil.There is room to grow at double digit rates in special-ties in Mexico over the next five years,and that is our goal.How is your product portfolio be-coming more sustainable?We have a team permanently looking for
217、new products,and as part of this process we constantly look at reduc-ing the use of synthetic products or replacing those products altogether with the use of ecological raw mate-rials.As a company,we have a com-mitment to reach zero emissions by 2024.Through our New Product In-troduction Platform,we
218、 identify op-portunities for new products in terms of how we can generate solutions for particular industries and clients.For example,we represent a company from Finland,FP Pigments,that has a product that reduces the usage of titanium dioxide in resins.This has a cost reduction implication,but also
219、 al-lows for lower emissions.Logistics is a key element for a dis-tributor.What are your strengths in this area?Logistics is one of the greatest strengths of Caldic.We have a Hous-ton office dedicated to logistics,and we have a strong position when it comes to negotiating shipping rates and better i
220、tineraries thanks to the large volumes we handle that is an advantage for both our clients and our principals.All this said,while we are a very large company with Caldic,and will be even bigger with Connell,we are still a very agile company in Latin America.What are the prospects for the company in
221、the years to come?We aim at having sustainable growth and being recognized for adding value across all our business lines.We be-long to an investment fund,and the idea is to continue growing.This can be achieved via organic growth and via acquisitions.Any M&A activity has to be strategic,meaning we
222、need to find companies that complement our business.We are currently looking for opportunities in Mexico,and we expect 20%to 25%of our growth to come from acquisitions.81 INTE RVIE WGlobal Business ReportsGBR SeriesGlobal Business Reports81 M E X I C O C H E M I CA L S 2 0 2 380 GBR Series80 M E X I
223、 C O C H E M I CA L S 2 0 2 3How does Trade Chemicals&Products support the Mex-ican chemicals industry?Trade Chemicals&Products(TCP)was founded 23 years ago to serve as a distributor for our principal market,sili-cone emulsions.As of 2023,we have been growing our Miguel ValdiviaManaging DirectorTRAD
224、E CHEMICALS&PRODUCTSstrength in silicones,with a presence in industries such as food-grade chemicals and defoamers.Regarding food-grade silicone emulsions,we focus on sweets,bread and tortillas.We serve paints,textile processes and water treat-ments in the defoamer area.And we are involved in yogurt
225、,tequila,juice,etc.TCP has continued growing in different commodities and we continue exploring and diversifying our presence in specialty chemicals.Our main base is over 5,000 square meters,consisting of a production area,a warehouse,and areas for industrial prod-ucts and food products.We have anot
226、her warehouse close to the Benito Juarez International Airport and a warehouse in Mrida,which serves the southeast region.TCP also has an in-house transport team with a fleet of trucks.Our operations cover all of Mexico,from Baja California to Quintana Roo.Where have you experienced growth in 2022?I
227、n 2022,we grew significantly on the chemicals side.We have directed our forces in the Bajio region and Sinaloa and Jalisco.We have expanded our presence in chemical products such as fertilizers.We want to improve our portfolio in the agricul-tural sector.TCP has grown 20%in this sector,and in 2023,w
228、e expect to continue this success.We also intend to direct energy into the cosmetics,food and detergents industries.How have raw materials shortages impacted your op-erations?In 2022,the industry experienced shortages,but these short-ages benefited TCP.Our clients needed to look for different produc
229、ts,and we were able to help them find what they need-ed.Sometimes we already had it,and sometimes we helped them find substitutes.The shortages allowed us to capture an excellent part of the market.It is better for us as a distribution company for the Mexican market to be experiencing short-ages tha
230、n not.However,the cost of containers coming from China has significantly dropped in the past year,allowing us to lower costs and increase offerings.As a result,we expect the shortages to end and a return to pre-pandemic prices in most areas.For 2023,I foresee a normalization of prices.How does TCP i
231、ncorporate sustainability?We are focusing on improving our sustainability metrics.We work with Polaquimia and Stepan to ensure that our products are better for the environment.Energy is also a priority for sustainability,and TCP is working to shift to so-lar energy.In the office,we dont use paper;al
232、most all our information is digital to reduce paper waste.A sustainable approach is fundamental to TCP.What makes TCP a partner of choice for your clients?Our principal strength is that we can formulate,making us more competitive compared to other companies.We are also successful due to our portfoli
233、o we carry what the client needs daily.We ensure that we have the most sig-nificant quantities of high-quality products possible.We are present and timely in our operations,with reasonable prices.Another strength is that we have our own transpor-tation team,which allows us to get the products to the
234、ir destination quickly and securely.Javier GonzlezDirectorQUIMISORHow has Grupo Quimisor grown since its founding?Grupo Quimisor began as a seller of polyethylene and has grown to over 100 employees,moving polyethyl-ene,polyporpylene,PVC,PET,and polystyrene.We are divided into three companies.Our co
235、re busi-ness,Grupo Quimisor,is based in Guadalajara and serves as a distrib-utor of raw materials.We also have a logistics company,Bagsack,that receives products by railcar.Finally,we have a transportation company called Servicios Profesionales SOR.In Guadalajara and Aguascalientes we have distribut
236、ion centers with railway tracks in both locations.Our bagging capabilities include ma-chinery for PET,PE,PP and PS.On the transport logistics side,we have vehicles from bulk trucks to mid-size trucks.Grupo Quimisor is integrated from reception of rail-cars,bulk deliveries,bagging equip-ment and ware
237、housing.Our involve-ment at all levels of the process differentiates us from our competi-tors,many of whom use third par-ties for their logistics and storage.What is your strategy for the coming year?One of our major priorities is to diversify our overall business and strengthen our logistics side,i
238、nclud-ing expanding our logistics center in the state of Aguascalientes,Mexico.In Mexico,there needs to be more rail infrastructure available for industrial use,so we see sig-nificant opportunities to grow and develop these other businesses Javier CortinaCEOPOSSEHLWhat is Possehls history in the Mex
239、ican market?We are 100%Mexican and dis-tribute raw materials to thirteen industries.Our primary market is Mexico,but we also have sales and marketing offices to service the South American markets.We have warehouses across Mexico,including Monterrey,Altamira,and Mexico City,among others,with a team o
240、f over 100.How can improving infrastruc-ture be prioritized in Mexico?Mexico has incredible opportu-nities,but the infrastructure is a major challenge.The most critical infrastructure is ports and inland roads.The ports have an excel-lent opportunity to expand,but decisions on the government side ar
241、e prolonged.How has Possehl positioned it-self for success in the coming year?We have,on one side,a high-val-ue technical service,which pro-vides after-sale support.Our sec-ond focus is maintaining agility in the decision-making process.We had an excellent year last year,so our objective is to have
242、an even better year this year.We want to grow our market share and move into areas where we are newer,including the food and beverage sectors and the ceramics and glass industries.Alejandro IniestraManaging Director KIGO CHEMICALS Kigo Chemicals is new to the market.Can you discuss your past two yea
243、rs?We launched Kigo Chemicals in 2020 and are proud to be a digi-tal company with different digital platforms.In January of 2023,we launched Kigo Connect.This plat-form lets our customers have a 360-degree visibility of our busi-nessthey can place orders,ask for quotes,check inventory,and so on.Our
244、digital approach dif-ferentiates us from the tradition-al distributor.Our ability to make blends also differentiates us from our com-petitors.We have three laborato-ries on-site in our park in Mexico City,with on-site formulation ca-pacities.We can store more than 2 million kilograms,which is a good
245、 amount of storage capacity for a specialty distributor.What is the strategy for Kigo Chemicals in 2023?These past few years have been good for all the distributors I know.The skyrocketing costs of raw materials make distributors lots of money.This year,things are going to change.The supply chain is
246、 improving,and there is more product in the market,so the main challenge is to keep growing while the prices of some raw materials fall.82 83 I N T E R V I EWINTE RVIE WGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business Reports82 83 M E X I C O C H E M I CA L
247、 S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 3LOGISTICS AND SERVICESGBR SERIES MEXICO CHEMICALS 2023Image courtesy of FR Terminales“All major companies,including those in the chemical industry,have sustainability targets requiring significant power usage shifts.In Mexico,sustainability will be drive
248、n by the private sector rather than the public.”Salvador Urbina,Vice President,Linde Energy&EngineeringImage courtesy of Katoen NatieGlobal Business ReportsGBR SeriesGBR SeriesOvercoming crime and anti-government protests to build improved logistics infrastructureDespite seeing significant growth an
249、d many opportunities due to the ongoing nearshoring trend,the Mexican logistics sector grappled with security challenges in 2022.According to ANIQ,in 2022 there were 2,854 incidences of road rob-beries in the chemical industry,of which 2,478 qualified as violent.Of those,53%occurred in Mexico State.
250、The impact of violence on chemical industry logistics is not merely an issue of random or small scale criminals.The strength of cartels and organized narcotics crime is a direct threat to the industry.Jorge Pedroza,director gen-eral of ED Forwarding,explained:There are certain towns where the rail p
251、asses or junctions are located where there is significant violence due to narcotics crime.There are substantial issues when the syndicates completely close down rail lines.The danger that narcotics crime will continue to play in 2023 was thrown into sharp relief by the extensive vio-lence following
252、the arrest of drug lord Olividio Guzmn-LogisticsLopez,the son of Joaqun El Chapo Guzmn.The cartels reaction included blocking roads,burning vehicles,and shooting at planes at the local airport,shutting down the movement of goods near Culiacn in Sinaloa.Rail blockages and stoppages are not just the r
253、esult of organized criminal activity.A common tactic of protesters is to shut down transit routes.I argue that blocking rail tracks is a federal crime and should be prohibited,stated Humberto Siller,CEO of Logstica Integral.We have asked the government to guarantee free transit,an established right
254、in the Mexican constitution.Free movement is not just about the free movement of people,but also commerce.The logistics sector supports the rights of the general populace to protest and free speech,however,the govern-ment must balance the right to protest with the right to free movement.At the momen
255、t,the government is far too deferential to protesters at the expense of the logistical needs of Mexican industry and the population at large.Infrastructure:The Private Sector Steps Up to the PlateThe lack of government investment in Mexicos infra-structure leaves the country unprepared to meet futur
256、e demand.Santiago Cars,CEO of Euromex Logstica,high-lighted the Port of Manzanillo as insufficient.He said:A serious issue for the industry is the capacity of the Port of Manzanillo.The quantity of cargo being handled signifi-cantly outstrips the capacity of the port.Roads and rail,too,need to be im
257、proved to meet de-mand.It is impossible to maintain commerce between the largest economy in the world and Mexico with only two-lane highways,said Siller.The incapacity of the road-ways to carry the necessary volume of vehicles not only leads to significant delays as goods are stuck in traffic,but al
258、so more accidents on the road.This was only exacerbated by a significant shortage of drivers on both sides of the border.Martin Sack,Regional Head Americas of Leschaco Group,stated,“In Mexico,the main concern was the shortage of trucks and truck drivers,a problem which will continue in 2023.”Accordi
259、ng to the In-ternational Road Transport Union,the shortage of drivers in Mexico grew by 175%in 2021,resulting in a shortage of 87,500 drivers,while Mexicos national chamber of truck-ing(Canacar)identified a shortage of 50,000 drivers.Despite these limitations,2022 offered noticeable op-portunities t
260、o celebrate public investment in the logistics sector.In March of 2022,the Felipe ngeles International Airport opened in Mexico City,relieving pressure on air infrastructure at the existing international airport.Addi-tionally,the Tehuantepec Isthmus Interoceanic Corridor project,which will allow for
261、 the movement of 1.4 million containers annually at the narrowest point between the two oceans,is expected to begin operations in 2023.Private investment,too,is an area of opportunity,and individual businesses have stepped up to fill the infra-structure gap.For example,in late October 2022,Kansas Ci
262、ty Southern(KCS)broke ground on its new International Railroad Bridge,which will cross the Rio Grande from Nue-vo Laredo,Tamaulipas,to Laredo,Texas.At the ground-breaking,KCS president and CEO Patrick J.Ottensmeyer stated:“The bridge will make this vital USMCA trade corri-dor safer,more fluid and se
263、cure,and relieve traffic conges-tion in Laredo and Nuevo Laredo.Rodrigo Ordoez,CEO of Mexico for Katoen Natie,high-lighted investment in the logistics sector,stating:Mexico is a significant market for Katoen Natie,and we invested US$41 million in the country.In the coming years,Katoen Natie is expan
264、ding our rail terminals.FR Terminals,a company with over 20,000 meters of rail-way tracks,is also investing significantly in Mexico.Ramn Isla Gmez,general manager,said:Currently,our most important expansion project is in the seaport terminal in Tuxpan,which will increase our storage capacity by 30%.
265、Demonstrating a similar commitment to the country,Leschaco Group is strengthening its presence in Mexico.Over the next 4-5 years,we expect to open one additional warehouse per year in Mexico,”stated Sack.On the ser-vices side,they will open a regional control tower in the country in 2023,demonstrati
266、ng the trend towards digita-lization.Francisco Glvez,Managing Director of Leschaco Mexicana,said,“The control tower will offer our customers import and export order management,adding technology and visibility tools to a process that is currently largely car-ried out by people.”Bordering the United S
267、tates,with access to both the Pa-cific and the Atlantic,and easy access to Central and Latin America,Mexico is exceptionally well positioned to attract growth and investment.Alfredo Maldonado,director of sales of Bollor Logistics Mxico,praised the countrys geographic position,which allows for just-i
268、n-time de-livery,saying:Many goods from China arrive only after major delays,which costs significant money,whereas in Mexico,goods can be transported to any city in the US within 24 hours.Leschaco is betting on the value of this geographic posi-tion.Sack said,“We want to re-open our own operation in
269、 Laredo,Texas,a joint project between Leschaco Mexicana and Leschaco,Inc.,as we expect a strong growth in the cross-border business between the US and Mexico.”It is the industrys hard investment in infrastructure that stands out in 2023.A collaborative approach to private sector investment in the lo
270、gistics industry demonstrates the sectors determination to take advantage of the bright future provided by regionalization.Siller explained:At Logstica Integral,we are always focused on collaborat-ing with our competitors.All the companies in the indus-try know each other very well,and we are all in
271、terested in achieving the same goals.87 E DITO RIA LGlobal Business Reports87 M E X I C O C H E M I CA L S 2 0 2 386 GBR Series86 M E X I C O C H E M I CA L S 2 0 2 3What is Leschacos current vision on a global and regional level?MS:In 2022,we have launched the Le-schaco Big Picture 2030,an ambitiou
272、s strategy plan which strives for fast growth on a regional and global level.Leschacos Big Picture is to unite all our employees,customers and busi-ness partners behind the same values,the same strategy,the same purpose and the same vision,while relying on who we are and focusing on the strength and
273、 well-being of our people.We already have initiated 8 strategic initiatives which build the core pillars of our Big Picture 2030.How do you develop talent for your workforce?MS:In Mexico we have always invested heavily in young talent by partnering with local universities.We hire 10 to 12 young appr
274、entices yearly who get approximately two years of training in addition to their university studies,and we plan to double this number by next year.Our model successfully finds capable employees for the orga-nization at an early stage.We are look-ing to export talent developed and trained in Mexico to
275、 other markets,such like Latin America,or even to our headquarters in Germany.Could you discuss the history and recent growth of Euromex Logstica?Euromex Logstica was founded in 2000 as a logistics business specifi-cally serving the tequila industry,and we have since expanded into other areas.We off
276、er flexitank and isotank transport.Over 20 years later,the te-quila business remains strong.There has been a real boom in tequila,par-ticularly after the pandemic,during which the consumption of alcohol in-creased worldwide by double digits.Accordingly,Euromex Logstica has experienced incredible gro
277、wth over the last two years.From 2020 to 2022,our tequila operations grew by 200%.In the area of flexitanks,we have also experienced significant growth.The pandemic led to an increase in home cooking and,therefore,an increase in the consumption of vegetable oils transported by flexitanks.Tequila and
278、 flexitanks are the two areas with the most remarkable growth.We also have an isotanks business segment for transporting dangerous chemi-cals.Now that China has reopened for business,there is significant demand Santiago CarsCEOEUROMEX LOGSTICAWe are one of the a few companies in Mexico to offer both
279、 flexitanks and isotanks for bulk liquid transportation by ocean.How has Leschaco Mexicana per-formed in 2022?FG:2022 was a good year for us and for the entire logistics industry,with a growth rate in in the double digits.All our products contributed positively to this growth.We were facing a lot of
280、 challenges due to the overall logistics disruption.In Mexico the main con-cern was the shortage of trucks and truck drivers,a problem which will continue in 2023.We currently have around 220 people in Mexico,and we are using Mexico more and more as a regional service center.How has the challenging
281、macroeco-nomic situation impacted your op-erations?MS:The economy started to slow down,and we have seen a clear drop in orders at the end of 2022.The general outlook for 2023 is challenging due to high infla-tion rates,slow economic growth,and the various global political turbulences.At the same tim
282、e,we have seen signifi-cant improvement related to logistics disruption.The transport sector is sta-bilizing more and more,and the freight rates in the main markets are decreas-ing.We expect a difficult first half-year 2023 with stagnating volumes,and a clear recovery during the second half-for chem
283、icals from Asia.Due to this,our isotanks business grew by 50%.We are one of the a few companies in Mexico to offer both flexitanks and isotanks for bulk liquid transportation by ocean.How does Euromex Logstica serve the chemical industry?Euromex Logstica uses isotanks to export and import a wide var
284、iety of products for the chemical industry.We receive the product in Mexico,de-liver to the factories and return the empty tanks,to continue the cycle.On the other hand,we have worked with a petrochemical client exporting plas-ticizers for over 15 years.We also ex-port resins for the paint industry
285、with our flexitanks.In addition,we can transport a wide variety of specialized products,working with companies such as Grupo Delta to transport spe-cialized chemicals from Asia.What has caused the significant growth in the flexitanks industry?Flexitank usage is growing faster than isotank usage beca
286、use flexitanks are year of 2023.Despite of the concerning environment,we see good chances to grow our market share through aggres-sive sales campaigns and innovative products.What is Leschaco doing to digitize its processes?FG:In 2023,we will continue with the global implementation of a new trans-po
287、rt management system and expect to provide productivity gains between 20%and 25%,once fully implemented.We are also proud to announce that we will install a regional control tower for our customers in the first quarter of 2023,which will be located in Mex-ico.This control tower will offer our custom
288、ers import and export order management,adding technology and visibility tools to a process that is cur-rently largely carried out by people.This control tower will utilize technol-ogy provided by our sister company,Logward,who is focused on digitized supply chain solutions.What is your overarching s
289、trategy for next year?MS:One of our main targets is diver-sifying our participation in different industries.We aim to grow in various verticals,such as automotive,health and home care,as well as minerals.We also strive to further increase our market share with the chemical indus-try.Over the next 4-
290、5 years,we expect to open one additional warehouse per year in Mexico.We also want to re-open our own operation in Laredo,Texas.On regional level,we want to further grow our geographic footprint in the Americas region.As part of this strategy,we already opened in 2022 new companies in Peru and Colom
291、bia.How are you planning to celebrate your 25th anniversary?FG:We are incredibly excited to cel-ebrate 25 years in Mexico,sharing that milestone with our employees,customers,and business partners.It will be a year-long celebration,not just one event.The highlight will be our 25th-anniversary celebra
292、tion in October.We will also organizing again our own logistics symposium in Mexi-co City in May 2023,for the first time since the pandemic.used to transport non-dangerous liquids.A flexitank is the cheapest option for transporting a bulk liquid.For example,it costs US$6,000 to bring a liquid from M
293、exico to Europe in an isotank,but only US$2,400 to bring the same liquid in a flexitank.Its an unbelievable price difference,and more businesses are shifting to flexitanks every day.We expect this growth to continue.We are posi-tioned exceptionally well in the Mexi-can market and are very content wi
294、th the quality of our service.In 2023,we will open an office in Guatemala for flexitanks and isotanks in addition to our pre-existing operations in Brazil and Argentina.What is the greatest challenge fac-ing the Mexican logistics industry?A serious issue for the industry is the capacity of the Port
295、of Manzanillo.Manzanillo is the largest port in Mexi-co in terms of the number of shipping containers processed,but it is the smallest port in terms of physical size.The quantity of cargo being handled significantly outstrips the capacity of the port.Due to the locations geo-graphic limitations,incr
296、easing the ports capacity will be challenging.Can you describe your focus for the next year?We are in an excellent position right now,experiencing significant growth.Our primary objective is to stabilize and organize ourselves to continue meeting the current workload and then to continue growing our
297、 market in Latin and Central America bit by bit.We have plenty of business right now,so we are focused on ensuring that our foundation remains strong and,from that position of strength,continuing to expand.Our growth strategy mirrors the growth of our clients,and we ex-pand to new areas based on the
298、 needs of our clients.For example,we have increased our business partners in Spain,because we have clients who need services between Mexico and Spain.We expect to con-tinue prioritizing our clients needs in our expansion strategy and our everyday operations.Martin Sack&Francisco Glvez MS:Regional He
299、ad Americas,Leschaco Group FG:Managing Director,Leschaco MexicanaLESCHACOMSFG88 89 I N T E R V I EWINTE RVIE WGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business Reports88 89 M E X I C O C H E M I CA L S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 3Jorge Pedroza
300、Alfredo MaldonadoDirector of SalesBOLLORManaging DirectorED FOWARDINGHow does ED Forwarding serve the Mexican chemical industry?We are a non-asset freight-forwarding company,but we have partnerships that allow us to diversify our operations.ED Forwarding has offices in the airport,Queretaro,Puebla,a
301、nd Guadalajara,and we will soon open an office in Monterrey.It has been an excellent year for freight forwarding with significant expansion.What infrastructural investments would improve Mexicos logistics sit-uation?There are significant issues with safety in transport by rail and road.Additionally,
302、customs regulations are complicated and in flux,and we need improved certainty for customs approvals.Ports and airports are collapsing,and as a country,we need significantly larger ports and airports.Regarding rail,the need for more in-vestment in the rail system limits what the industry can do.Mexi
303、co needs to double its rail infrastructure to serve the volume of Mexican industrial production.How have you managed insufficient infrastructure?The real problem with delays at the port Can you provide a summary of the ac-tivities of Bollor Logistics in Mexico?In Mexico,the majority of our traffic i
304、s to the US.We transport approximately 100,000 trailer boxes every day.Bollor Logistics Mxico is seeing significant growth within the country,and we are seeing growth across Latin America as a whole.How does Bollor Logistics Mxico support the chemical and petro-chemical industries?We offer the assem
305、bly and disassembly of plants and processes for the petro-chemical industry,ranging from fertil-izer plants to ethylene cracker plants.Our unique expertise is in assembly and rigging.We have the capacity to move entire plants.We disassemble,trans-port,and assemble them again.Where do you see areas o
306、f growth in Mexico?We see significant opportunities in the automotive industry in Mexico.Mexico is now highly positioned in the eyes of busi-nesses worldwide.Many goods from Chi-na arrive only after major delays,which was not caused by the pandemic but rather by staff shortages at the ports and airp
307、orts.They have quit not just be-cause of low salaries but also because of challenging hours.How have violence and crime impact-ed the Mexican logistics sector?There are certain towns where the rail passes or where you can transfer the railcars,where there is significant vio-lence due to narcotics cr
308、ime.The chem-ical industry has suffered from high rates of robberies during rail transit.There are also substantial issues when the syndicates completely close down rail lines.Another issue is fuel robbery,which happens all over the country.Why is Mexico an excellent place to do business?The youth a
309、nd the energy we have in Mexico are incredible.If we can support those youth with more modern univer-sities,this population will continue to be a major benefit.To take advantage of the benefits Mexico offers,we have three focuses:investment in technol-ogy,the education of our team,and growth in our
310、market.costs significant money,whereas,in Mexico,goods can be transported to any city in the US within 24 hours.Addition-ally,the cost of land transport is dramati-cally lower than that of maritime transit.We just decided to open an Automotive Competence Center in Mexico to take ad-vantage of this n
311、ew demand.How do you incorporate sustainabil-ity within your operations?We monitor our carbon output closely and produce detailed reports,which we offer to our clients so they can use them for their certifications and their own car-bon footprint monitoring.We audit our providers,ensuring that we ope
312、rate sus-tainably within our operations at all levels.We are also driving innovation to improve the carbon footprint of the logistics sector.Together with the entire logistics industry,Bollore is pushing for ships adapted to use LNG,which is cheaper and generates sig-nificantly fewer carbon emission
313、s.Is poor infrastructure in Mexico a chal-lenge for Bollor Logistics Mxico?No,the infrastructure that we have in Mexico allows us to import quite easily.Can you provide an overview of FR Terminales and its presence in the Mexican market?FR Terminales is a Mexican company that has over 25 years of ex
314、perience in the chemical sector.We focus on the storage and transloading services of chemicals,grains,minerals and plastic resins,as well as tolling and mixture of products.We can provide our services throughout the whole country through nine railway and one seaport termi-nals.Our objective as a com
315、pany is to strengthen the supply chain of our cus-tomers,guaranteeing the security of our cargo and personnel,while also meeting all regulatory demands and necessary permits for the proper handling of the products we manage in our facilities.How has FR Terminales contributed to the growth of the che
316、micals in-dustry in 2022?The entire supply chain suffered from setbacks in production costs and lo-gistics in 2021,so the role of logistic oriented companies such as FR Termi-nales was essential to meet the market demands of our clients nationwide.The chemical industry accounts for ap-proximately 90
317、%of our portfolio,and we are specialized in handling different chemicals.To do this well,our person-Ramn Isla GmezManaging DirectorFR TERMINALESWe have increased storage capacity of specialty chemicals to feed the auto and houseware industry,which is largely concentrated in the northern part of Mexi
318、co.nel undergo rigorous training,and we have several certifications,such as ISO-9001:2015.Also,we form part of ANIQs Responsible Care Management System(SARI),which sets ESG standards for chemical and petrochemical compa-nies that operate in Mexico.Our ability to specialize in the safe handling of ch
319、emicals has allowed us to expand our customer base and thus contributed to the growth of the chem-icals industry in Mexico.What were important lessons learned from the tight supply chain over the last two years?We faced operational challenges that required us to quickly adapt to our cus-tomers needs
320、,so we had to learn how to make our strategies more efficient and responsive to the different chemi-cal products that we handle.One of the most important lessons we learned is the need to invest in technologies and training of our staff to be as effective via remote work as in person.We are still se
321、eing disruptions to the supply chain because of the ongoing geopoliti-cal issues and the lingering effects of the pandemic.Our biggest challenge now is attuning to the logistical problems in Mexico,where investments are needed in terms of infrastructure and operation capacity.While we are being caut
322、ious about making large investments due to a potential global recession,we are still expanding our customer base and im-proving our systems.For example,we increased our installed capacity to be able to stockpile high-demand products and be able to maintain the supply chain active.We have seen trends
323、 toward spe-cialty chemicals to feed the auto and houseware industry,which is largely concentrated in the northern part of the country,so we have increased the stor-age capacity of these chemicals.We also learned to strengthen our relationships with our regional trade partners,given that 80%of the p
324、rod-ucts we receive in our terminals come from the US and Canada.How has FR Terminales adapted to the increase in the cost of petro-leum?We have implemented a series of ini-tiatives to optimize the use of energy,which have allowed us to significantly reduce operational costs.We have also improved ou
325、r procurement strategies.Additionally,we have invested in state-of-the-art equipment and proper per-sonnel training to make our operations more environmentally friendly.Many of these changes have also been driven by our customers,as they are also opting to minimize their environmental im-pact.In fac
326、t,many of our customers opt to use our railways systems because of the minimal carbon emissions and high quantity delivery.What is FR Terminales objectives in 2023?We are a company that prides itself in meeting the needs of our more than 180 customers.Currently,our most important expansion project i
327、s in the seaport terminal in Tuxpan,which will increase our storage capacity by 30%.At the same time,we are diversifying our portfolio and expanding our knowledge on the safe and efficient handling of specialty chemicals that are in demand.Our focus is to support our domestic and international custo
328、mers and open Mexico to more companies.The chemi-cal industry is essential for the growth of the Mexican economy,and we want to expand our services and expertise to better serve our clients.90 91 I N T E R V I EWINTE RVIE WGBR SeriesGlobal Business ReportsGBR SeriesGlobal Business ReportsGBR SeriesG
329、lobal Business Reports90 91 M E X I C O C H E M I CA L S 2 0 2 3M E X I C O C H E M I CA L S 2 0 2 3Image courtesy of AirliquideAs multinational corporations and the chemical sector at large have increased their demands for sustainability along the value chain,the services sector is seeing growth in
330、 pro-cesses that improve sustainability metrics.The prioritization of sustainability has included investment in the move to-wards a circular economy,a focus on improved efficiencies through digital solutions,and a continuing desire for afford-able renewable energy.Jos Mara Bermdez,CEO of Viakem,whic
331、h provides cus-tom and contract manufacturing solutions,sees growth in the agrochemical and performance chemicals sectors,where sustainability is increasingly a major priority.He stated,“A significant amount of our participation is in high-growth es-sential value chains.”Assisting the chemical indus
332、try to improve efficiency in processes is central to the support the services companies provide.As Astrid Gonzlez,chemical industry manager of Endress+Hauser Mxico,explained:“The question for the chemical and petrochemical industries is how to modernize and digitalize in transformative ways.In the p
333、ast,there often wouldnt even be Wi-Fi in the industrial section of a plant.”Connecting the processes from beginning to end in a tech-nologically advanced way enables growth for the industry.This shift,however,requires chemical companies to priori-tize talent and recruitment,said Jos Ruiz,CEO of Alder Ko-ten IMD.“In order for companies to be part of the Fourth In-dustrial Revolution(Industry 4.0),t
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