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MEXICO
CHEMICALS AND PETROCHEMICALS
2021
Economy - Covid-19 - Chemicals - Petrochemicals - Agrochemicals
Specialty Chemicals - Paints and Coatings - Distribution & Logistics
Dear Reader,
Global Business Reports (GBR) is delighted to present the 2021 edition of its guide to
Mexico’s chemical and petrochemical industries. The report pays attention to the main
players that make up the full chemical value chain, including associations, producers,
distributors, logistics providers and service companies. We also cover the different sub-
segments of the chemical industry, including specialty chemicals and agrochemicals.
Economic turmoil in Mexico mirrored the Covid health tragedy in 2020, as GDP in
Latin America’s second-biggest economy fell by 8.5%, its sharpest annual contraction
since the Great Depression in 1932. However, certain segments of Mexico’s economy
offer rays of hope, including its chemical industry, deemed essential by the government
because it supplies raw materials to over 30 different sectors.
To fully take advantage of Mexico’s vast domestic potential for growth and position
as a global manufacturing hub for the export market, the country must first iron out
structural issues that have held it back. The AMLO government’s policies, embodied
by the issues surrounding Pemex, have resulted in a lack of feedstock for the country’s
chemical industry.
Despite the challenges, chemical supply to the pharmaceutical industry, sanitization
products and raw materials for healthcare, agricultural products and packaging for the
food industry have all remained strong throughout the crisis, achieving above or close
to double-digit growth in 2020. These industries, and the expected rebound on the
infrastructure market, will play a fundamental role in Mexico’s economic growth in
2021, estimated by the World Bank to be in region of 3.7%.
The following pages are the culmination of over 50 interviews conducted with key
decision makers, to provide a holistic view of the companies and themes shaping the
industry today. The result is the production and distribution of ‘Mexico Chemicals and
Petrochemicals 2021’. We would like to thank all our interviewees that have taken the
time to provide their valuable insights. To all our readers, we encourage your feedback,
and welcome interest in being interviewed for future reports.
Alfonso Tejerina
General Manager and Director
GBR
CONTENTS / MEXICO CHEMICALS AND PETROCHEMICALS 2021 Introduction
to Mexico
N
Introduction to Mexico The impact of Covid-19, how
Mexico’s chemical industry can
8. Introduction to Mexico boost the economy, and the
11. Interview with the National Association of the Chemical Industry (ANIQ) importance of sustainability
12. Sustainability
13. Interview with Evonik Industries
14. Interview with Honeywell Performance Materials and Technologies
8, 9, 10, 12
15. Interviews with Linde and with Industria Química del Istmo (IQISA)
UNITED STATES
Petrochemicals
18. Petrochemicals
Mexicali
20. Interview with Unigel
21. Interviews with Braskem Idesa and with Alveg (Grupo Idesa)
22. Interview with Grupo Petroquímico Beta (GPB)
Agrochemicals
Hermosillo 26. Agrochemicals
28. Interview with UMFFAAC
Chihuahua
29. Interview with PROCCYT
Agrochemicals
Gu
31. Interview with Agricultura Nacional (Grupo Dragon)
lf o
32. Interview with AMVAC
f
33. Interview with FMC
Ca
A booming industry
35. Interviews with Acadian Plant Health and with Agri Star
lifo
offers opportunity both
rni
domestically and in the
a
Monterrey Specialty Chemicals export market. We speak with
Saltillo
Culiacan the main players in Mexico.
38. Specialty Chemicals
Durango
La Paz Ciudad 40. Interview with Charlotte Chemical
Victoria
Gulf
41. Interview with Croda 26, 27, 30, 34
Zacatecas 42. Interview with Grupo INFRA
San Luis of
Potosi 44. Interview with Órgano Síntesis
Aguascalientes Mexico
45. Interviews with Key Química and with Lanxess
Merida
Tepic Guanajuato 46. Interviews with Castrol and with Lubrizol
Queretaro 47. Interviews with EUCLID Chemical and with SNF Floerger
Guadalajara Pachuca Campeche
Mexico City Jalapa Paints and Coatings
Colima Morelia Chetumal
Toluca Tlaxcala
Cuernavaca Puebla 50. Paints and Coatings
Villahermosa 52. Interview with ANAFAPYT
53. Interview with Reacciones Químicas
Chilpancingo BELIZE
54. Interview with Kemikals
Oaxaca
55. Interview with WYN
Tuxtla
Gutierrez
GUATEMALA
HONDURAS
Distribution Specialty
58. Distribution
60. Interview with Pochteca
Chemicals
EL SALVADOR 61. Interview with Química Delta
Mexico 62. Interview with Nexeo Plastics
Adding value to specialized and
complex industrial sectors. We
63. Interviews with DVA and with PromaPlast analyse the performance of
International Boundary
different market segments.
State Boundary
Pacific Logistics, Services and Technology MEXICO CHEMICALS AND
PETROCHEMICALS 2021
National Capital
Ocean Industry Explorations
State Capital 66. Logistics
68. Interview with Leschaco
Global Business Reports
This research has been conducted by
38, 39, 43
Ben Cherrington, Mariolga Guyon,
69. Interview with Cryoinfra Maria Filippova and Jason Spizer
Edited by Mungo Smith
70. Interview with Marie Tecnimont Graphic design by Gonzalo Da Cunha
71. Interviews with Wittmann Battenfeld and with Haitian
A Global Business Reports Publication
For updated industry news from our
on-the-ground teams around the world,
74. Concluding Thoughts please visit our website at gbreports.com,
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0 100 200 300 Miles or follow us on Twitter @GBReports and
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INTRODUCTION
TO
MEXICO
“The chemical industry was named as essential by the
government, as it supplies raw materials for more than 30
sectors. Chemical supply to the pharmaceutical industry,
sanitization products and raw materials for healthcare, as well
as agricultural products and packaging for the food industry,
have all remained strong. In fact, each of these sub-sectors
achieved close to or above double-digit growth in 2020.”
- Miguel Benedetto,
Director General,
ANIQ
(NATIONAL ASSOCIATION OF THE CHEMICAL INDUSTRY)
GBR • Industry Explorations • MEXICO CHEMICALS AND PETROCHEMICALS 2021
Photo by Emilian Danaila on Pixabay
EDITORIAL Global Business Reports Industry Explorations EDITORIAL
Introduction Bank to be in region of 3.7%. “Chemical
supply to the pharmaceutical industry,
sanitization products and raw materials
tively impacted the competitiveness of
Mexico’s chemical industry and many
downstream industrial segments. The
rector of Evonik Industries’ Mexican
division, citing that an open business
mindset and more than 50 free trade
healthcare sales to the government
decreasing in 2020, from a long-term
perspective, Mexico offers opportunity Because of the size of the
to Mexico for healthcare, and agricultural products
and packaging for the food industry
country’s ability to address the issue
will be key to its progress in the years
agreements gives the country access to
over 60% to 70% of global GDP.
for growth for multinationals, due to the
size of the country and its population,
country and its population,
as well as its strategic
have all remained strong. In fact, each ahead. The automotive industry was the front- as well as its strategic position between
of these sub-sectors have achieved runner in this respect, but in recent the US and Latin America”.
position between the US
close to or above double-digit growth years, other sectors have followed the Abraham Klip Moshinsky, director gen- and Latin America, Mexico
in 2020,” revealed Miguel Benedetto, A Global Manufacturing Hub same strategy of establishing global eral of Plastiglas, the Mexican subsidiary is an important market to
director general of ANIQ (Asociación manufacturing facilities in Mexico due of Unigel, cited the company’s export be in. There is uncertainty
Nacional de la Industria Quimica). “So far from God, so close to the USA.” to its logistics network throughout the business of acrylic sheets as being one
MEXICO’S CHEMICAL INDUSTRY
In the first quarter of 2021, the rebound The famous quote attributed to former Americas, proximity to North America, of the key drivers which contributed to
right now with the current
CAN HELP ITS ECONOMY REBOUND of sectors that suffered in 2020, such Mexican president, Porfirio Diaz is a rue- cheap labor and running costs, and a a record breaking year in terms of vol- administration, but from a
IN 2021, BUT STRUCTURAL ISSUES as construction, infrastructure and the ful reflection on proximity to a powerful, favorable regulatory framework for for- ume sold. In Q4 2020, Unigel finished long-term perspective, the
auto industry, in addition to the success expansionist neighbor. However, this eign trade. building a new US$8 million plant in country offers opportunity for
NEED TO BE ADDRESSED
of vaccine rollouts in countries such as proximity also has its benefits. Indeed, An example of Mexico’s growing pres- Mexico to produce extruded sheets to
the UK and Israel, signify light at the AMLO offered a new spin on the Diaz ence as an international manufacturer complement Plastiglas’ production of
growth for multinationals.
end of the tunnel and a roadmap for quote: “Lucky Mexico, so close to God is Apotex, a private pharmaceutical cell cast acrylic sheets and production
reopening economies throughout the and not too far from the United States.” company with products present in 115 started in December. “As the market - Américo García,
year. Speaking at the Mexico-US summit on countries. Apotex has three manufac- for this is small in Mexico, it is a product
Managing Director -
Mexico’s growing role as an internation- March 1st, 2021, in his first official meet- turing sites in Mexico, two for APIs in we are looking to export. The demand
Economic turmoil in Mexico mirrored al manufacturing hub, its strategic posi- ing with new US president Biden, the Toluca and Cuernavaca, and one for for acrylics for schools, offices and the Latam,
personal tragedy in 2020, as GDP in tion as the gateway between North and Mexican president was keen to “reaf- finesse dosages in Mexico City. Améri- health sector in the US in increasing, Apotex
Latin America’s second-biggest econo- Latin America, and its large domestic firm an enduring partnership” with his co García, managing director of Apo- and we believe this is a growth area in
my fell by 8.5% in seasonally adjusted market with room for middle-class ex- country’s biggest trading partner. tex’s Latam operations, said: “Despite the coming years,” said Moshinsky. ■
terms, according to the estimate issued pansion, offer its chemical industry am- The USCMA (United States–Mexico–
by national statistics agency INEGI. This ple opportunity for significant growth. Canada Agreement), often referred to
was the sharpest annual contraction in However, to fulfil its potential, the coun- as the “New NAFTA”, came into effect
Mexico since the Great Depression in try will have to address a number of on July 2nd, 2020, and adds continu-
1932, and compounded the misery for a structural issues that go beyond Covid. ity to a trade deal that has transformed
country mourning over 210,000 official Benedetto suggested that Mexico’s Mexico into an international hub for
Covid-19 deaths by April 2021. chemical industry could achieve pre- manufacturing and exportation. Al-
In reality, Mexico’s Covid body count pandemic levels of production by the though the country’s domestic market
is even more sobering. A revised re- end of 2021, but 2019 was also a chal- has suffered in recent years, its chemical
port issued by Mexico's health ministry lenging year. Low petrochemical prices exports have risen incrementally. “The
showed that, by the end of the sixth have put pressure on margins, and a implementation of the USMCA certainly
week of 2021, there had been 294,287 lack of feedstock, a persistent problem helps us from an export point of view,”
deaths "associated with Covid-19" - in Mexico, has forced some producers, reflected Miguel Benedetto, who men-
up from the 182,301 confirmed figure including Braskem Idesa, to rely on im- tioned that during discussions to create
given previously. This equates to a rate ports to maintain their projected levels the agreement there were three main
of excess deaths during the pandemic of output. Protectionist policies imple- factors ANIQ focused on, which have all
well above the only three countries with mented by the Lopez Obrador (oth- been implemented.
more recorded fatalities – the US, India erwise known as AMLO) government Firstly, there are now more ways to fulfil
and Brazil, all of which have far larger have contributed to sluggish economic the requirements of rules of origin; sec-
populations than Mexico. Furthermore, growth and a lack of foreign investment. ondly, there is a level playing field for
the financial burden lockdown restric- The issues surrounding NOC Petroleos legislation; and finally, an investment
tions have placed on a 58% informal Mexicanos (Pemex) are emblematic of chapter has been incorporated into the
workforce (per INEGI estimate) has cur- the challenges facing Mexico and its agreement to recognize private sector
tailed consumer spending. chemical sector, with the industry un- investment by American and Canadian
Despite the somber backdrop, certain able to go beyond a 70% utilization rate companies in Mexico – “A point that
segments of Mexico’s economy offer due to the limitations of its heavily in- was excluded in the 1994 NAFTA be-
rays of hope for a country in dire need debted state oil company. A shortage cause the energy sector was restricted
of a rebound. Its chemical industry, of natural gas, methane and ethane to Pemex (this was opened up in 2013,
deemed essential by the government resulted in Mexico importing US$32 and has been included in the USMCA),”
because it supplies raw materials to billion in petrochemicals to feed the added Benedetto.
over 30 different sectors, will play a chemical industry value chain in 2019, as “Mexico is becoming more of a pow-
fundamental role in Mexico’s economic well as an additional 7 billion cubic feet erhouse for global exports platforms,”
growth in 2021, estimated by the World per day of natural gas. This has nega- stated Martín Toscano, managing di-
8 MEXICO CHEMICALS AND PETROCHEMICALS 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 9
FA C T S H E E T Global Business Reports Industry Explorations INTERVIEW
Installed Chemical Industry Capacity in Mexico To what extent has the situation for Who do you think the implementation
Source: ANIQ Mexico’s chemical industry improved of the USMCA will boost Mexican ex-
%
in the second half of 2020, and which ports to the US and Canada?
85
sub-sectors have performed well? The implementation of the USMCA, or
The chemical industry was named as es- T-MEC (Tratado entre México, Estados
80
sential by the government as it supplies Unidos y Canadá), certainly helps us
raw materials for more than 30 sectors. from an export point of view. During dis-
75 As many of these sectors reopened in cussions to create the T-MEC, there were
Q3 this year, the second half of 2020 has three main factors we were working on,
70 improved. Furthermore, exports from the which I am glad to say have all been im-
chemical industry directly and indirectly plemented. Firstly, rules of origin – there
65 to the US rebounded. The pandemic re- are now more ways to fulfil the require-
duced sales from January to August by ments. Secondly, a level playing field
60 9.5%, so it was had a significant impact. for legislation. Finally, to incorporate an
However, the sector’s recovery in Q3, investment chapter in the agreement to
55
12-2015 06-2016 12-2016 06-2017 12-2017 06-2018 12-2018 06-2019 12-2019 06-2020 12-2020
Miguel combined with an improved economic
outlook, has restored optimism.
Chemical supply to the pharmaceutical
recognise private sector investment by
American and Canadian companies in
Mexico – a point that was excluded in
National Consumer Price Index (INPC) of the Chemical Industry (% variation)
Sources: ANIQ/INEGI
Benedetto industry, sanitization products and raw
materials for healthcare, and agricultural
the 1994 NAFTA because the energy
sector was restricted to Pemex (this was
products and packaging for the food in- opened up in 2013, and has been includ-
% Monthly change INPC IQ (montly change) INPC IQ (yealy change) % Yearly change dustry have all remained strong. In fact, ed in the T-MEC).
2.000 12
each of these sub-sectors have achieved
1.375 10 close to or above double-digit growth in ANIQ has set targets for recycling in
2020. Construction, infrastructure and 2020, 2030 and 2040. What steps are
0.750 8 Director General the auto industry have struggled in 2020 you taking to achieve these?
0.125 6
ANIQ and were the sectors most impacted by The 2020 objective is that producers,
(NATIONAL ASSOCIATION OF THE the lockdown. However, they have re- transformers, distributors and transpor-
-0,500 4 bounded in Q3, and we expect this to tation companies should waste zero pel-
CHEMICAL INDUSTRY)
continue in 2021. lets. In December, we will be conducting
-1.125 2
the first survey where every company can
-1.750 0 Considering the shortage of feedstock let us know the actions they have taken
for Mexico’s chemicals industry, where and the results they have achieved. By
-2.375 -2
is raw material sourced from, and how February 2021, all the companies that
-3.000 -4 is ANIQ working with industry and are manufacturing or producing resins
07-2017 01-2018 07-2018 01-2019 07-2019 01-2020 07-2020 01-2021 government to address this? will have to establish the percentage of
In energy and national gas, 90% of Mex- recycling they will incorporate each year.
GDP Evolution in US Dollar Value Chemical Industry Investment ico’s imports come from the US. In 2020, Looking further ahead, by 2030 the in-
Source: IMF Source: ANIQ the Valley Crossing Submarine pipeline dustry’s packaging must be 80% recy-
Billion US$ Billion US$ from Houston to Mexico was completed, cled, and by 2040, 100% of all plastics
1,450 6.5 which is providing a lot of energy. With and packaging should be recycled.
1,400 6.0 ANIQ is working between regard to raw materials and petrochemi-
cal products, 60-70% come from US. Eu- Where would you like to see the in-
1,350 5.5 industry and government to rope and Asia supply from 10-12% each, dustry by the end of 2021?
1,274
1,300 5.0 develop joint projects together with the rest coming from Latin America. We would like to have all the energy and
1,250 4.5 in the energy sector to ensure Latam represents 50% of our exports, raw materials we require as an industry.
1,180 with Brazil, Colombia and Argentina be- We also need to define which companies
1,200 4.0
a more reliable source of
1,150 3.5
ing the key markets in this region. are interested in investing in the Pemex
feedstock coming from Pemex. ANIQ is working between industry and infrastructure in order to increase the
1,100 3.0
government to develop joint projects in raw materials Mexico’s chemical industry
1,050 2.5
the energy sector to ensure a more re- needs. In 2021, the pandemic will still
1,000 2.0 liable source of feedstock coming from have an impact, but we are forecasting a
1.4 Pemex. We would like industry to be recovery of 2% to 5%. By 2022, we want
950 1.5
1.0 able to invest in Pemex facilities, either to achieve pre-pandemic levels. Finally,
900 1.0
to make inputs and create infrastructure, we intend to show that the environmen-
850 0.5
or to invest into Pemex assets that have tal commitments we have made for 2020
800 0.0 been left idle due to a lack of govern- were achieved, and the legislation need-
2011 2012 2013 2014 2015 2016 2017 2018 2019 2011 2012 2013 2014 2015 2016 2017 2018 2019 ment resources. ed to conform with T-MEC is on its way. ■
10 MEXICO CHEMICAL AND PETROCHEMICALS S 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 11
EDITORIAL Global Business Reports Industry Explorations INTERVIEW
Sustainability animal fat or cooking oil and transform
it into 100% ‘green diesel’ or ‘green jet
fuel’. He elaborated: “This is a drop-in
Sustainable initiatives are not only the
realm of multinational corporations. 10
years ago, Mexican entrepreneur Ana
Martín
type of product, meaning you can sub-
stitute the fossil fuel diesel for 100%
Laborde, created BioSolutions Mexico,
which had started as a school project
Toscano
green diesel, and the engine will work while she was studying for a masters
exactly the same.” in innovation at Monterrey Tech Uni-
Another key focus area for Honeywell versity. At the time, most biomaterials
‘THE GREEN RESET’ IS PMT is circularity, and the company were made out of food, such as pota-
Managing Director
ACCELERATING SUSTAINABLE has developed a process to convert toes or corn, to extract cellulose and
wasted plastics into a polymer oil that starches, but Laborde wanted to cre- EVONIK INDUSTRIES (MEXICO)
INITIATIVES
can be used in the petrochemical in- ate something similar without using a
dustry. Furthermore, Honeywell’s Sol- food source, which led BioSolutions to
stice product line of reduced and low the agave fibers found in tequila. After
global-warming-products (GWP) based developing a technology which allowed
on HFO technology has resulted in the the company to create bio-based com- How has Evonik performed in Mexico the innovation of our customers along health risks and then resolving logistics
reduction of more than 210 million met- posites that are composed of a resin in 2020, and to what extent has the the value chain. This involves engag- bottlenecks to make sure products were
ric tons of greenhouse gases to date, with a cellulose in order to create a pandemic impacted the company’s op- ing with different stakeholders to get a supplied to customers.
There was a school of thought that equal to eliminating emissions from material, BioSolutions’ received its first erations? broader view of how solutions can be
considered, in the wake of the financial more than 44 million cars, detailed Fer- patent in 2015, and in 2018 received a In 2020 Evonik will actually achieve developed and brought to the market What do you think are the biggest
destruction brought on by Covid-19, nandes. contract with Heineken to make bio- higher sales in Mexico than in 2019, for quickly. Evonik also engages with ven- challenges facing Mexico’s chemical
sustainable initiatives would take a back Sergio Paredes, CEO of Resirene, based plastic cups used at music fes- both, turnover and volume. A diverse ture capital organizations in investments industry?
seat as governments look to reignite spoke of how the pandemic has high- tivals and sports arenas. During the and resilient product portfolio of spe- into start-ups and SMEs who are doing One of the biggest challenges we have
broken economies through cheap fos- lighted the importance of plastics for pandemic, BioSolutions donated some cialty chemicals is the main reason be- earlier stage work with new technologies is the lack of access to competitive raw
sil fuel energy. In fact, the opposite its sanitary benefits, but acknowledged of its PolyAgave injection materials for hind this performance. Evonik Industries that can benefit our right to play in differ- materials coming from the downstream
has happened, as what is being called the industry faces challenges from a the production of face visors. “In the is well represented in Mexico through ent industries in the future. of the petrochemical industry. Also, a
‘the great reset’ has seen government waste disposal standpoint. To counter last two years, we have seen an interest all its business lines, which allows us to lack of infrastructure for transportation
policy shaped by environmental con- this, Resirene has launched Biorene, a from a lot of companies to learn about reach sectors which are heavily involved The food industry has gone from and energy holds us back. I think that
cerns. “Biden’s economic agenda is product line of biodegradable packag- biomaterials. The market now seems in local manufacturing for regional and strength to strength regardless of Mexico enjoys a very good position with
his climate agenda; his climate agenda ing that allows clients to benefit from a ready for this type of technology,” con- global markets. macro conditions. What involvement young talent in our social pyramid to de-
is his economic agenda,” commented component of thermoplastic starch with cluded Laborde. ■ does Evonik have in this segment? velop business domestically, but what is
Sam Ricketts, co-founder of the climate polystyrene or propylene. “This helps Why do you think Mexico is a strate- Mexico has become a net exporter of missing is a clear agenda with the pub-
policy group Evergreen. balance environmental impact, and can gic country for world manufacturers in animal protein, especially for beef and lic sector in order to get the necessary
In Mexico’s chemical industry, ANIQ substitute polystyrene in some pro- many industries? pork, to markets including the US and support that incentivizes further invest-
has set ambitious targets for recycling cesses. Consumer habits have evolved First of all, Mexico’s open business mind- Asia. In the agricultural business we have ments in the country. Today the chemical
in 2020, 2030 and 2040. The 2020 and the market is looking for recycled set, with over 50 free trade agreements, seen 6-7% growth per year in the fruit industry is running at a lower rate than
objective was that producers, trans- products. We began development of gives the country access to over 60% to and vegetables segment. An increase in the installed capacity, so the potential to
formers, distributors and transporta- technology at pilot stages to increase We have clients that have 70% of global GDP. Investment has con- demand for organic products from re- grow is there.
tion companies should waste zero pel- the use of recycled material, and 30% is tinued to flow into various segments in tailers in the region has been key to this
mentioned that if they do not Mexico, with the automotive industry growth for Mexican famers. Addition- Will Evonik be looking to grow organi-
lets, outlined ANIQ’s director general, our target,” explained Paredes.
Miguel Benedetto, who added that the For multinational corporation, Linde, use environmentally-friendly being a frontrunner, but in recent years ally, the recent renewal of the free trade cally or through acquisitions in Mexico
association is also working with the gov- which merged with Praxair in 2018, envi- products they are at risk of other sectors have followed the same agreement between Mexico and Europe in the coming years?
ernment to incorporate the manage- ronmental commitments extend across being taken off the shelf at strategy of establishing global manufac- has increased our participation in food As part of Evonik’s North American op-
ment plans companies are making to jurisdictions and go beyond what is turing facilities here. Mexico’s proximity markets. erations that include the US and Canada,
achieve their recycling goals. “Looking
Walmart. New generations are to the US and logistics network through Mexico benefits from M&A activity made
required by regulatory frameworks, ac-
further ahead, by 2030 the industry’s cording to Salvador Urbina, VP business willing to pay a bit more for the Americas, labor and running costs, Do you think sustainable initiatives by the group in this region. Typically, we
packaging must be 80% recycled, and development and marketing for Linde’s sustainable products. and a favorable regulatory framework will be incentivized under the ‘green feel the benefit from acquisitions made
by 2040, 100% of all plastics and pack- Latam North division. “One such target for foreign trade make the country an reset’, or will challenging economic in the US, and this has been the case in
aging should be recycled.” is producing nitrogen through clean attractive base for multinationals and for conditions mean the cheapest prod- the last five years. Right now we are in
José Magalhães Fernandes, vice presi- methods from clean energy sources
- Ana Laborde, the further expansion of Mexican com- ucts will be favored? the integration process to incorporate
dent for the Latin America region at such as wind and solar instead of fossil CEO & Founder, panies. Overall, the strong sustainability agen- these new businesses. On top of this,
Honeywell Performance Materials & fuels. This green nitrogen is important BioSolutions Mexico da of the private sector is aligned with there are increasing local and regional
Technologies (PMT), affirmed that sus- for mobility and for the production of Can you explain how Evonik is accel- governments around the world. This will accounts in Mexico within Evonik’s busi-
tainability is the step change in the other gases such as methanol,” he said, erating the ‘time to market’ aspect of continue to drive the way we do busi- ness lines which are contributing to or-
strategy of the company’s PMT division. adding that the company has invested innovation? ness. Covid-19 was a good reminder ganic growth, which mirrors the com-
He gave the example of Honeywell heavily in infrastructure for the cons- We believe not only in the innovation that this is the right path. In 2020, most pany’s global strategy to grow through
UOP’s Ecofining technology, which is truction of solid oxide electrolyzer cells fields that Evonik develops globally, but governments and companies have been a diversified portfolio of specialty chemi-
developed to hydrotreat vegetable oil, and filling stations. also in the increasing trend of following focused on fire-fighting to mitigate cals. ■
12 MEXICO CHEMICALS AND PETROCHEMICALS 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 13
INTERVIEW Global Business Reports Industry Explorations INTERVIEW
José Salvador What are the main product lines Linde works with in Mexico, and which have been
performing well in the last two years?
Linde’s market segmentation is broad: not one line represents more than 15% of the
Magalhães Fernandes Urbina company’s total. The resilient sectors have been health, food and beverages, and the
environment – the denominated “special gases” are very significant for this last sec-
tor. Linde owns the biggest lab in Latin America for special gases and has a myriad of
mixes from which to produce components. For example, we have verification centers
for the automobile industry where we use products to test sustainability parameters
and the car gas emissions. Additionally, we supply the majority of steel companies
Vice-President– Latin America Region VP Business Development &
in the country as well as manufacturers in the automobile, aerospace and electronics
HONEYWELL PERFORMANCE MATERIALS & TECHNOLOGIES Marketing – Latam North industries. Linde also has important contracts with the energy sector – both private
LINDE and public. Finally, we supply hospitals and healthcare centers with gases that are
important for therapeutics such as oxygen, hydrogen and nitrogen – Linde is the only
producer of nitrous oxide in Mexico.
How do Linde’s products contribute to a sustainable economy?
How significant is Honeywell’s pres- address these challenges by creating petrochemical industry. Biodegradable One such initiative is producing nitrogen through clean methods, from clean energy
ence in Mexico and its relevance to new solutions at our tech hubs, using a detergents and blue hydrogen – the con- sources such as wind and solar instead of fossil fuels. This green nitrogen is important
the company’s global footprint? combination of tools such as data analyt- version of gas into hydrogen by using for mobility and for the production of other gases such as methanol. The company has
Honeywell has been present in Mexico ics and AI to augment our engineering system methane reform – are two other invested heavily in the necessary infrastructure in the construction of solid oxide elec-
for more than 80 years. Today, Mexico knowledge and accelerate results. important products for our markets. trolyzer cells and filling stations. Two thirds of the applications Linde promotes help
has Honeywell’s largest employee base We have also developed a low global towards sustainability and the reduction of greenhouse gas emissions.
outside of the US, with over 12,000 What would you say are some of the warming refrigerant called Solstice. Our
employees working in more than 20 fa- characteristics of the Mexican market Solstice product line is based on Hon- Do you have a final message for Mexican’s chemical industry?
cilities in five states, underlying Mexico’s that are similar or different to other eywell’s breakthrough HFO technology. Integration will continue to be an important industry-wide target and as an industry,
importance for us from a supply chain Latam markets? These solutions are used in various ap- we must work independently of incentives or legislation. Uniting in projects that have
perspective. All four of Honeywell’s stra- Mexico has a demanding group of cus- plications, including refrigerants for su- matching ambitions and strategic visions will ensure that the Mexican chemicals indus-
tegic business groups are represented tomers which looks for cutting-edge permarkets, air conditioning for cars and try will remain stable and its supply chain will recover satisfactorily. ■
in Mexico: performance materials and technologies, so we require a lot of ex- trucks, blowing agents for insulation,
technologies (PMT); aerospace; building pertise and talent in country to address propellants for personal and household
technologies; and solutions for safety these needs. One of the similarities care and solvents for cleaning solutions.
and productivity solutions. In 2020, PMT across the Latam region is the way of do- Worldwide adoption of Solstice prod-
sales were US$9.4 billion globally.
Mexico City is the newest of Honeywell’s
four global technology hubs, with the
ing business. Personal relationships with
clients in Latin countries are vital to build
rapport, I would say much more than in
ucts has resulted in the reduction of
more than 210 million metric tons of
greenhouse gases to date; equal to
Jesús Can you introduce IQUISA’s and explain the company’s focus?
IQUISA belongs to the chemical division of Grupo CYDSA. We are a company dedi-
cated to the production of chloride, caustic soda (sodium hydroxide), sodium hypo-
others located in China, India and Czech
Republic. We have over 470 engineers
Anglo-Saxon countries. eliminating emissions from more than 44
million cars.
García Saíd chlorite and hydrochloric acid. We have five operating plants: three of them produce
hydrochloric acid, chloride and caustic soda, and two converter plants that produce
based at the CDMX Techno Park loca- Can you provide examples of Honey- bottled chloride and sodium hypochlorite.
tion, with a clear objective to find the well’s products that contribute to a What are the key themes that Honey-
most effective solutions for our custom- green economy? well hopes to address in the next two Director General How do the supply and demand dynamics of caustic soda impact IQUISA?
ers most important problems. Sustainability is one of the key pillars at years? INDUSTRIA QUÍMICA DEL ISTMO, S.A. The Mexican industry in general has high consumption levels of caustic soda. IQUISA’s
Honeywell, and in the PMT division it is The aforementioned sustainability pro- growth has benefited from a deficit in the supply of soda in our country. Mexico cu-
DE C.V. (IQUISA)
Can you illustrate the importance of the step change in our strategy. Hon- jects Honeywell is executing will offer a rrently imports between 250,000 and 350,000 tons of caustic soda. As long as we can
innovation to Honeywell? eywell UOP’s Ecofining technology is lot of opportunities, such as Ecofining, increase the production capacities of IQUISA’s plants, we have guaranteed purchases.
Innovation is part of our DNA at Hon- developed to hydrotreat vegetable oil, and I would like to see them developed
eywell. For example, Honeywell UOP animal fat or cooking oil and transform in the next two years. Surrounding this Can you elaborate on the US$120 million investment approved last year for the
(which stands for Universal Oil Products) it into 100% ‘green diesel’ or ‘green jet strategy, we aim to help customers be- expansion of IQUISA’s caustic soda plant in Coatzacoalcos?
has more than 3,000 global patents in fuel’. This is a drop-in type of product, come more connected and efficient Coatzacoalcos is IQUISA’s biggest plant and has been operating for over 60 years. The
this division alone. UOP developed most meaning you can substitute the fossil by supporting digital transformation plant was engineered for caustic soda production through the means of electrolysis
of the technologies in use today and fuel diesel for 100% green diesel, and through Honeywell’s automation and and mercury cells. However, due to the technology’s age, the plant is less efficient than
more than 60% of the gasoline and die- the engine will work exactly the same. remote operations portfolio. This helps membrane technology and consumes more energy. At the same time, mercury has
sel refined in the world is based on Hon- We already have two customers who are customers optimize operations, maxi- fallen out of preference due to its health risks. Although we worked carefully to reduce
eywell technologies. 90% of all biode- working on these projects to build up mize their opportunities and minimize mercury exposure, we were conscious of the need to do without it completely. Our in-
gradable detergents made in the world these plants in Latin America human error. Through all of this, we hope tention is to reform the plant to produce caustic soda cleanly through soda membrane
are based on our technology. Plastic circularity is also a key focus area. to address the fundamental challenges technology only.
Our innovation process starts by being Honeywell has developed a process to affecting us across the globe: reduce This latest project comes as a complement to the transformations that we have already
close to customers and understanding efficiently convert wasted plastics into greenhouse gases, minimize waste, and undertaken such as those in our Santa Clara and Monterrey plants. IQUISA’s intention
their specific needs and challenges. We a polymer oil, which can be used in the maximize efficiency. ■ is to always press forward in production capacity and efficiency. ■
14 MEXICO CHEMICALS AND PETROCHEMICALS 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 15
PETRO-
CHEMICALS
“Mexico has the potential capacity to supply more raw
materials to its chemical industry. Along with ANIQ, we have
been talking to the government, insisting that the industry is
ready and willing to cooperate with Pemex.”
- Abraham Klip Moshinsky,
Director General,
Unigel Mexico
GBR • Industry Explorations • MEXICO CHEMICALS AND PETROCHEMICALS 2021
Image courtesy of Braskem Idesa
EDITORIAL Global Business Reports Industry Explorations EDITORIAL
Petrochemicals control center Cenagas refused to re-
new a contract to transport natural gas
the company is complementing Pe-
mex’s ethane supply with imports to
Although the ongoing dispute be-
tween Pemex and Braskem Idesa con-
supplied by Pemex to Braskem Idesa’s increase utilization rates: “At Etileno tinues to negatively impact the coun-
Etileno XXI polyethylene complex in XXI we have a production capacity of try’s chemical industry as a whole, it
Veracruz state. An apparent refusal by 1,000,050 metric tons of polyethylene has benefitted some of Braskem Ide-
Braskem Idesa to change the terms of per year (mt/y). To reach that rate, we sa’s competitiors. Raúl Baz, director
a 2010 agreement with Pemex, under need 66,000 bpd of ethane. Previous- general of Grupo Petroquímico Beta
which Pemex would sell 66,000 bpd ly, we were only receiving 74% of that (GPB), elaborated: “Although the eth-
WILL THE PRIVATE SECTOR BE UTILIZATION PERCENTAGE OF PETROCHEMICAL CAPACITY IN MEXICO of ethane to Braskem Idesa at a dis- amount from Pemex, so in 2020 we ylene oxide market has been tough,
counted price, is at the crux of the is- started a temporary ‘fast-track’ initia- the government’s decision to cut back
ALLOWED TO HELP REVIVE PEMEX? Source: ANIQ
%
sue for AMLO, who believes the deal tive to import ethane.” on the ethane they were giving to
60 was shrouded in corruption and unfair Lepecki went on to explain that the Braskem Idesa has benefited GPB sub-
on Pemex. ethane arrives in a cryogenic ship to a stantially.”
Since the deal was struck, Pemex’s temporary facility in the port of Coa- Baz is referring to a new bidding pro-
50
ethane production has steadily de- tzacoalcos, before being transferred cess in place that has granted GPB ac-
clined and Mexico’s state oil company to a carousel of trucks between the cess to be the first bidders on excess
has failed to meet the supply com- harbor and the Braskem Idesa facility. ethylene oxide, allowing for stability
mitment in recent months. In January “Because Pemex’s recovery will take with clients. However, he mentioned
40
2021, Braskem Idea partially resumed time, the long-term solution should be that other solutions which the govern-
production at its Etileno XXI complex, a large-scale import terminal, and we ment have decided not to take, such
On February 19 th 2021, the Mexi- applying an experimental business expect to implement this in 2.5 years. as making use of ships which liquify
30
can government granted new fiscal model to get the plant up and running, Through ANIQ, we maintain a dialogue ethane, dropping the amount going
support worth 73.28 billion pesos although it did not state the utilization with the government and with Pemex into the maintenance of plants, and
(US$3.54 billion) to Pemex to help al- level of the unit under the new scheme. to design structural solutions like this struggling to start the crackers in Can-
leviate the firm’s finances. The stimulus 20 Speaking in 2020, Stefan Lepecki, CEO for the country’s petrochemicals indus- grejera, has created a large deficit of
is the latest in a long line of tax breaks of Braskem Idesa, elaborated how try.” ethylene oxide in the country. ■
made in an effort to reignite the failing
national champion, a top priority for 10
the AMLO administration.
In addition to tax breaks, the govern-
ment has planned to modernize Pe- 0
mex’s refineries and infrastructure, Dec ‘15 Aug ‘16 Apr ‘17 Dec ‘17 Aug ‘18 Apr ‘19 Dec ‘19 Aug ‘20
announcing a number of important Apr ‘16 Dec ‘16 Aug ‘17 Apr ‘18 Dec ‘18 Aug ‘19 Apr ‘20 Dec ‘20
projects where private industry will
be investing or co-investing, revealed structure, or to invest into Pemex as- lene, from which Plastiglas obtained
Eugenio Manzano, executive direc- sets that have been left idle due to a a co-product used to produce methyl
tor of chemical distributor, Pochteca. lack of government resources”. methacrylate for acrylic sheets. How-
“Chemical plants in southeastern “Availability of raw materials is every- ever, this stopped in 2017 due to a lack
Mexico are operating at low operat- thing in the chemical industry, and of raw materials from Pemex and, ever
ing rates and with higher costs than you have to build your plants as close since, Unigel has had to import feed-
their counterparts in other countries, to the source as possible,” reflected stock from Brazil.
which has generated many inefficien- Abraham Klip Moshinsky, noting that Jesús García Saíd, director general of
cies downstream and a commercial Mexico has the potential capacity, but IQUISA, a Mexican producer of chlo-
deficit of more than US$25 billion per industry must find a way to cooperate ride, caustic soda (sodium hydroxide),
year,” observed Manzano. “We need a with Pemex. sodium hypochlorite and hydrochloric
strong and efficient Pemex, where key Moshinsky revealed that Unigel and acid, mirrored the sentiment that a lack
raw materials originate as well as pub- ANIQ have been in correspondence of feedstock was the biggest challenge
lic policy that fosters investment by the with the government, insisting that the facing Mexico’s chemical sector: “The
private sector in the energy and petro- industry is ready and willing to cooper- country should look to encourage do-
chemical industries.” ate with Pemex on the issue of invest- mestic ethanol production and domes-
Miguel Benedetto commented that ment into infrastructure, plant mainte- tic methane gas production to boost
ANIQ has been working between in- nance and new facilities. “If this issue the Mexican petrochemicals industry.”
dustry and government to develop is not resolved, companies will have to Perhaps the standout example of
joint projects that would ensure a more keep importing feedstock, and more Mexico’s lack of feedstock revolves
reliable source of feedstock coming companies will continue investing in around a dispute between Pemex and
from Pemex. “We would like industry the US rather than Mexico,” he said. Braskem Idesa, the joint venture be-
to be able to invest in Pemex facilities, Indeed, Unigel used to have an agree- tween Braskem and Grupo Idesa. In
either to make inputs and create infra- ment with Pemex to produce propy- December 2020, Mexico’s natural gas
18 MEXICO CHEMICALS AND PETROCHEMICALS 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 19INTERVIEW Global Business Reports Industry Explorations INTERVIEW
How has the pandemic impacted resolved, companies will have to keep
Stefan What was the state of the polyethylene market before COVID-19?
Before COVID-19, we were already experiencing a low cycle in the petrochemicals
industry due to a large amount of new investments, mainly in the USA and Asia.
Unigel’s performance in Mexico in
2020?
importing feedstock, and more com-
panies will continue investing in the US
Lepecki Globally, new capacity growth during 2019 was higher than demand growth, so
that narrowed the spreads between ethane prices and polyethylene prices, direct-
We are one of the lucky ones, as there rather than Mexico. ly impacting our business. Luckily, Braskem Idesa is a very competitive player; we
is a need worldwide for acrylics used are a low cost producer with a world-scale complex, and we have flexibility to take
for visors and face guards. It is a simple To what extent has the strong gold CEO advantage of Mexico’s strategic location and its free trade agreements with other
acrylic, not a specialty grade, that we and silver market bolstered Unigel's BRASKEM IDESA countries. We export to more than 40 countries and, as of August 2020, polyethyl-
have had to produce in huge volumes. sodium cyanide business? ene prices have already recovered, increasing price spreads as well.
In March, we were uneasy about the Unigel has been producing a lot of so- Interviewed as part of GBR’s
collaboration with APLA.
prospect of having to reduce produc- dium cyanide in Brazil, and we have a How are you complementing Pemex’s ethane supply with imports to increase
tion at one of our plants in Mexico, in project to produce more, for which utilization rates?
Toluca or San Luís Potosí. However, we are analysing location options. At Etileno XXI we have a production capacity of 1,000,050 metric tons of polyeth-
in April we started to receive many The gold and silver markets in Mexico ylene per year (mt/y). To reach that rate, we need 66,000 barrels per day of ethane
Abraham orders, especially for exports to the
US and Canada. The Mexican market
picked up later. We actually had to hire
are bigger than in Brazil, so ideally we
would produce here to reduce logis-
tics costs. However, this comes down
(bpd). Previously, we were only receiving 74% of that amount from Pemex, so this
year we started a temporary ‘fast-track’ initiative to import ethane. The ethane
arrives in a cryogenic ship to a temporary facility in the port of Coatzacoalcos
Klip more workers to keep up with the de-
mand at one point, and overall, 2020
to securing raw material contracts for
ammonia and natural gas, to ensure the
and we transfer the ethane to a carousel of trucks between the harbor and the
Braskem Idesa facility. We are now importing 10,000 bpd and we plan to increase
Moshinsky has been a record-breaking year for us
in terms of volume sold.
investment is worthwhile.
Why did Unigel decide to build a new
that to reach full capacity at the plant. Because Pemex’s recovery will take time,
the long-term solution should be a large-scale import terminal, and we expect to
implement this in 2.5 years. Through ANIQ, we maintain a dialogue with the gov-
Can you explain how Unigel has ver- plant in Mexico to produce extruded ernment and with Pemex to design structural solutions like this for the country’s
tically integrated its production of sheets? petrochemicals industry. ■
Director General acrylic sheets via its Plastiglas sub- We have just finished building a new
UNIGEL MEXICO sidiary in Mexico? US$8 million plant in Mexico to pro-
We used to have an agreement with duce extruded sheets, to complement
Pemex to produce acrylonitrile for Plastiglas’ production of cell cast acryl-
which the main raw material is pro- ic sheets. Start-up testing has com-
pylene, which comes from refineries. menced, with production due to start
From there, we obtained a co-product in December 2020. As the market for
used to produce methyl methacrylate
– which is used to make acrylic sheets.
this is small in Mexico, it is a product
we are looking to export. The demand
Bernardo Do you think the public perception of the chemical industry has improved
with the pandemic?
However, this stopped in 2017 due to
a lack of raw materials from Pemex.
Therefore, we had to import feedstock
for acrylics for schools, offices and the
health sector in the US in increasing,
and we believe this is a growth area in
Álvarez The pandemic has brought a new perception of the chemical sector. As an indus-
try, we have been behind the great effort to combat the virus; we are behind the
from Brazil, which has kept Unigel ver-
tically integrated in the production of
acrylic sheets.
the coming years.
What are the company’s main focus
Certucha creation of vaccines, health treatments, safety packaging and diverse hygiene ma-
terials. We must continue to educate current and future generations in the benefits
of our products and the responsibility we have for the environment.
areas in Mexico for 2021? Executive President
How do you think the Mexican chem- Unigel is focusing its time, money and Mexico’s chemical industry has suffered a lack of feedstock for years. What
ALVEG (GRUPO IDESA)
We actually had to hire more ical industry could resolve its issue R&D efforts on specialty grade and sol- can be done about it?
workers to keep up with the of a lack of feedstock? id surface products, rather than trying Interviewed as part of GBR’s Mexico needs a strong Pemex, which is not the case today. Pemex’ economic and
Availability of raw materials is every- to compete in the commodity product collaboration with APLA. operational situations are quite delicate, so we support the government’s efforts
demand at one point, and
thing in the chemical industry, and you market. We intend to start producing to revitalize the company. Unfortunately, Pemex alone cannot meet all the demand
overall, 2020 has been a have to build your plants as close to the coloured and impact grade products in for raw materials that Mexico has. A long-term, sustainable solution would be a
record-breaking year for us source as possible. Mexico has the po- Mexico, for both our extruded and cell combination between State and private sector initiatives, as per the previous ener-
in terms of volume sold. tential capacity, but industry must find cast lines. We will also be producing an gy reforms.
a way to cooperate with Pemex. Along autoclave to produce laminated sheets.
with ANIQ, we have been talking to the We have the largest distribution net- How could the country reactivate investment in the construction segment?
government, insisting that the industry work throughout the US and Mexico, The construction segment has been one of the hardest hit during the Covid-19
is ready and willing to cooperate with and want to maintain our reputation pandemic. Given the nature of the activities, keeping a safe distance and hygiene
Pemex. However, there needs to be for delivering “just in time” products. measures has become a challenge for the different actors within this industry. The
investment into infrastructure to sup- We have achieved this by sending small infrastructure sector stopped activities for several months given the combination
ply raw materials, as well as investment volumes of many different products to of uncertainty in the face of Covid-19 and the global economic crisis we are facing.
into maintenance on current plants or customers, making Unigel the company Fortunately, the country has announced new infrastructure projects to develop in
new plants for Pemex. If this issue is not with the most flexibility in the market. ■ the following years. ■
20 MEXICO CHEMICALS AND PETROCHEMICALS 2021 Industry Explorations Global Business Reports MEXICO CHEMICALS AND PETROCHEMICALS 2021 21INTERVIEW Global Business Reports Industry Explorations FA C T S H E E T
Can you explain how Grupo Petro- facturing. We currently are certified in MAJOR
químico Beta (GPB) has evolved in re- Good Manufacturing Practices. We can
cent years? manufacture NF grade, Kosher and phar- PETROCHEMICAL
The original objective of Grupo Petro-
químico Beta (GPB) was to be a manu-
ma level certified, and we are working on
the certification for food grade products
COMPLEXES
facturer of the specialty chemical Hy- by 2022. We are now in a market that
droxy Ethyl Cellulose (HEC). This is one pays more, substitutes imports, and pro-
of the more valuable chemicals you can vides more export opportunities. The
manufacture with ethylene oxide and we leading chemical multinationals, and we
invested a significant amount of energy too, manufacture for major multinational
into developing HEC intended for shale corporations which only use companies
gas drilling. We managed to successfully that meet the highest standards.
manufacture the molecule and stood
out from other similar products. In 2008, Which government actions have af-
Raúl the demand for drilling of shale gas col-
lapsed and we decided to seek other
ventures in different commodity ranges.
fected the market?
Although the ethylene oxide market has
been tough, the government decision
Baz Things started to change for us when the
Braskem Idesa project started. At that
to make available ethane for the pro-
duction of ethylene oxide has benefited
time, ethane was still valued below the GPB substantially. There are however
GU
cost of gas, as Mexico had a surplus of other possible solutions, for example,
LF
OF
ethane. With major ethylene oxide pro- making use of ships which liquify ethane.
jects, including Pemex, there was sud-
CA
Why has GPB decided to focus on GULF
LIF
denly not enough ethane for the manu-
Director General OF
OR
facturing of polyethylene and ethylene high-end specialty chemicals? MEXICO
NI
GRUPO PETROQUÍMICO BETA (GPB)
A
oxide. It was then decided that ethylene If you go up in the quality of the prod-
oxide would be sold under the basis of ucts you are manufacturing, you become
quotas which were up for bid. At first, a strategic supplier to important indus-
there was no penalty for not taking what tries. With deficits in ethylene oxide, it
you bid on, which resulted in the prices becomes difficult to properly serve cli- Cangrejera
of ethylene oxide increasing significant- ents. In times of depression, personal Pemex
ly. The next year, a 25% penalty on all care products tend to go up in demand
the ethylene oxide assigned in the bid, as people want to feel better about Morelos
but not taken, was imposed. This caused themselves. With respect to personal Pemex
Mexico City
demand for ethylene oxide to shrink. Cu- care products, quality and traceability
rrently there is a new bidding process in is paramount. GPB is certified and has
place and, by following the rules of the good manufacturing practices (GMP’s)
contract, GPB has been able to achieve which gives us an advantage in the mar-
second place, which grants access to be ket. We have been approved for the
the first bidders on excess ethylene ox- manufacturing of products for major Independencia
Products that have a higher ide. This allows us stability with clients multinational companies, clients which Pemex
standard with respect to plus growth. only accept the highest quality and ser-
vice.
manufacturing are more Pajaritos
How did supply and demand dynamics
favored in the market, and for ethylene oxide impact GPB’s busi- How important is the export market
PMV (Mexichem)
over the last two years, GPB ness in 2020? to GPB’s business, and which areas do PACIFIC
has devoted its energies The last four months of 2020 were really you see as having high potential for OCEAN
Cosoleacaque
catastrophic in the supply of ethylene growth? Etileno XXI
to obtaining certifications Pemex
oxide, and we had a tough time retain- GPB either exports, or substitute im- Braskem Idesa
for different areas of ing clients in the middle of a change in ports for approximately 80% of its prod-
manufacturing. the philosophy of our company towards ucts. Some of the commodities that we
high specialty chemicals. Products that manufacture go to Central America, and
have a higher standard with respect to we manufacture for a third party which
manufacturing are more favored in the in turn sells a substantial amount to the
market, and over the last two years, GPB US, Brazil, Argentina, and Chile. We are
has devoted its energies to obtaining thus very diversified in terms of export
certifications for different areas of manu- markets. ■
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