Can you update us on Kemikals’ operations in 2023?

2023 was a challenging year for the industry due to an unfavorable dollar/peso exchange rate, and all companies that import and export materials were affected by the volatility. Despite this, we achieved record sales this year due to our commercial strategy, which has focused on providing value-added products and solutions to the market. Cost competitiveness is crucial to so many of our clients. We stress that there is a cost/benefit analysis that should be considered, and we want to be able to offer our clients the most competitive and beneficial products. That is where we can add value.

There is a strong tendency towards sustainable products that are environmentally friendly and healthy for end users and workers in the production line. This includes both finished products and the inputs used to produce final goods. We have oriented our company around sustainability, and our high standards and ethical focus allow our clients to successfully navigate the complexities of these products. 

What is the process of introducing new products in the Mexican market? 

Many of our suppliers are based in Europe and operate within highly complex and regulated markets. As the exclusive brand representative of their products in Mexico, we are more than simply distributors. Our partnerships with suppliers are extensive and deep because products and technology from Europe or Asia have to be adapted to the specific market conditions of Mexico. We help them to ‘tropicalize’ their products for local needs. We have a dedicated commercial director and technical team in constant communication with our suppliers, working closely with them to adapt their products to the Mexican market. For example, there is currently a coalescent agent in our product portfolio that is being widely adopted in the Mexican market due to local regulatory changes; although it has been part of our portfolio for a while now, the conditions are right today.  

How can Mexico take advantage of nearshoring investment opportunities?

Nearshoring in Mexico is an excellent opportunity, giving our country an international spotlight and bringing the significant economic benefits. Global companies have the appetite to set up production here and gain superior access to the US market. Nevertheless, there are several challenges that we must overcome to take full advantage. Structural limits to our energy and water infrastructure capacity could cap the number of companies that can realistically base themselves here. There will also be an increase in competition with all this incoming business, and local companies will benefit from being adaptable and responsive. Preparation for this transformative period is essential. 

What significant challenges have distributors faced in 2023?

The super peso has been a major challenge for importers and exporters. However, paints manufacturers have benefitted from relatively lower raw material costs, as this exchange rate was not expected when budgets were drawn up in the previous fiscal year. Inflation, though slowing, remains a legitimate concern.

How is Kemikals implementing its sustainability agenda?

Our day-to-day carbon footprint as a distributor is comparatively miniscule, and we make a greater difference in the sustainability agenda through the innovative products and technology we bring to the Mexican market. We have very high standards, and our products are ethically sourced, environmentally friendly, and safe. We are very transparent about their properties and will not promote products that do not align with our values, even if they are allowed under current legislation in Mexico. Kemikals is thriving at a critical moment for the sustainability agenda in Mexico. Many companies have set clear targets and deadlines for 2025, and we are seeing urgent activity across the industrial sector as these companies strive to meet those goals. 

What are the company’s commercial objectives for the next two years? 

Given our efforts, Kemikals has a concrete objective of 30% growth in revenue in the next two years, which is a realistic target. We aim to broaden the scope of our relationships with clients and keep specializing in the coatings and construction industries, offering our clients more cutting-edge solutions. Many distributors attempt to cover as many segments as possible, but we have decided to focus on our areas of expertise. This includes increasing our value-added, sustainable specialty chemicals lineup. Our client’s priorities and concerns are foremost on our minds.