"In the recent years, Oxiquim’s terminal and logistics business has grown significantly. Approximately 70% of LPG imported into Chile is handled at Oxiquim’s terminals, and we are currently in the process of building a new LPG terminal in Mejillones.”

Edmundo Puentes

GENERAL MANAGER, OXIQUIM

November 09, 2019

What are the different business areas that Oxiquim operates in?

Oxiquim operates in three different sectors: chemical distribution; maritime terminals; and resins for wood panels. Forest are one of the Chile’s  biggest export sectors after copper. With regard to distribution, Chile is a country located far from raw material sources for the chemical industry, and Oxiquim supplies the manufacturing industry with its extensive distribution network. Within the verticals that we operate in, the company is the largest distributor in Chile. We cover the entire country and have distribution centers in the Northern, Central and Southern parts of the country.

The company has an interesting pool of logistical capabilities and the technologies to support its offerings. All of Oxiquim’s facilities have been engineered in-house, which showcases our strong engineering capabilities. We also have an R&D centre for our product development.

Can you elaborate on Oxiquim’s business divisions and their supporting infrastructure?

Wood resins is a very important industry in Chile, and Oxiquim is the largest resin producer for this industry. We have a strong focus on technology in our resin business and our products are at a level of international standard compliance. Oxiquim is one of the top three largest resin producers for the wood panel industry in all of South America.

Oxiquim also offers maritime terminal services which include providing bulk liquid storage and transfer services from both specialized tankers and trucks. The company has three maritime terminals: one in Quintero Bay in the Valparaíso region, one in the Gulf of Arauco in Bío Bío region, and one in Mejillones Bay in the Antofagasta region. The Mejillones terminal supplies services for products that go mainly to the mining industry and fishing industry. The terminal in Quintero Bay is the largest open terminal for chemicals in the country. Our terminal in the Southern part of the country is mainly used for the storage and transfer of raw materials to serve the forest products industry and fuel distribution industry.

In December 2018, Oxiquim received the approval for the concession of a new port in Quintero. Is this an additional port or an expansion of the current port?

The approval for the concession of a new port is both for the expansion of the existing services, as well as the construction of an additional port. Oxiquim’s plan is to build a new pier where we can load and unload liquids as well as bulk solids. I am convinced that Chile needs this new facility to handle the increasing demand as well as to offer more reliability in terms of port services.

Quintero is a region which has been affected by industrial polution for many years and thus, we are experiencing challenges with the local communities. The sensitivity of environmental issues in the region is very high. Although the community might have to be educated on the fact, I believe the new facility would offer more reliability. On the other hand, the best way to improve performance is  through  investment and more competirtion.Our project provide bothproviding better quality services and reduction on environmental impacts.

Which of the industries that Oxiquim serves have been driving growth for the company?

In the recent years, Oxiquim’s terminal and logistics business has grown significantly. Approximately 70% of LPG imported into Chile is handled at Oxiquim’s terminals, and we are currently in the process of building a new LPG terminal in Mejillones.

We have also seen growth in Oxiquim’s resin business, and expect this upward trajectory to continue moving forward. The pulp industry is also very important in Chile. Arauco, one of Oxiquim’s main customers, has started an investment of US$2.3 billion in the modernization and expansion of one of its pulp mills. They are modernizing their existing lines and building a new pulp line at their plant which is estimated to be operational in March 2021, increasing  the complex’s annual pulp production to 2.1 million tons per year from 0.8 million ton actual capacity.

Does Oxiquim supply to Latin American other than Chile?

Oxiquim does supply to other Latin American countries, but at the moment this represents a small portion of the company’s business. We supply to Argentina and Peru and we have a subsidiary in Peru from where we serve the copper mining industry – key to the economies of both Chile and Peru. There have been many growth opportunities within Chile, and this is where Oxiquim has devoted its efforts. However, in the future, we will start looking to more aggressively expand operations into other countries in the region.

What are Oxiquim’s principal objectives moving forward?

Oxiquim plays a key role in the supply chain of industrial production in Chile. We supply the industry with logistical capabilities and the knowledge and experience of handling products, and will continue to play this important role within the value chain of the industries we serve for years to come. Mining will continue beeing also a focus for Oxiquim future growth with lithium an copper that have significant expansions to come. Investement in infrastructure, technology and our people are key for the future of Oxiquim.

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