Can you introduce us to Suministro de Especialidades and its history?

Suministro de Especialidades (SDE) is a leading distributor of high-performance materials specializing in rubber, plastics and adhesives. With over 35 years in the Mexican market, the company has developed a strong reputation locally. In late 2023, Suministro de Especialidades joined the Formerra family, combining our local expertise with Formerra's global network. This strategic partnership enhances our ability to serve customers across Mexico and Central America. We operate three in-country warehouses and maintain offices and commercial resources in key locations including Mexico City, Monterrey, Querétaro and Guadalajara. Our lab in Mexico City offers vital services to our customers, including expert consulting, batch testing and the development of custom formulations. This is particularly important for industries like automotive, where precision and quality are critical. Our lab ensures that the products we develop meet customer-specific requirements while adhering to all safety and quality standards. This service differentiates us in the market, allowing us to tailor solutions to each client's unique needs.

By combining local expertise with Formerra's global resources, we have expanded our portfolio from 1,000 SKUs to 5,000, allowing us to serve a broader range of industries and ensuring that we remain competitive in a market of increasingly demanding global standards. This partnership gives us access to a global network, improving our market position and enabling us to deliver advanced products and services. It also enhances our technical services, including custom formulations and batch testing in our lab. The combined resources allow us to invest more in infrastructure and ensure a customer-centric approach. As we solidify our current portfolio, we aim to explore new verticals and expand into additional industries, leveraging Formerra’s global reach to support our growth.

How do you view the Mexican economy and its prospects for 2025?

The Mexican economy, particularly in the automotive sector, shows strong growth prospects for 2025. The trend of nearshoring and Mexico's proximity to the US and Canada continues to drive growth. Many of our customers are increasing their investments, reflecting confidence in Mexico's economy and its strong trade relations with the US, Europe and other regions. We offer various materials, from standard natural rubber to premium materials like Teflon and Viton. Additionally, we supply advanced adhesives like Cilbond, used in applications such as brake pads and have strong relationships with key suppliers. 

Can you discuss the role of sustainability in and how it affects SDE's offerings?

We can offer eco-friendly materials, including those with recycled content or designed for a circular economy. As the industry increasingly prioritizes sustainability, we continuously seek new ways to meet these demands, such as exploring biodegradable polymers and innovative materials that minimize our carbon footprint. In collaboration with Formerra, we are working with suppliers to offer materials that support sustainability goals. This includes products with recycled content, such as post-consumer recycled (PCR) and ocean-bound plastics (OBPs). We are also exploring biopolymers derived from plant-based sources and recycling processes. 

Can you discuss the importance of having local partners when operating in Mexico?

A strong local presence is critical for understanding the unique needs of the Mexican market and providing fast, reliable services. Our deep knowledge of local conditions allows us to react quickly to market changes and maintain strong relationships with suppliers and customers. With our deep understanding of Mexico's infrastructure—ports, railroads, and warehouses—we are well-positioned to navigate the complexities of product distribution across the country. 

How does SDE view its position in the market for 2025?

Looking ahead to 2025, we are optimistic about our growth prospects. As part of the Formerra family, we expect to expand our product portfolio, strengthen our partnerships, and increase our service offerings. We will focus on improving operational efficiencies and enhancing our ability to meet the growing demand for specialty materials. Through innovation and a continued commitment to sustainability, we aim to remain a leader in the market and continue providing excellent service to our customers. While the automotive sector will remain a significant part of our business, we are exploring opportunities in consumer products and other industries. Continued investment in facilities and logistics will increase our capacity to serve a broader range of customers.