How important is mining and Chile for Flexco?

Mining represents well over 60% of our business in the region, and Chile is about 50% of our total regional revenue. It is from here that we coordinate the rest of our activities in the region, and where Flexco chose to build our first factory in Latin America. Our business has traditionally had a strong focus on the aftermarket, collaborating with key stakeholders such as Codelco. Our accessories line is the fastest growing, being suppliers to Codelco, BHP, Sierra Gorda and Anglo American, just to name a few. OEMs are also a rapidly growing business for us in Chile, working with important equipment builders such as FAM, TAKRAF, and TNT, among others.

What are the main challenges for the industry, and how are you facing them?

Among relevant challenges is a lack of qualified manpower. Productivity is one of the greatest challenges, as decreasing ore grades require transporting larger bulk faster. Not all companies have the expertise to tackle these challenges, but Flexco, being a global company with experience in all relevant jurisdictions, can offer solutions in this regard. This is a particularly serious challenge that can entail enhanced wear of materials.

How do your products contribute to safer mining operations?

First of all, we have a large staff of seasoned professionals who can advise on a wide range of matters related to conveyor belts and provide effective solutions to the challenges our customers face every day in their operations. Once the problem is identified, you need the right solutions to fix it most safely and effectively, and this is where our technology regarding designs, materials, or predictive detection comes in. We have an engineering team in Chile that works closely with our customers and distributors to develop bespoke solutions, which our factory in Chile can enable immediately, a capability unmatched by any competitor.

What new technologies are you incorporating into your products?

We are working towards enhancing the durability of our products while making them easier and safer to use, so that they can operate more autonomously, and maintenance can be done without stopping the conveyors. We were the first company in our sector to introduce technology to monitor and detect potential failures before they happen. Our devices use cloud applications for data collection and diagnostics concerning the equipment condition, which allows for more proactive and efficient maintenance.

How do you incorporate ESG concerns into your policies and products?

Our manufacturing processes are very sustainable thanks to cutting-edge machinery, and we generate very small amounts of waste, as we monitor for that. On the other hand, our products, including the Elevate technology, are designed to support and provide valuable insights to our customers to avoid spills and minimize the risk of fires, which are also vectors for significant environmental problems. Flexco has a long history of upholding the highest standards of values and building a strong culture.

What are the differences between operating in Chile regarding other jurisdictions?

Argentina, for example, has its unique political challenges. Brazil is huge, and they favor local production over foreign, also demanding more constant supervision of operations from suppliers. Peru has similar potential and challenges to Chile, but many of their sites are geographically remote, making it more difficult to engage and develop solutions for them. On the other hand, in Chile the industry is more formalized in general and keener on adopting new technology. Both the mindset and the equipment for mining in Chile, especially for copper, are world-class.

What are your plans for expansion?

OEMs are a sector in which we are very interested in keeping our focus. Last year, we duplicated our output by expanding the factory in Santiago; thus, we have the will and the possibility of growing aggressively. We have opened offices in Brazil and Peru with teams on the ground in both countries, as well as in Argentina. Those are important poles of growth for us, and we are investing. In Chile, we also have many opportunities to continue adding value for our customers. We continue to invest in personnel and technology to improve our processes, also to form a knowledge hub to use data from our machines to improve our customers´ operations.