What are some of the standout opportunities Evonik has seen in Mexico in the last two years?

Evonik performed extremely well in 2021 on the back of significant growth in 2020. In the first year of the pandemic, our growth in Mexico slowed less than in other places globally – a direct consequence of the minimally restrictive lockdowns Mexico implemented to support the local economy, especially the manufacturing value chains for regional and export markets.

I believe that Mexico and Vietnam are the answers to the “China + One” question that the US is trying to answer. Many companies have become interested in setting up shop in Mexico due to the United States-Mexico-Canada Agreement (USMCA), as well as the European-Mexico free trade agreement. Furthermore, Mexico should benefit from the Biden administration’s new US$1 trillion stimulus package. The country has a competitive advantage in terms of logistics, labor costs are very competitive, and there is abundant young talent available. To take advantage of these opportunities, industry and local authorities should collaborate in finding a common and sustainable agenda to develop Mexico’s manufacturing sectors.

To what extent have the supply chain and logistics issues that have characterized 2021 highlighted the importance of fostering stronger regional supply chains?

One of the key learnings from the global logistics disruptions has been the importance of developing local and regional supply chains. We know that the situation is not going to improve before the second half of 2022 probably, and it is the reason why we are seeing inflation rising. Evonik is fortunate to be part of not only a global group, but also a regional platform which gives us access to a significant number of manufacturing assets allowing us to react quickly to changing market dynamics. 

How much do you think government rhetoric impacts sentiment towards Mexico as an investment destination?

Over the past two years FDI has decreased globally, but things have now started to return to pre-pandemic levels. Mexico was affected by the decrease in investment, but less than other countries. Today, Mexico is the 9th most favored destination for FDI in the world, whereas we were not in the top 10 before the pandemic. This is an illustration that despite ongoing discussions and friction when it comes to the agenda of the government, Mexico remains an important investment destination. We are not only seeing new companies entering the market, but also existing companies expanding their operations and footprint.

Why are specialty chemicals important in the transition to a circular economy?

One of the reasons Evonik continue to show significant growth is the company’s resilient and diverse portfolio of specialty chemicals. We play an important role in the market not only with the products we sell, but also with the solutions our products bring to the table in terms of new applications.

With specialty chemicals, you can find the solution to many challenges in several market segments and processes. For instance, Evonik has recently launched our pool of activities to support industries in moving from a linear economy into a circular economy with the help of specialty chemicals. The products we develop are not only beneficial from our own environmental footprint perspective, but also have a positive impact on the processes and technologies of our customers. We pride ourselves in that approximately 50% of the sales generated by our chemical segments come from products that make a measurable contribution to improving the resource efficiency of their applications.

Which initiatives is Evonik working on to foster talent and develop its workforce in Mexico?

Human capital is one of Evonik’s biggest assets and therefore we continuously implement initiatives to develop talent. This is geared to recognize the potential of our employees at an early stage, develop them, and point out possible career paths within the company. A wide range of training and professional development programs are offered at segment, regional and site level to ensure that employees are well prepared and can build upon their skills. Key goals for employee development include personal responsibility, diversity, internationality, and entrepreneurship. 

We see diversity as a key to corporate success. This means fostering creativity, trying out new things, and better understanding customer needs.