Can you update us on Evonik’s activities and recent news in Mexico?

We are witnessing significant growth driven by the expansion and footprint of our clients here, alongside a wave of new companies investing and expanding under the framework of nearshoring, despite current and ongoing discussions around tariffs and geopolitics. 

Now that there is a new government in place in Mexico, what would you say are the chemical industry’s main priorities when it comes to infrastructure and regulatory improvements?

The chemical industry in Mexico, provided we secure the necessary conditions to attract additional investments, should be able to develop further the social conditions in the areas where we operate, and it would contribute to the goals and objectives of the new administration in the country, since a strong chemical industry would be able to improve the wellbeing of many people, generating well paid jobs and keep working on the sustainability of our products and processes. To achieve its maximal potential, the chemical industry requires conditions to impulse the whole industrial development in a sustainable and competitive manner, incentivizing investments and local manufacturing. Key elements to support the chemical industry are: sufficient, sustainable and competitive supply of natural gas by increasing the local production; strong and competitive supply of raw materials by Pemex; and a truthfully and competitive electricity supply by CFE incorporating minimum 40% renewables in the whole energy matrix.

Can you update us on Evonik’s commitment to innovation?

Evonik embarked on the next phase of its strategic business transformation in 2022. As part of Next Generation Evonik, sustainability is becoming an integral element of important core processes such as portfolio and innovation management, production and technology, and human resources work.

Therefore, we set ourselves ambitious new sustainability targets in the reporting period. These relate, for example, to the transformation of our portfolio and the continuation of our climate strategy for the period 2021 through 2030, in keeping with our commitment to the Science Based Targets initiative (SBTi).

In view of the transformation requirements made on our business activities, we draw a distinction between market-driven, location-based, and human resources influences. In line with this, our Sustainable Corporate Strategy is focused on three core processes: Next Generation Solutions (market perspective), Next Generation Technologies (asset perspective), and Next Generation Culture (human resources perspective). Between 2021 and 2030, we aim to invest more than €3 billion in the growth of our Next Generation Solutions, in other words, products and solutions whose sustainability profile is above or even significantly above the market reference level. In the same period, we intend to invest €700 million in Next Generation Technologies. These are, in particular, measures at production plants and infrastructure that are geared to our goal of further reducing our CO2 emissions. The aim of Next Generation Culture is to establish sustainability firmly at all levels of the human resources process—from recruiting through training and continuing professional development to incentive systems and ideas management.

What are your expectations for 2025?

The North American market has proven to be more resilient than anticipated. Recession concerns did not materialize as expected in 2024, and North America’s resilience has benefited the demand from many of our clients. Mexico continues to drive a robust export and business development agenda in manufacturing including automotive, aerospace, personal, oral and home care products, and appliances, among many others. 

Looking ahead, besides the uncertainty around geopolitics, tariffs and the renegotiation of the USMCA, in Mexico 2025 will continue presenting significant logistical challenges in terms of cost and efficiency. We are facing unprecedented simultaneous disruptions affecting this segment, such as conflicts in Ukraine and the Middle East and climatic challenges in the Panama Canal, among others. These situations underscore the importance of our relationship with service providers to improve efficiency.

2024 was an election year for Mexico and US, something we welcome with optimism since it is clear that the chemical industry is a crucial and indispensable vehicle for the country's development. Despite some cloudy skies currently, the regional landscape is expected to positively impact the solid North American bloc comprised of the US, Canada, and Mexico, which operates like a closely integrated entity. This interconnection fosters synergies, growth, and development across various sectors.