How has Reacciones Químicas evolved as a business?

Reacciones Químicas was founded in 1981 with the purpose of manufacturing solvent borne resins for the Coatings market. In 1995, we signed a joint venture with Cook Composites and Polymers, which has helped us drive our growth with technology transfer and infrastructure investments. Since 2011, we have been operating as an independent Mexican company. Recently there have been several legislative changes being proposed for coatings in Mexico and, in 2021, we expect to have new legislation that will restrict the amount of VOC’s in coatings. This will have a direct effect on our business and for that reason we have been working for several years to develop products that comply and exceed these new regulatory requirements. We are introducing new products with green raw materials and different formulations in order to be ready for these changes in the Mexican market and also to compete in international markets.

Do you view these legislative changes as a hinderance or an opportunity for Reacciones Químicas?

The legislation is more about placing Mexico’s regulatory requirements on par with other parts of the world. It is an opportunity because it pushes our R&D team to develop products that meet and exceed the new requirements and this generates more knowledge and helps us prepare for the future. We will be working with our customers to help them develop their products to comply with the new regulations. Several of them are already on trials with the new products and we have seen good results. Associations like ANAFAPYT participated in the development of the legislation, as did many other coatings manufacturers, so I think it is a well-known piece of legislation where there was input from industry. At least in the first step of the legislation, government has given the industry time to prepare and be ready for the new changes.

Do you anticipate a slowdown coming in the Mexican housing market as some are predicting? Are there other business lines that could make up for a slowdown in this area?

For the Mexican market, we specialize on the production of solvent borne resins. We are involved in several markets that include architectural, industrial, car refinishing, amongst others. Therefore, we are diversified to an extent. We see that the housing market could be affected because of the current economic conditions, but other markets have shown strength in the last months.

Can you provide us with a recap of how Reacciones Químicas has managed through 2020?

2020 has been a difficult year for everyone with the pandemic which affected everyone’s lives. Reacciones took action from the beginning by complying with the recommendations, establishing social distancing, accommodating the facilities and having many people work from home and taking care of all of our employees. When the shutdowns and restrictions on mobility where implemented, we saw a slowdown in orders and we had to adjust in order to meet what customers requested at the time. Thankfully, that lasted only three months: March, April and May. Since June, we have seen a pickup in demand. This demand has persisted for the last four months through November. In the end, 2020 will not be as bad as it looked early in the year.

Does Reacciones Químicas have plans for expansion?

At the moment, we are expanding capacity in the plant and we expect to have the new reactor online by the end of the first quarter of 2021. We are preparing to better serve our customers and meet their needs for the next several years.

What goals does Reacciones Químicas have moving forward?

We have a clear purpose as a company: “To innovate in the finding of profitable and sustainable solutions.” That is why our first objective is to finish the development of the new low VOC product lines that will meet and exceed the requirements of the new legislation. Secondly, we want to complete our expansion plans. We are actively looking to expand into the US and other markets. Finally, we want to remain a stable company that is good for our customers and our employees.