What is the history of Plastiglas in Mexico?

Plastiglas joined Unigel Group, a Brazilian group founded in 1964, in 2006. Unigel was founded as a company producing sheets acrylics in Brazil. In 2008, Unigel replicated its business in Mexico with a close relationship with Pemex, which began to supply raw materials. This relationship continued until 2016, when Pemex suspended the supply of raw materials. Since then, we have worked with different suppliers.

Today, our business is focused on cell-cast acrylic sheets, which we sell to clients in the US, Canada and export to other countries. We have two plants, including one in Ocoyoacac, our principal plant with a capacity of 14,000 tons per year. We also have a plant in San Luis Potosi that produces 6,000 tons per year.

What were your sales metrics for 2022?

We export 70% of our acrylic sheets to the US, Canada, Central and South America. Today, Unigel Mexico has revenues of US$170 million, with participation in acrylic sheets covering 40% of the market in the US and Canada, and 60% of the Mexican market. Last year, we reached our production and sales record.

How have high fuel costs been both a challenge and an opportunity?

The fuel prices in the US, the lack of drivers in the US and Mexico, and inflation have increased our prices. However, the cost to transport between Asia and the US has significantly increased, which has contributed to Plastiglas having a record in sales as a more attractive supplier. Plastiglas still did not experience record profit due to high costs. It’s not that the market is growing continuously, but that we are returning to the normal trajectory of the market before the pandemic.

How have you supplied raw materials since Pemex stopped supplying Plastiglas in 2016?

After Pemex stopped supplying raw materials to produce MMA (methyl methacrylate), our main raw material, Plastiglas started importing the raw material from different sources to keep the production. In the end, we switch our condition from local producer to importer.

Did the challenging energy landscape in Mexico impact production in 2022?

We have supply contracts of electric energy and natural gas. At the beginning of last year, we had a problem with energy due to the freeze in Texas, which reduced the gas supply and increased the prices of natural gas for our plants. The following month, the prices stabilized. Our relationship with CFE and Pemex is excellent, and we have not had problems with the electric energy supply. We understand that occasionally, there simply is no natural gas to supply, and in this case, we use other fuels so substitute the gas when necessary. Fuel as diesel is not economically viable in the long-term, but it allows us to continue production in the short term. We are planning investing in renewable energies to power our plants.

Could you discuss your EcoGreen line and sustainability activities?

Sustainability and ESG are essential to Plastiglas, and we have always focused on the environment. For more than 45 years, we have had a recycling program for acrylics sheets. Last year, we launched a product called EcoGreen, which is made of 100% recycled material. In addition, at the end of 2022 and January 2023, we have focused on improving our usage and re-usage of water at our plants, introducing a new production process that will allow us to use less and reduce the water temperature.

What is your strategy for the next year?

We stand out because we offer a wide range of technical and other services that enable us to provide clients with the support they need. We aim to maintain and expand our market share as the leader in Canada and the US and increase our market share in Mexico. We also want to continue growing in Central and South America. Last, we want to enter the European market. We have minimal sales there, and we want to develop a real presence. This year, we can grow in Europe with our EcoGreen line due to the European preoccupation with sustainability. We will maintain our timeliness and quality to position ourselves as a global player.