Can you introduce us to GreenChem Industries?

Throughout its history, GreenChem has experienced steady growth, expanding to 30 locations across the US and 8 in Canada. This expansion was not limited to North America; as soon as the management team noticed that some of our customers in the US and Canada were making similar demands in Latin America, we began selling products in the region. Around the same time, we decided to establish an office in the Netherlands, a crucial move for GreenChem, as more than 50% of our products come from outside the Americas.  

Our growth has been entirely organic, and this is the strategy we intend to continue following. For example, we have recently established an office in Mexico, a market we are building from the ground up. 

What are the pros and cons of consolidation within the market?

Across the region, we see large companies continuing to consolidate niche and specialty companies as well as major commodities players. For GreenChem, this process is a huge growth opportunity. With each consolidation, we have seen increased interest from customers and suppliers in new players like GreenChem. Our value as a global chemical distributor with local knowledge, speed, and agility helps us capitalize. Often, when an acquisition happens, a new company is born. This consolidation helps improve our industry, fostering institutional companies prioritizing Responsible Care, Responsible Distribution, and SARI. These companies are concerned with addressing industry challenges and the society we serve, so it’s better to collaborate with our valued partners and friends on the same playing field.

How does nearshoring benefit Mexican chemical distributors?

Since the signing of the first NAFTA agreement in 1995, Mexico has seen a massive influx of investments, pushing local industries to raise their standards. However, Mexico faces a significant challenge with high energy costs, including electricity, which are diverting investment to places like Texas or New Mexico. While Mexico benefits from its proximity to the US, it competes with other Latin American countries like Guatemala, Costa Rica, and Colombia for nearshoring opportunities.

Additionally, Mexico's petrochemical sector is shrinking, with the country increasingly relying on imports from Asia rather than producing these goods domestically. In this context, the outlook for the distribution sector is positive. When clients request products not manufactured in Mexico, we can source them globally. Often, the finished products are then exported to the US. To capitalize on these opportunities, we have had an office in China since 2018, which helps us find the best match between producers and our customers.

How can distributors help add value in terms of sustainability?

We see the industry, in general, placing a strong emphasis on meeting global commitments to reduce emissions by 2050. The chemical distribution industry plays a crucial role with green or bio-based products and actively contributes to emission reduction throughout the value chain. This includes maintaining inventory close to production, ensuring production is close to consumption, optimizing logistics efficiency, and meeting world-class standards such as those set by ACD and ANIQ under Responsible Distribution and SARI. Human resources and digital transformation play an important role in all sustainability processes.

The challenge with green products is their high cost compared to conventional options. For instance, while bio-based diesel from animal fats or maize is a promising sustainable alternative, its price can be up to three times higher than regular diesel, discouraging widespread adoption. However, there have been successful cases, and we are working with our suppliers and customers to improve adoption

What is your vision for GreenChem in the region for the following years?

In Mexico, we have a dedicated team focused exclusively on the country. In our headquarters in West Palm Beach, FL, we have a team that manages Latin America, and we also have a representative in Colombia handling the Andean region. In the next 12 months, we aim to solidify our presence in Mexico. After that, we will assess whether to expand into Colombia or Brazil with physical offices and warehouses.

Our approach combines global strategies with local expertise, rather than sending an expatriate to manage operations abroad. This ensures we are deeply embedded in the local culture and market, positioning ourselves to become a leading reference in the regional chemical industry.