Could you provide a brief history of Kemikals?

Kemikals was founded in 2010 to satisfy a growing need to distribute high-performance special additives paired with technical support and local service. Our offerings always prioritize sustainability, environmental friendliness and user health.

What is the source of Kemikals' strength in the Mexican market?

The number one focus of our business is our team. We consider ourselves an elite group; our customers and partners share that view. Over the last year, we have worked to integrate more team members with advanced degrees, experience and high qualifications. Our laboratory is staffed by a technical team that can perform evaluations of viscosity, adhesion, and all the properties that we know are important to the paint and dry mix mortar industry.

Can you describe the impact of the recent logistics challenges on the Kemikals?

With good communication, planning, and strategic partnerships, we have handled the challenging logistics issues of the past few years. In the year's second half, we have seen a greater market opening in China. Now we observe excellent rates of inventory, contractions in demand, and excess supply. It is an unusual moment because the global situation has been complicated logistically, but our clients have the perception that everything has stabilized.

The Ukraine-Russia war has been complicated for us. We import 90% of our products from Europe, and the conflict increased uncertainty. However, there has consistently been sufficient supply. The macroeconomic signals are constantly in flux and highly contradictory, which has led to a challenging year for the industry.

How has Kemikals positioned itself to serve the chemicals industry?

Kemikals continuously expands and complements our portfolio with high-tech, green products. Unlike our competitors, we have our own research laboratory, which allows us to provide our customers with advanced support and products of the highest caliber.

Last year, we partnered with Nouryon to bring their environmentally-friendly surfactant products to the Mexican market. We have also started working with bio-based technologies, and our portfolio in this area is continuously growing. However, commercializing these lines is challenging because of their higher price point.

What is the Mexican consumer's attitude towards sustainable products?

The trend to use green products with low-VOC was very active before 2020. However, the pandemic caused a regression in the prioritization of sustainability and the consumer's willingness to focus on environmental priorities. The consumer was focusing on survival. However, the situation is stabilizing, and clients are again interested in green, healthy technologies. Sometimes, the growing interest comes from external pressure because the client must comply with social pressures or increased regulation. In Mexico, environmental standards do not currently drive demand, but we expect the implementation of more government regulations that will push the customer toward green products. Separate from regulation, the underlying interest and general awareness of the need for more environmentally friendly products are already in the market. Every year, our percentage of sales of sustainable products has grown, and we expect it to grow exponentially. Sustainable products have added value beyond their low environmental impacts, such as deeper color or more result per amount of product. Although the price of environmentally-friendly products is high, the benefits exceed the costs when the products are evaluated comprehensively.

How does Mexico's regional position benefit the chemical industry?

The biggest advantage for Mexico is its geographic position next to the US. The economic integration of the North American countries is a significant strength, and the markets are reacting positively to the trends they see in Mexico.

At Kemikals, we constantly think about how to move further into the US market. We see a real opportunity in the additives and specialties segments. Our providers have approached us and asked if we will enter the US, particularly the southern states, and it is something that we are seriously considering.

What are your main objectives for 2023?

One of our main objectives is to position our new product lines. We will also continue to work on our value-added, sustainable product lines, which I am convinced will capture a more prominent market share segment in a few years. We want to offer the best sustainable alternatives in Mexico because these efforts align with our company values and our deep commitment to the region.