Can you update us on allnex's activities in Mexico in the past year?

We continue with our strategic plan to take advantage of the nearshoring trend. We recently established a tolling arrangement to produce goods for export to the US and, further down the line, for the domestic and North LATAM markets. We are growing in Mexico across many sectors, mainly thanks to demand from the automotive industry. There has also been interesting growth in electronics and our composites business. Until last year, we were only focused on coatings; this year, our company's strategy has changed and we have a complete segment for composites, adhesives and other businesses that have to do with car tires and additives. We built a large division for additives in the company. 

We continue with solid growth in our liquid resin portfolio, which is part of what we are doing with the automotive industry.  Our crosslinkers also perform well in the packaging, metallurgical, and industrial sectors. We also sell powder resin for painting and construction applications and metal goods coatings. We also plan to establish a service center in Guadalajara, a technology hub in the country, to focus on the Americas and complement our global service hub in Riga. Mexico is a strategic country; it is cost-competitive and has well-qualified human capital. The cost of a service center in Mexico is lower than anywhere else in America.

Can you discuss the main challenges that investors are concerned about in Mexico? 

Mexico is not without risk. There is an issue with security and criminal activity, which can impact companies through extortion and theft. It also presents logistical challenges, making transporting goods less safe and more costly. Many companies have to turn to security companies to guarantee delivery which is an added cost. The issue of insecurity is not the same everywhere, however, and some states stand out, particularly Sinaloa and Michoacán. On the regulatory side, the judicial reforms proposed by the current government are a source of concern for investors and businesses.  Many feel that they're effectively changing the rules mid-way through the game, which could be troublesome by watering down the juridical security needed for businesses to operate. Incoming FDI flows have stagnated in the past year. 

How is the Mexican automotive sector developing? 

Many different investments are coming into the automotive industry in Mexico, from Nissan to BMW, and many Chinese carmakers, including BYD. As electromobility and EVs become increasingly important, our business will surely benefit. The more sophisticated and higher quality the car is, the more specialty products and elaborate paints and coatings it will require to be produced which is where we come in. Premium automakers demand paints with higher solid content and more sagging control.   We are specialists in this and have patented products. Leading automakers are also looking for sustainability, which is integral to our growth strategy. Circularity for us is very important.   

Can you discuss allnex's approach to sustainability?

 One of our key sustainability goals is ensuring emissions and sustainability targets are being met across the value chain, including by our clients and suppliers.  We recently launched a new product called the EBECRYL 8466 for the textiles and leather segments, which is a new venture for us. We are expanding, but sustainable growth is essential. Our current owner, PTT Global Chemical, is a highly sustainable company, and has led the Dow Jones Sustainability Indices for several years. All the companies that make up the group have a very high level of sustainability, and we are pleased to have been awarded the platinum EcoVadis recognition. Our product design revolves around sustainability. We are investing in new designs that use less solvents and less water. It is an integral part of innovation and developing new products at allnex.  The market guides this trend. All our multinational clients have sustainability criteria that don't depend on one single country; they depend on companywide directives.  

What is your outlook for 2025?

We want to keep growing above GDP in Mexico, taking advantage of the strategies and the synergies we have created across the automotive, packaging and wood industries. We will continue pursuing these synergies, bringing sustainable products to our markets.