In May 2024, Brenntag announced the acquisition of Quimica Delta in Mexico. What is its significance, and where does Brenntag see the most potential for organic and inorganic growth?

Besides commercial initiatives, M&A is an integral part of Brenntag’s growth strategy. This is particularly important in Latin America, where Mexico and Brazil have significant growth potential.

Each country in Latin America has unique strengths in different business areas. For example, the Southern Cone presents distinctive opportunities in the mining sector. In Brazil, we hold a strong position in petrochemicals, agrochemicals, fertilizers, and energy services, including the oil market, which, due to ongoing investments, is ripe with opportunities. Meanwhile, Northern Latin America boasts dynamic markets in personal care, agro-fertilizers, construction, and paints. This rich diversity across the region makes our business stimulating and rewarding.

What approach did Brenntag take to adapt to the chemical market conditions since H2 2023?

Inflation in the region has not been controlled as expected. In addition, the industry has been facing a decline in chemical prices, which soared during and after the pandemic. Prices have significantly dropped since mid-2023, along with logistics costs. The “destruction” of demand that characterized the years before 2023 is a clear example of a “return to normal,” but it comes with many challenges. Such a situation forces us to become more efficient and cut costs while maintaining value for our clients and the profitability of our operations. Despite these difficulties, we remain optimistic. While the current market climate is tough, it is necessary for future stability.

Why is it essential to adopt new technologies within the distribution segment?

While the human and talent factors remain crucial, information management and digitalization are essential within the chemical distribution sector, like in any industry today. The amount of information generated in chemical distribution can be overwhelming. The challenge is not the quantity of information but how it is segmented, managed, shared, and used to make forecasts, demand patterns and ultimately management decisions.

As such, digital strategy is a core pillar for us since it drives internal improvements and improves our client agility. By integrating advanced technologies, we can better anticipate market needs and streamline our operations, ensuring we remain competitive and responsive in a dynamic industry. To achieve this, we have launched several global initiatives with substantial data analytics and artificial intelligence investments.

How does Latin America serve as an example of sustainability within Brenntag’s operations?

For Brenntag, Latin America is a leader in sustainability, having already met our 2025 carbon reduction goals by 2023. In mid-2024, our site in Querétaro, Mexico, the largest in Latin America, became self-sufficient and 100% reliant on solar energy. Additionally, our site in Vaca Muerta, Argentina, has been operating entirely on renewable energy since 2022. And these efforts are recognized. Brenntag has been the only chemical distributor worldwide to receive a platinum rating from EcoVadis in two consecutive assessments, improving our score each time.

Sustainability, for us, also means carefully analyzing which products should not be present in the future due to their ecological impact. We aim to raise awareness in Latin America about the limited future of certain chemicals. The region lags Europe and the US in this regard, especially given the lack of governmental regulations. Our global view and expertise help us here. We also focus on finding suitable substitutes for these molecules, responding to our client’s growing interest and need to replace products recognized as unsustainable.

Could you provide our audience with a final message?

Despite the challenging times we are navigating, we want to continue implementing our “Triple Strategy” to be in good shape for 2025 and beyond to meet market needs effectively. Brenntag will maximize the value of investments made and those to come, ensuring that the markets we serve in Latin America gain a much more significant position within Brenntag. Despite each country’s diverse adversities, I am a fervent believer in Latin America due to its talent and business strengths. The region holds significant growth potential; we just need to capitalize on opportunities and persist in making the most of them.