Can you introduce us to ICS Group?

We are a Mexican chemicals distribution company founded in 2011. Our core business is the distribution of organic peroxides, which are hazardous materials. Organic peroxides make up around 1% of any plastic product, so we offer niche but critical products at small volumes. ICS Group maintains its own fleet of trucks and has six different subsidiaries across Mexico and our headquarter in Mexico City. We also provide technical support for our clients. Our customer base has steadily grown, and we are practically present across the entire plastics market in Mexico; thermoplastics, rubber, fiberglass, polyester resins. We are Nouryon’s sole supplier. In Mexico, we are pioneers in organic peroxides distribution. 

What is the state of the plastics market in Mexico? 

Post-pandemic, there was slowing demand across many markets. Fortunately for Mexico, nearshoring trends have resulted in an inflow of manufacturing from abroad, which has shaped our post-pandemic recovery. As a result, ICS Group had a solid year with increased sales in 2021. In 2022, we had to deal with increasing costs like everyone else, but manufacturing has continued to grow in the country and the organic peroxides and the polymers market has performed quite well.

In what areas of the market do you see the best opportunities for growth?

ICS Group is well diversified across the entire plastics sector, so we observe industry-wide trends. The fiberglass market is performing because of its strong links to the automotive industry, as is rubber for car tires and the polymers for packaging. The automotive industry is also driving strong demand for automatic injection molding, and I expect it to grow further once Tesla’s Gigafactory in Monterrey becomes operational. There is also a growing market for resins used in acrylic, paints and vinyl, and our sales reflect this. 

How does ICS Group manage and transport dangerous substances?

There is an extensive list of regulatory requirements that the warehousing, usage and transport of dangerous chemical substances requires. ICS Group offers bespoke training and technical support to our customers on how to handle these materials, so that they are well prepared in case of emergencies. We have delivered hundreds of training sessions to thousands of our client’s employees, instructing them on how to safely manage and transport organic peroxides. Internally, our employees are extensively trained, and can thus deliver technical support to our customers.

Could you elaborate on some of the major challenges facing the Mexican chemical industry?

There is a shortage of truck drivers in Mexico. We have taken steps to mitigate this issue by investing in our human capital; due to the nature of their cargo, we offer our drivers specialty training and competitive salaries. Thanks to this, we have a low turnover of drivers. 

This shortage is part of a wider personnel issue, a growing shortage of labor for industry. Additionally, we’ve had issues with the flow of raw materials; increasing demand in Asia and Europe has diverted some flows that traditionally came to Mexico and driven up costs. That is why we need to develop these capabilities locally.

What differentiates ICS Group from your competitors?

As opposed to many of our competitors who serve only specific market sectors, ICS Group serves the entire plastics market. We manage more than 60 different types of organic peroxides that are used across the value chain, from automobiles to medicinal products. We have also invested in our R&D capabilities and can design specific products for niche needs in the market. This has allowed us to cultivate strategic, long term relationships with industry actors. 

What are your objectives for the next two years? 

We expect to be ISO 9001 certified in the coming year. This certification is increasingly in demand, especially from the big automobile manufacturers. So far, we have relied on our suppliers’ certifications, but we look forward to being independently certified and thus being able to standardize certain processes. Within Mexico, our footprint covers the entire country with the exception of the South, so we are looking to expand southwards. We have exported products to Guatemala and Honduras, where we find closely related markets, and hope to grow our exporting capabilities in the coming years.