Can you give an overview of ICS Group's progress over the past year?

The past year has been challenging for ICS Group, requiring us to adapt. Despite difficulties, we made significant progress in forging new relationships with national and international suppliers in the Mexican market. This has led to better production costs for our clients while maintaining product quality, especially for resins, polyester, and fiberglass. We also introduced two new release agent lines for thermoplastics and thermosets. Our debut at an international composites trade show in the US opened doors to the US market and attracted interest from suppliers in Europe, North America and Asia. Additionally, we are nearing completion on our ISO 9001:2015 certification processes, with certification expected in the first half of 2025. Despite a complex sales environment, ICS Group matched its 2023 sales by the third quarter. We have enhanced our brand positioning, solidifying our leadership in organic peroxides across Latin America.

ICS Group operates within the specialized organic peroxides market, which has faced significant demand shifts this year. Organic peroxide national sales declined in 2024 due to a fall in the market of high polymers like polyethene and polypropylene production. Factors such as a water shortage in Tampico halted industrial activities for several weeks, further impacting peroxide consumption. Despite government-imposed tariffs on Chinese imports, polyester resins faced challenges from imports, particularly from China, Turkey and India. However, domestic production saw a boost as some companies focusing on US exports maintained stable output. We remain competitive due to the chemical nature of peroxides, which affects import logistics and costs, allowing us to sustain sales in Mexico and Latin America.

How do you foresee regulatory changes affecting the industry?

Regulatory changes in labor laws are significantly impacting the industry. Companies are adapting to new policies that increase wages, extend vacation time, and shorten the workweek, which are part of the implications for the Mexico-Canada-US Trade Agreement. Additionally, government investments in education are beneficial, but the push for professionalization affects the availability of skilled labor in manufacturing and production. To address this, we plan to improve our product lines to advanced technology, which requires substantial capital, expert advisors, and robust financing options. The upcoming year will be crucial because Mexican companies must balance growth with these operational changes while modernizing to maintain competitiveness.

Can you discuss the growth of industry in the south and its impact on Mexico?

We are observing a notable influx of Asian companies, including Taiwanese and Japanese firms, establishing large operations in Mérida, mainly due to economic incentives from the local government. These companies are setting up facilities that employ two to three thousand people and are focusing on producing materials for the automotive industry. Initially, they will produce precisely as they do in Asia, but they will soon seek local suppliers if prices in Mexico are competitive with those in Asia. This scenario underscores the need for international and local suppliers to adapt to avoid potential commercial tensions.

How does ICS Group differentiate itself and maintain competitive?

ICS Group differentiates itself by recognizing that the traditional buying and selling model is no longer sustainable in a competitive landscape dominated by national and international companies. We focus on providing technical services, operational support, and value addition throughout our processes. We aim to deliver comprehensive solutions that include technical advice and immediate product delivery tailored to our client's needs. We have developed our materials under the brand ‘Corpol’ to help clients optimize operations by improving production speed, reducing waste, and enhancing productivity. 

What are ICS Group’s plans for 2025?

For the upcoming year, our strategy involves forming key alliances with local and foreign companies, alongside strengthening our delivery service. Training and developing our personnel across all levels is a priority; we are creating our training courses and collaborating with suppliers for training on new materials. Furthermore, we aim to integrate technology into fiberglass and polyester resin processes to enhance production speed and quality. Compliance with legal regulations in the chemical industry is vital to ensure we handle products safely while maintaining a solid market position. Ultimately, the ICS Group is an important filter between large suppliers foreign and the local market, delivering cost-effective options and functionally viable solutions for the industry.