Can you provide an update on Evonik’s operations in Mexico over the last year?

In Mexico we see opportunities to expand across all our 15 business lines, from feed and food to healthcare, personal care, home care, automotive, aerospace, construction, and others. Mexico provides an active and diverse base of industries that give us continuous space to grow in. Nearshoring is nothing new to Mexico, where for many years Tier 1 and Tier 2 companies, especially in the automotive and aerospace sectors, established a presence in Mexico. The difference now is the level of sophistication and tech-driven facilities being built. The USMCA, but also geopolitics and the pandemic, pushed for a rethinking in the organization of supply chains, and Mexico stands out as an attractive destination. 

What are the main trends that Evonik is witnessing in the specialty chemicals space?

Current market conditions are an opportunity to develop new technologies and applications with additional competitive edges sought after by our customers, including savings improvements and sustainability properties. In times like these, we see a greater need to co-create with our customers and together work towards the de-fossilization of society, and safeguard the necessary energy transition.

What are the greatest challenge facing Mexico’s chemical industry in 2024?

The growth agenda for the chemical industry in Mexico starts with a sustainable increase and expansion of the availability of key raw materials originated by natural gas and downstream such as ethane, ammonia, propylene and ethylene oxide. The offer of natural gas and petrochemicals in Mexico is not sufficient to support the whole market, so we end up importing our needs. 

Currently, the industry imports almost 70% of the petrochemical requirements. Our proposal as chemical industry in Mexico is to increase the local production of natural gas and petrochemicals in the south and southeast region, and to promote the modernization and further development of the infrastructure in the country such as land transportation, rail, ocean ports and customs. To aim for cabotage ocean transportation with international carriers, either on the pacific side or the Atlantic/Caribbean coast.

How can Mexico best take advantage of growth driven by regionalization trends?

There is no free lunch with nearshoring. Mexico will need significant investments in the areas of security and transport infrastructure to be able to keep up with the growth we expect to see in manufacturing and exports. More industrial parks and warehousing capacity are also needed. 

A more clear and robust agenda for the energy matrix transition is also key element of the strategy, with the right regulatory, and obviously the raw material supply security for the chemical industry, as well as the further development of the talent pipeline in the country to keep pace with the extraordinary growth expected. Nearshoring would keep us busy the next 10 to 15 years. We are about to design the future of the Mexican economy and society in the next 20 years.

Can you discuss Evonik’s approach to community responsibility, including the ANIQ 2023 Excellence Award?

In Mexico, we have to keep improving our product offerings and services. By harnessing our creative impetus and unbiased thinking, we create sustainable products as they are more efficient to manufacture and have longer useful lives. We will be ready for the ongoing trends and the future by teaming up with our customers in Mexico, co-creating with them.to We aim to play a key role in the energy transition while securing the sustainability goals of our ecosystems.

What is Evonik’s strategy for the next two years?

Evonik is a leader in innovation. The combination of innovative prowess and customer proximity is a critical success factor for Evonik and a driver of profitable growth. In the growth engines with relevance for us - specialty additives, animal nutrition, smart materials, and health & care - we have identified promising innovation growth fields in very attractive markets with exceedingly high growth rates and are leveraging these to achieve our ambitious goals.

The aim is to generate more than €1 billion in additional sales in these areas by 2025. The six growth fields focus on highly attractive markets which Evonik can optimally serve with new products and solutions based on its core competencies, while we are leading beyond chemistry.