Can you provide an overview of Helm’s activities in Mexico’s chemical industry?

Helm’s chemicals division opened 17 years ago. We are traders and bring raw materials to Mexico for many industries. In 2021 we are expecting to reach 90,000 tons of products into Mexico, after having 70,000 in 2020, so the year has been positive. Glycol accounts for almost 50% of Helm’s product volume in Mexico, but we have also diversified the business. Our core business is bringing materials in ship-sized dimensions, with all the managing and logistics that taking those materials down to a tanker truck for the client entails.

Which industrial sectors does Helm provide chemical products to?

We work with the automotive industry with glycols for antifreeze to cover the lack of local production, as well as supplying resins and handling big volumes of solvents like isopropyl alcohol and acetone. Some of the solvents are also used in paints and coatings, so we provide different raw materials for paint manufacturers.

We also supply phosphoric acid for the agricultural and mining industries, and are now entering a new line of business for us, caustic soda, which has many uses in personal care.

To what extent have Helm's logistics and distribution services in Mexico been impacted by logistics disruptions in 2021?

Helm has agreements with suppliers to mitigate the impact of logistics price increases, but the biggest challenge in 2021 has been delivery times. Lead times for some products tripled, and things became even more complicated during the winter storm in southern USA in February. Far from the just-in-time model the industry was used to, companies had to stock up to cover themselves, and our duty was to manage that. We largely depend on China and the US, and freight rates from China increased four and five-fold.

Today (November 2021), we are planning for materials that will arrive to Mexico in three to four months, accepting that freights are not changing. However, Helm’s clients can rest assured that they will not be as affected by any of these external factors because of our strategic positions in the country with solvents and solids and our safety stock. The critical situation in product availability and rising demand has caused clients to realize that having stock is the number one priority. Some clients are even changing their formulas or developing new materials to make up for these adversities, as this is not a short-term situation.

What are some of Helm’s latest sustainability-driven investments in the Americas?

Most of Helm’s products at the moment are derived from oil, natural gas, or even coal if it comes from China. However, in alignment with the move towards green products, Helm has projects such as the first renewable BDO facility in the USA. Companies need to find a balance between what the client is used to paying for traditional products, with what they are willing to pay for green alternatives, because green products are currently more expensive due to costs, production, and availability. Such a context makes many clients reluctant to pay, even if they work perfectly, so I believe the transition will be gradual. We are also working together with producers of polyester and polyethylene terephthalate to promote recycling to reduce their carbon footprint.

Which areas of the business in Mexico does Helm see as having high potential for future growth?

We are seeing great progress in the automotive sector with glycols, polyethylene and resins. Acetone was the first chemical Helm worked with in Mexico, and remains an important product in the company’s portfolio. In resins, we are developing the styrene business, integrating Helm’s services with producers, suppliers and logistics routes.

Today, communication with clients is as important as it has ever been, to forecast availability and tell them about a month in advance. This way of working is why Helm has good credibility with clients – we can be trusted to comply with our commitments and guarantee the flow of products in Mexico’s chemical supply chain.