What are the latest updates on Quimi Corp's projects and business direction?

A significant development has been our alliance with Chinese company Rezel, which manufactures catalysts. We are now promoting these catalysts in the Mexican market, particularly for the oil industry. Strategic alliances are critical to our business and this partnership has allowed us to introduce new products. In addition, we continue our work trying to commercialize a line of bioreactors developed by or Polish partners Ekoinwentyka. It has proven to be far more complicated than initially anticipated. In Mexico, there needs to be clear legislation regarding bioreactors. 

Historically, our sales have been evenly split between Pemex and private-sector clients. In the private sector, we mainly serve polymer manufacturers and transformers, with solid alliances with companies like Pacto, R. J. Marshall, and S. I. Products. We have also focused heavily on our private clients to reduce our dependence on Pemex. 

How is Quimi Corp expanding into the health and nutrition sector?

We have ventured into an entirely new area for us: health and nutrition, specifically with a project focused on micronutrients for diabetic patients. While it is a challenging shift, we have already secured two promising projects in this area. This move into health represents a significant change for us, but we are learning and optimistic about the future. This year, we participated in the Food Tech expo. The experience was highly educational, and we attracted attention by featuring our collaboration with UNAM (National Autonomous University of Mexico) at our booth. It is a steep learning curve, but we are making progress.

What are your thoughts on the future of Pemex under the new administration?

The new administration has made a positive move by appointing technical experts to lead Pemex's operational entities. For instance, the new director of Pemex Exploration and Production, Dr. Néstor Martínez, has  a PhD in Petroleum Engineering with a long career at Pemex. These appointments offer a breath of fresh air, as the people now in charge understand the industry. However, they face considerable challenges. Pemex owes approximately US$20 billion to suppliers and carries over US$100 billion in debt. The private banking system's reluctance to deal with Pemex is deeply concerning. In any case, we are seeing positive changes, like the government's recent investment in a US$1.2 billion fertilizer plant. These are steps in the right direction, but Pemex's debt situation remains an obstacle to progress. At the end of the day, Pemex is still a critical player in our industry, but diversifying away from it remains a top priority for us.

Thanks to a productive partnership with Nacional Financiera's supply chain financing program, we do not have any outstanding debt with Pemex. This program allows us to receive early payment for invoices, providing much-needed cash flow. However, the program has become more complicated as banks have reduced their willingness to advance payments on Pemex invoices. Where they used to advance 90% of the invoice value, now it is down to 85%, and some banks have even stopped accepting Pemex payments altogether.

How is the chemical industry positioned in terms of nearshoring?

The chemical industry is well-positioned for nearshoring because the necessary infrastructure already exists. However, the main challenge we face is the availability of electricity and feedstock; the challenge remains that the Mexican market itself is undersupplied, primarily because Pemex is not operating efficiently, so there is not much surplus product for export. The Mexican government has reiterated that 54 % of electricity must be produced by the Federal Electricity Commission (CFE), leaving only 46% to the private sector. This creates uncertainty, and investors are cautious until more explicit rules are established. Additionally, issues like the lack of adequate infrastructure—such as railways, highways, and water treatment plants—are critical barriers to attracting more investment to Mexico.

Can you elaborate on your company's strategic priorities for 2025?

Our strategic focus for the coming years is on consolidating projects related to nutritional supplements and continuing to work on reducing our dependency on Pemex. We are committed to pursuing bio-reactor projects, although this has proven more complicated than anticipated due to the lack of stringent legislation, as seen in Europe, particularly concerning volatile hydrocarbons. However, we will maintain our focus on these areas and execute the four disciplines of execution to ensure success.