"We want to continue strategically sourcing raw materials from regional partners and continue to develop high-quality products."

Pablo Cueva

STRATEGIC DEVELOPMENT DIRECTOR, REACCIONES QUÍMICAS

January 27, 2023

How has Reacciones Químicas grown during 2022?

Reacciones Químicas has been growing to the extent that demand outpaces our production capacity. Since the pandemic, we have been adapting strategically to overcome logistical hurdles that many in the industry have faced. There have been new regulatory developments, and we are investing time and money assuring we can meet these requirements and guide our clients through these new processes. We work closely with our clientele to ensure they can deliver products to the market that they feel satisfied with.

What products are driving growth?

Alkyds, which are coating resins, continue to grow due to continued foreign demand. In terms of product development, we are expanding our portfolio of sustainable products. First, we introduced three different resins dedicated to paint manufacturing that meet all environmental regulations. Second, we are developing coating resins that use recycled material. Third, we are making a big effort to use more sustainable raw materials. Environmental stewardship is at the core of the products that we are developing at Reacciones Químicas.

How has Reacciones Químicas reacted to supply chain challenges?

These last two years have been very complex. However, because we have been forging strong partnerships with suppliers since 2013, we have been able to navigate the storm well. Good relationships have meant that we have not faced production challenges related to sourcing. We prefer to build supply chains that are regional, which has guided our future investments and sourcing.

What factors contribute to Reacciones Químicas’ recognition as a great place to work?

Three years ago, we applied for this certification to distinguish ourselves within the industry and to find new areas of improvement. Starting in 2019, we made a concerted effort to grow the involvement of our employees in decision-making. In 2020, we created a new division dedicated to employee welfare, which has the aim of improving employee experience. We seek to understand their problems and communicate to them how their jobs are important.

How does Reacciones Químicas work with universities?

We have two types of collaborations with the University of Nuevo León, where we collaborate in research and development. We also have a trainee program with the university, and we work closely with students to give them on-site training. The relationship we have with universities makes us more competitive and allows us to give back to communities.

What is the rationale behind the goal to reduce the use of volatile organic compounds (VOCs)?

The global market is heading towards reduced VOC content in products. We notice this requirement from our clients in the US and, although it has not been written in law here in Mexico, we are sure that regulation domestically points that way as well. We believe in furthering sustainability objectives and focus on the development of ecologically friendly products. Our clients want to improve the experience of consumers; therefore, we must be ready to supply any need that might arise in the paint industry.

How is your client portfolio composed and what markets are driving growth?

75% of sales are still in Mexico, but this percentage is decreasing given our expansion in the US market. Our goal in 2023 is to increase our production capacity by 15%, which is driven by demand from the Mexican and the US market combined.

What are the top initiatives at Reacciones Químicas dedicated to sustainability?

Nuevo León suffered from water scarcity in 2022 and that made water management a key topic in the company. 90% of our electricity is derived from renewable energies, solar and wind. 10% of our energy comes from in-house panels, and we also purchase solar energy. Optimizing processes is another way in which we approach sustainability objectives. We are improving our processes and simultaneously producing quality resins in less time. We believe in maximizing efficiency while minimizing our environmental impact.

Where do you envision Reacciones Químicas during 2023 and what is your final message?

We are focused on delivering sustainable growth that does not jeopardize the company financially. Therefore, our focus is to train our personnel to give them the tools to make this possible. Reacciones Químicas is a reliable business partner, given our ability to meet client demands while meeting our sustainability goals. We want to continue strategically sourcing raw materials from regional partners and continue to develop high-quality products.

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