How does sustainability fit into a higher value-added model for a distributor like Pochteca?

The distribution of chemical products is a complex business that has gone from buying and selling raw materials to a business based on adding value. Currently, we undertake additional process in almost 40% of the volume we handle, either through simple processes, such as a solvent mixture, or more complex processes such as light reactions or food mixtures. As an example, two years ago we decided to enter the industrial waste business, thus complementing our portfolio of services.

We serve 22,000 industrial customers annually, and many of them ask us for support with the treatment of chemicals and solvents already used. Increasingly, the environmental requirements of our clients become more demanding, because they want to achieve zero waste and contribute to the circular economy. They ask us to be an integral supplier who not only sells the lubricant or chemical, but also collects and treats the used lubricant, solvent or acid. Today, in the solvent cleaning and recovery business, we process the dirty solvent to prevent it from ending up in final disposal centers or unauthorized dumps. We clean it through a German high-tech process, reformulate it and sell it again.

How is the impact of this recycling being measured?

For every liter of dirty solvent, we recover at least 75%. 25% of industrial waste may still seem like a lot, but a few years ago, 100% of the solvent became waste, so the progress made has been enormous. In Mexico alone, we have invested more than €1.5 million in solvent reuse capacity, and this year we are investing another €500,000 for distillation column equipment. With these capital expenditures, we demonstrate that the circular economy is not just a discourse; it is a reality that provides a return on investment for both us and our clients, in addition to the ecological return. Today we already process 8.4 million liters of solvents per year, and, with an investment of half of a million euros, we are adding an additional capacity of 1.2 million liters per year.

How do you think the demand for this service will evolve in Mexico?

Mexico is a country highly connected with international economies, especially with the United States and Canada. We have seen exponential growth in the automotive industry and other related sectors, such as the metalworking industry and the paint industry, and all of them seek this type of services for solvents. In addition, the concern for the circular economy goes beyond large corporations; it is seen throughout the value chain, which includes medium-sized or family businesses.

Apart from solvent cleaning, how are businesses entering the industrial waste chain?

The recovery of solvents, which we started in 2009, allowed us to realize the potential of this segment and evaluate our inclusion in the market for integral industrial waste management. It is a giant and highly atomized market in Mexico, with more than 9,000 players, mostly small local businesses. Our clients had been looking for corporate players with national reach that could offer these services. It took us years to process all the necessary licenses and permits, and in addition, Pochteca is the only company in the field that has the Responsible Care and Responsible Distribution certifications. The market is still incipient, but customers already want to work with solid companies to manage their hazardous waste.

Beyond waste management, how are products changing in the chemical sector?

The change is seen throughout the chain: in the personal care segment, we have more and more requests for less aggressive products in terms of health and the environment - products that have not been tested on animals, etc. On the subject of solvents, more friendly solvents are also sought. In the oil and gas market, cleaner solutions are required in the drilling and exploitation of wells, for example. We see a radical change in consumption – issues such as sustainability and the circular economy are already present in all market segments.

Has the legislation surrounding the chemical sector changed significantly?

We do not see so much pressure on the legislative side, but there is a lot of pressure from customers and public opinion in general. The change is being driven more by civil society than by the government, and we are working on this aspect. For example, in our plants we coordinate events for the community so they can come visit our facilities. The negative perception society may have about the chemical industry can be changed, showing the seriousness of our work and our commitment to the environment, community and authorities. In addition, we can project high levels of trust with certifications from ANIQ and NACD.