Olivier Houel General Manager – Americas Eurotainer US
"If production capabilities exist but there is a lack of supply chain diversification, then efficiency is compromised."
What flexibility do ISO tanks offer compared to fixed infrastructure in the Latin American context?
Most of the demand is currently for transportation, but there is also a significant interest in storage because ISO tanks offer a flexible solution for both purposes. Unlike fixed infrastructure, ISO tanks can be easily moved and do not necessitate long-term investments, addressing a common constraint in Latin America. This presents a valuable opportunity to support the industry by providing a flexible solution that minimizes capital deployment. What are the main challenges and opportunities that Eurotainer sees in the current industry cycle in Latin America?
In my view, the main challenges stem from the current economic conditions, a trend seen across the globe. We observe delays in decision-making influenced significantly by economic factors and market uncertainties.
Latin America's opportunities primarily lie in its expanding market, increased investment in infrastructure, and innovations in transportation methods. For instance, there is a growing demand for ISO tanks to transport food-grade products, making it one of the most sought-after regions globally. How does Eurotainer make its equipment more ESG-compatible?
We focus on recycling and enhancing equipment safety for social responsibility. Additionally, addressing end-user concerns, particularly regarding the recyclability challenges of Flexibags, is crucial. Thus, we are increasingly involved in projects to replace Flexibags with more sustainable alternatives like stainless steel tank containers. Why do supply chain disruptions affecting China pose an opportunity for Latin America?
After COVID-19, there was a significant increase in inventory levels, but now we are seeing a decline due to the costs associated with inventory. As such, there is not much inventory left. Another possibility for adjusting capacity is to reconsider trade routes. While Asia, particularly China, has been the world's manufacturing hub, managing supply chains through the main canals like the Panama Canal and the Suez Canal remains challenging. This presents an opportunity for regions like Latin America to emerge as significant suppliers to certain parts of the world. Moreover, discussions during this year's meeting highlighted the varying unemployment rates in Latin America, ranging from 3.2% in Mexico to over 10% in other countries. Increased investment could potentially alleviate unemployment issues in the region. However, despite China's competitiveness, we do not always have to source products from there. If production capabilities exist but there is a lack of supply chain diversification, then efficiency is compromised. What is the significance of events organized by APLA for Eurotainer?
This is my third time attending an APLA event. It's always beneficial for a company like Eurotainer to participate in such events and meetings to grasp the latest trends and advancements in the chemical industry in Latin America. Unlike some of our other current markets, Latin America represents a growing market for us.