Could you introduce Reuse Trading to our international audience?

Reuse Trading was officially established in 2015, but began trading operations in 2013 under the freight department of our group company Reuse NV (part of the logistics group Balguerie). In our 10 years’ experience, we grew fast, between 20% and 50% yearly, reaching a turnover in 2022 of 170 million euros and EBITDA of 9 million euros. Using my personal experience of living in different countries across Southern and Eastern Africa, we established a strong foothold in the African continent, first in industrial chemicals, and then, after 2017, in oleochemicals, so that today, we cover almost every country in Africa. In 2020, we brought our knowledge and expertise of operating the African market to Latin America, starting with more niche markets like the Caribbean and Central America. Today, we are trading in almost every Latin American country, with a lot of room to grow. Latam now represents 15% of our turnover.

What are the main product classes you trade?

Our portfolio is equally split between industrial chemicals and oleochemicals. About 80% of our industrial chemicals go into the detergents and cosmetics industry and a smaller volume into other industries like the solvent, paint, food, mining, and water treatment industry. Meanwhile, on the oleochemical side, we operate a lot on the intra-African trade. One of our strongest differentiators is our oleo portfolio with recurring contracts with many palm oil plantations and refineries, offering crude palm oil and a wide range of its derivatives. How have you found that jump from Africa and Latin America?

Many African countries share common monetary challenges, such as credit requirements and foreign currency issues, in which we possess expertise. Latin America presents a more favourable business environment, characterized by fewer payment obstacles and a lower overall risk profile. However, we acknowledge the complexity of tariffs and duties specific to certain countries in the region, which we are still in the process of fully comprehending. We have encountered fierce competition in Latin America, although the markets exhibit greater openness. In contrast to our African operations, we have prioritized becoming a trusted supplier to the distributors as we initially observed a high level of interest from them. In the meantime, we also begun to engage directly with producers for specific commodities as part of our evolving business strategy. Do you mind elaborating on your intra-regional strategy and the gaps you identify?

Sometimes, it can be easier to import lower-cost chemicals from China, India, or Europe. But I strongly believe that neighbouring countries can develop better if they trade with each other. For example, there are 54 different countries in Africa, but once you cross the border from one to another, you will find many similarities and common ground, including complementary business interests. Reuse Trading seeks to facilitate that in Latam too. One may ask, what role a Belgian trader plays in selling from Brazil to Colombia? We found a gap in these exchanges, and we put people in contact with one another, supporting regional progress. The ultimate goal is to increase connection between the two continents we know best. There is only the Atlantic in between, but unfortunately logistics is still not yet geared to this trade.

How is Reuse Trading managing the decline in commodity prices this year?

As a back-to-back trader, we have the safety net when prices drop, but since we also take positions and anticipate our absolute margins have naturally been affected by these market fluctuations. That said, our volumes have been growing, and we have not been much harmed by the current price conditions. Reuse Trading is very busy, and while we may grow a little bit less than last year due to lower prices, volumes are much higher. We intend to invest more of our energy in Latin America and essentially double our business this year. Reuse Trading started in the Dominican Republic and Central America, but we are gradually growing in Brazil, Colombia, and Peru.

Do you have a final message for APLA members?

Reuse Trading is a very young and dynamic company. We have a team of 30 people, most of whom are in their 20s and 30s, so they are all incredibly hungry to learn and grow together with the business. As the new kid on the block in Latam, we really want to make a difference. Feel free to reach out to us if you are a buyer or seller of industrial or oleochemicals.