What were the main milestones for Dow in the region during the last few months?

Our 15 plants in Argentina, Brazil, Mexico and Colombia are running reliably and safely. More recently, our plants run at full capacity in Argentina despite the recession, with the Bahía Blanca petrochemical hub being a key asset.

In Brazil, operations in Pará and Minas Gerais state are pivotal for the most sustainable metallic silicon and siloxane production of Dow, and we remain as the solely producer of polyol in the country with a fully back-integrated chain. In Mexico, our solid operations and global value chain integration is granting us a very strategic opportunity to collaborate with our customers in all nearshoring opportunities that are arising. What makes Latin America an attractive region for investment?

The region has low emissions and strong potential for carbon capture. Brazil’s renewable energy sector is growing, supported by our solar parks and biomass projects, and benefits from a clean energy matrix due to hydroelectric power. So, they present great opportunities for Dow to decarbonize its operations while it enables growth in this prosperous sustainable context.

Latin America represents a unique position to access renewable energy at competitive prices, with bio-based feedstocks and high-integrity carbon offsetting, to accelerate our path to Net Zero.

For example, three of Dow’s 25 global plants with the highest energy consumption are in Brazil, so the multinational has built a robust energy transition and decarbonization plan for the region. And our Bahía Blanca plants aim to source 75% of their energy from renewables by 2025, with a target of 100% by 2030, and we plan to use more renewable than fossil fuels by 2050. While challenges remain in the midstream sector, such as gas transportation in Argentina and electricity transmission, the NK pipeline’s construction is a step towards improvement. How is Dow assessing investment and development opportunities in the context of friendshoring?

We are at the forefront of nearshoring initiatives, enabling businesses to harness the benefits of regional proximity and local excellence in producing innovative and sustainable materials. Nearshoring has become a game changer for organizations aiming to streamline their supply chains and drive efficiency, thanks to cost efficiency, improved communication and cultural similarities.

In Latin America, Dow has established a strong presence, driving economic, industrial and technological development. Our extensive operations, including multiple manufacturing plants, research and development centers, and offices, enable us to deliver innovative solutions and support local industries. We have a team of highly skilled professionals with in-depth knowledge of local market dynamics, providing tailored solutions and support to our customers.

Dow’s Nearshoring Program focuses on four market verticals: Mobility, Packaging, Infrastructure, and Consumer. Each vertical is led by a specialized leader and a team of commercial and marketing functions from different businesses. Additionally, each market collaborates with a commercial business leader from the North Region to align with Dow’s commercial objectives, ensuring an integrated approach to capturing opportunities and driving growth. What can we expect from Dow in Mexico, Brazil, and Argentina in the coming months and years?

In the short term, Dow sees positive trends in the global petrochemical cycle and the potential effects of a US rate cut on consumption. We expect a stable transition and economic growth in Mexico. We are monitoring economic recovery in Argentina, with improvements anticipated by late 2024 and into 2025. Our focus is maximizing plant asset utilization and safety with a long-term perspective.

We aim to be the most sustainable and customer-focused materials science company, emphasizing inclusion and diversity. Our open-door policy fosters low attrition and strong talent attraction, development and retention. We are optimistic about Latin America’s future and committed to its long-term development.

We will continue to practice our business premises: mutually dependent sustainable innovation and profitable growth. Our intentional focus on collaboration and inclusion helps us better address the region’s challenges and increase our impact to drive positive change for the world.

Our portfolio is well-positioned in the region. We have a clear, science-based, disciplined, and accessible path to achieving carbon neutrality, while continuing to increase our capacity and improve transparency and accountability in all our sustainability efforts. It is essential to our growth strategy and is part of our mission to collaborate for sustainable development in Latin America.