What was the outcome of Grupo Idesa's activities at the close of 2023?

During 2023, Grupo Idesa faced numerous challenges typical of the petrochemical cycle and the slowing global economy. Despite a challenging year and results that fell short of expectations, we achieved a significant milestone with a substantial capital increase supported by one of our main shareholders. This strengthening of our balance sheet has allowed us to confront market adversities more resiliently and prepare ourselves for ongoing challenges in 2024. Internationally, demand continues to be affected by excess capacity, particularly in key regions like China and US, which influences the supply and prices of our products. Thus, we are focused on adapting swiftly to market fluctuations and maximizing our opportunities in this competitive environment. Have you seen signs of improvement in demand and operations in Mexico?

Domestic demand remains generally stable, with variations across sectors. Economic growth in the US has benefited Mexico by sustaining demand, though moderately. We have not yet perceived clear signs of improvement in the industry, and we expect the recovery in the petrochemical industry to potentially begin more distinctly towards the end of 2024. Do you see benefits from the "nearshoring" between the US and Mexico?

Nearshoring has the potential to significantly benefit Mexico in the coming years, although its full impact is not yet fully perceived. With the recent Mexican presidential elections and the new administration's arrival in October, we expect to see positive signs of investment in this sector, which could bring substantial benefits to the country. What is ALVEG's importance within Grupo Idesa?

ALVEG is part of our distribution division, which is strategic not only for facilitating the marketing of our petrochemical products, but also for meeting the growing demand for various chemicals in Mexico. In which specific areas are the research and technological development centers of Grupo Idesa in Coatzacoalcos and Irapuato focusing?

Our primary research and development activity is concentrated in Irapuato, where, alongside the alkylamine plant, we have a technological center focusing on enhancing the processes of our existing products. Additionally, the Center for Technological Development and Innovation (CDTI) supports ALVEG in formulating solvents for various industries, including automotive. How is Grupo Idesa approaching circularity and sustainability?

At Braskem Idesa, post-consumer resins (PCR) are produced by blending recycled resin with virgin resin. Cyplus Idesa emphasizes the circularity of products like sodium cyanide, ensuring transport boxes are reused to minimize waste and prevent unintended environmental impacts.

At a corporate level, we constantly seek ways to reduce our environmental footprint across all our operations and products. What is the chemical industry's role in Mexico regarding energy transition and sustainability?

The chemical industry significantly contributes to energy transition and sustainability. Our products themselves are non-polluting; pollution arises from improper handling after use. Plastic bottles do not end up in the sea by magic; there is a significant impact from inadequate human behavior. As an industry, we must strive to educate people through various initiatives and programs to foster responsible disposal practices.

Over the years, we have continuously improved our technologies to be more energy-efficient, reduce waste and minimize emissions. For instance, our high-engineering products help reduce vehicle weight and improve thermal insulation in buildings, resulting in lower fuel and electricity consumption. Additionally, we are constantly developing new chemical solutions that promote sustainability and contribute to initiatives like Ocean Sweep to prevent plastic pollution in oceans. What is Grupo Idesa's vision for the coming years?

Our goals for the coming years focus on strengthening our balance sheet and resuming medium-term growth. Following significant investments, such as our Joint Venture with Braskem Idesa, we have worked very hard to reduce our financial leverage. We see substantial opportunities in our petrochemical, distribution and logistics divisions. In distribution, ALVEG is positioned to capitalize on the expected increase in demand due to nearshoring. In logistics, we are consolidating our operations and exploring new opportunities in terminals to enhance efficiency in product logistics. Given our roots in petrochemicals, we are also committed to reversing the trend of trade deficits in the national chemical industry. We aim to leverage new government policies to promote local production of currently imported products.