What is the importance of Latin America in Dow’s global operations?

Dow has operated in Latin America for 68 years, establishing the region as a strategic pillar. Decades of navigating inflation, recession, and political volatility have shaped a resilient organization with deep customer ties. This environment has also made Latin America a key source of leadership talent for Dow globally. Executives from the region bring valuable experience managing complex macroeconomic challenges – insights that are increasingly relevant as similar dynamics unfold worldwide – ensuring Latin America continues to strengthen Dow’s global leadership pipeline. How would you describe 2025’s challenges facing the chemical and petrochemical industry?

The industry downturn, driven by China’s overcapacity and slower regional GDP growth, has lasted longer than expected. Broader global pressures have compounded the challenge: the ongoing Russia-Ukraine war has hurt European industrial competitiveness, while environmental regulation and geopolitical tensions – particularly between China and the US – add complexity.

Although Latin America has remained relatively stable, we feel the global impact. Dow operates 15 production sites across the region, including 10 in Brazil and a major ethylene and polyethylene complex in Bahía Blanca. However, with around half of Dow’s sales in Latin America reliant on imports from the US, our supply chain is not immune to external shocks. The region has seen limited GDP growth in recent years, with persistent uncertainty impacting long-term planning. How is Dow adapting to these global challenges?

Key areas under review include supply chain strategies, contract renegotiations, and alternative trade routes. The company is also engaging with governments to highlight the real-world impact of tariffs on complex cross-border value chains, such as automotive components. Dow is leveraging artificial intelligence and digital tools to enhance customer service. Looking across the region, what would you highlight as key developments?

Many products flowing between the US, Mexico and Canada remain protected by the USMCA agreement, though renewal talks in 2025 will likely focus a lot on rules of origin. Ongoing discussion means much of the situation remains uncertain. Mexico’s government is confident in its robust internal market to compensate for US trade issues.

Elsewhere in Latin America, Colombia remains linked to the US via a free trade agreement, despite current political instability. Escalated tariff threats have posed risks in Brazil, with the situation uncertain; as an American company with a large Brazilian presence, we are trying to build bridges. In Argentina, the economy is rebounding, driven by easing capital controls, lower inflation, and growing investor confidence, but with uneven economic recovery in manufacturing. Large-scale investments in the oil and gas sector are underway, centered on Vaca Muerta, creating the conditions for future petrochemical growth. We maintain a strong presence in Bahía Blanca. Where do you see most opportunity for growth in Latin America?

The mobility sector is expanding rapidly in Mexico, creating demand for Dow’s advanced materials; interest is rising in lower-carbon and bio-based alternatives in Brazil; and Argentina presents significant long-term potential driven by Vaca Muerta’s cost-competitive shale reserves. Any future capacity expansions must consider global oversupply. A new market equilibrium between supply and demand is expected to emerge within one to two years. How is Dow advancing sustainability across its business?

Dow remains fully committed to its sustainability agenda, investing in decarbonizing assets and expanding sustainable solutions, particularly in its Packaging and Specialty Plastics business. The REVOLOOP portfolio of recycled resins is scaling through partnerships like Benito Roggio in Argentina to secure post-consumer waste. Brazil is already operating with 100% renewable energy, and 75% of its Bahía Blanca complex will follow. Dow also leads the Ybá project, protecting 30,000 hectares of Amazon rainforest while supporting local communities.

Additionally, Dow fosters an inclusive, diverse culture. In Latin America, all our regional leaders are women, and 60% of the leadership team is female. What would be your forecast for the year ahead?

I believe this will be another challenging year for the industry, with this cycle of compressed margins lasting longer than usual. We have made tough decisions, such as adjusting our footprint in Europe and evaluating and adjusting the pace and spending of key portions of the FS P2Z project until market conditions improve, while remaining committed to growth. We are using this time to strengthen our business and unlock our full potential. We maintain close customer relationships, focusing on innovation and simplicity, which helps us navigate complexity.