How are you adapting to the effects of COVID-19?

The Covid-19 pandemic has forced the world and IDESA to use all the technological tools we had at hand, but we were not convinced of their usefulness or we did not exploit them efficiently before. Covid-19 has brought about a global and organizational change, giving us a new form of remote work and a new style of face-to-face work. Those of us who have been able to work remotely have become more efficient and productive in our chores, and it confirms our commitment to all those workers who still perform their work at the production or distribution sites.

Adapting to this dynamic has allowed us to continue our operations, focused on goals and results. Covid-19 has forced us to break paradigms, giving us the opportunity to explore new markets such as the commercialization of hygiene, health and personal cleaning products. We have created a new product portfolio for the distribution of home and health products, giving us a new growth opportunity in this segment.

Do you think the public perception of the chemical industry has improved with the pandemic?

The pandemic has brought a new perception of the chemical sector. As an industry, we have been behind the great effort to combat the virus; we are behind the creation of vaccines, health treatments, safety packaging and diverse hygiene materials. We must continue to educate current and future generations in the benefits of our products and the responsibility we have for the environment.

Mexico’s chemical industry has suffered a lack of feedstock for years. What can be done about it?

Mexico needs a strong Pemex, which is not the case today. Pemex’ economic and operational situations are quite delicate, so we support the government’s efforts to revitalize the company. Unfortunately, Pemex alone cannot meet all the demand of raw materials that Mexico has. A long-term, sustainable solution would be a combination between State and private sector initiatives, as per the previous energy reforms.

How could the country reactivate investment in the construction segment?

The construction segment has been one of the hardest hit during the Covid-19 pandemic. Given the nature of the activities, keeping a safe distance and hygiene measures has become a challenge for the different actors within this industry. The infrastructure sector stopped activities for several months given the combination of uncertainty in the face of COVID-19 and the global economic crisis we are facing. Fortunately, the country has announced new infrastructure projects to develop in the following years.

Could you tell us about the joint venture companies you participate in, notably Braskem Idesa and Cyplus Idesa?

Braskem Idesa was already facing a difficult situation before the pandemic due to an oversupply in North America, coupled with low polyethylene (PE) prices because of low oil prices. However, demand has remained strong during the pandemic and, coupled with our good market position in Mexico and export markets, we have been selling all our production capacity. In the long run, PE prices should increase as demand will grow, but this will be a slow process.

Our sodium cyanide business at Cyplus Idesa’s operations was initially impacted by the pandemic. The mining industry in Mexico was considered a non-essential activity during the first months, so mines had to shut down; however, the sector has reopened and demand is coming back again. Right now, gold is trading at near-record highs and sodium cyanide demand is very strong, giving our JV a good boost.

How is the new scenario boosting innovation across Grupo Idesa?

IDESA in investing and upgrading its technological platform, this has allowed us to improve our internal processes, making us more efficient and productive. We are becoming more agile and faster to respond to changing market needs. We will be seeing, in the coming years, the introduction of new global rules and regulations that will change not only the way we do business, but the way produce, distribute and transport our products. We are adapting to a reality that demands us to be more sustainable and innovative. The new rules of the game will be sustainability and technological innovation, so companies will have to refocus their resources to target these two.