Can you comment on the company’s performance for 2019 and the first half of 2020, with the impact of Covid-19?

Evonik’s diversified presence across industries and sectors makes the company versatile and adaptable to market conditions. 2019 was positive for business growth with an increase of 15% in sales in comparison to the previous year. The growth has been structural and comes from an array of permanent factors. First, we made considerable progress in integrating new acquisitions. Secondly, we increased our involvement with global partners and their projects in Mexico, collaborating in their start of operations in the country. Finally, we developed our business portfolio with current clients taking into consideration their demand for products.

In 2020, despite the additional challenges around the Covid-19 pandemic, we are showing again solid growth in terms of volume and turnover versus the previous year. Several market segments are showing already their comeback to previous levels.

Could you provide some details on how the different industries you are involved in are behaving?

Due to the new free trade agreement with the North American region and the renewal and modernization of the free trade agreement with the European Union, Mexico shows interesting business growth in several market segments. Agriculture is the fastest growing industry in Mexico, next to automotive. Mexican agriculture revolves around fruits and vegetables that have high added value. Both automotive and aerospace will continue to play a key role in Mexico´s economy. Meanwhile, the pharma industry shows a mixed picture. While the industry is responding to the Covid-19 pandemic situation, the lack of clear rules and strategy in the purchasing commitments of the Mexican Institute of Social Security impacted several laboratories. Finally, Mexico is becoming a key player in the global protein markets, with exports of beef, pork and poultry meat growing.

How will changes brought in by the new trade agreement in North America impact Evonik in Mexico?

We are part of Evonik’s North American platform and our closest partner for imports is the United States, as expected. Being an international company, we are flexible and can source our resources from Europe or Asia as well. Where we import our products from depends on our strategy and the product. While the rules around manufacturing for the automotive sector require some changes to operations, adjusting to the regulatory framework will suffice to sustain solid business projections. A positive development from the Covid-19 pandemic is certainly an increasing trend in the relocation of supply chains from other world regions to Mexico to support further growth in North America. As frictions between the US and China rise, and as the Covid-19 pandemic is forcing some US companies to rethink their supply chains, Mexico can only benefit.

Can you comment on the effect the López Obrador administration is having on business expectations?

Mexican industry continues unhindered by politics somehow and more foreign companies are entering the Mexican market. Many long-term investments look beyond current government policy and there are certainly important projections for Mexico globally. The country’s distinctive role as global manufacturing platform for many sectors supports interesting opportunities for further growth. Right now, at Evonik we are committed to continue developing the right set of products and technologies to serve our customers in Mexico and keep working towards long term growth.

What is the company’s strategy for innovation?

We want to collaborate closely with our clients to understand how to become more efficient and resourceful holistically. Innovating along the value chain with them makes us more flexible and allows us to better respond to external changes regarding time and cost. Only companies with a strong collaborative strategy with all stakeholders along the value chain can succeed.

How is the APLA conference useful and important for industry?

The APLA conference typically allows us to better understand our common challenges at a regional scale. There are political, social and economic dynamics in the region that sometimes result in uncertainty. APLA serves to understand that uncertainty and current affairs. It is great to connect with a diversity of players and provides a platform from which we can defend common interests.