What are Química Anastacio’s growth projections for 2020?

JK: Química Anastacio operates in 18 market segments and we see plenty of opportunities to complete more packages coming from suppliers and customers. Currently we have around 1,000 products in our portfolio, which we aim to continue growing with approximately 10 new products per month.

Currently, our key divisions in Brazil are beauty and health, industrial processes, and food. We treat each business segment like an individual company. Our growth projection for 2020 is now more than 15%. Key factors are higher concentration of our sales to “essential” segments, like personal care, household, food, pharma and agriculture, which have been showing a higher demand during the pandemic period and also increase of overall commodity prices in H2 2020.

How do you adapt to the ups and downs of the regional economies in Latin America?

MV: In Anastacio Overseas we believe that simple processes, a light and horizontal structure and a fully transparent relationship with customers and suppliers make the best combination to adapt our company to the current high-volatility scenario. We also believe in leadership based on merits, that is how we get the deepest commitment from all team members and outperformed even during these times of crisis.

Brazil was recovering when the pandemic hit. What is your expectation for Brazil’s economy this year?

JK: Government measures like allowing affected companies to put employees on hold, providing them with a public payment in order to keep jobs and incentives like low interest loans and extensions of tax payments have injected money into the economy, reducing the Covid-19 damage. Another positive factor is the interest rates, which decreased to 2% per year, the lowest in history and very attractive for private investment.

GDP contraction in Brazil for 2020 is currently estimated to somewhere close to 5%, which is not so bad, considering the overall situation. On the other hand, we cannot predict how the economy will react in 2021 when government incentives are reduced, as it will not be possible to sustain such high spending. At Anastacio we are doing our homework, being prepared with solid finances and contingency plans for a potentially more pessimistic economic scenario.

Before Covid, how did Anastacio Overseas perform in 2019?

MV: In 2019, our weighted average sales price decreased almost 25%, but due to a volume increase of 56% compared to 2018, we ended the year with a turnover of US$65 million (+20% inter-annual). We estimate we will end 2020 with sales above US$100 million, even if prices continued falling by 7% or 8%. That practically equals the plans we made when Covid-19 was not even a threat.

There are also projects that materialized in the second half of the year, like opening our operation in Mexico, and the development of our own titanium dioxide brand, AOTiOx. The results of these ventures will gain increasing weight in 2021, when we also expect a recovery of our traditional markets (polyurethanes, resins, building materials, etc.)

APLA celebrates its 40 years in 2020. What have been the main changes you have seen in APLA and the wider chemical industry over the last decades?

JK: APLA has always maintained a deep commitment to integration between producers and channels, suppliers and clients, service providers and business partners. APLA has always been home for the Latin American petrochemical community members willing to connect with others, and worldwide companies looking at this region as their focal point of growth.

We have memories of the APLA since late 90s, and we still consider APLA as the most important event of our sector, even when unfortunately we will only have remote participation this year. The APLA event is a great place and a very efficient way to meet suppliers and distributors from across Latin America. This great networking opportunity not only creates concrete business opportunities, but allows a deep view of the market.