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Challenges and opportunities in the chemical industry.
Last Wednesday, July 19, the Commercial Director of Alveg, Héctor Blanco, spoke with Neuron Automotive Talks about the challenges and transformations in the market and the actions that Alveg Distribución Química is taking in the face of the opportunities that are present in the automotive industry appear.“Today we participate in practically all the assemblers, be they light cars or trucks. We sell first-fill fuel -diesel or gasoline- (each unit will have a destination not only in Mexico, but anywhere in the world and this first fuel fill must respond to the transportation and weather characteristics of each place where it arrives); antifreeze, windshield washer fluids and in the process we participate with two large families of products: dilution solvents for the paint area of each automaker, and supply of purge solvents that are responsible for dragging all the surrounding circulatory the painting plant of any assembly company, to make a 100% removal without leaving any trace of paint”, listed Blanco.ALVEG has 10 branches, maintaining adequate stocks for the distribution of its portfolio of more than 1,000 chemical products throughout the country, through adequate logistics and the correct times to serve its customers. In the same way, he also spoke about Nearshoring: “Nearshoring has already arrived, we will see an increasing presence of the supply chain of suppliers in our country in the automotive industry. We are participating in it and we are very attentive with this intelligence team to participate in all its stages”.See the full talk at the following link: https://neuronbusinessmedia.mx/industria-quimica-retos-y-oportunidades-de-un-sector-en-franco-crecimiento-en-el-pais/
ALVEG IS RECOGNIZED AS AN EXCEPTIONAL COMPANY
During the first edition of "Exceptional Companies" held last October 12, ALVEG Distribución Química, S.A. de C.V., was awarded by the Communication Council, the Business Coordinating Council and the Institute for the Promotion of Quality, who recognized the actions that the company carried out during the pandemic caused by COVID-19, in the year 2020. The theme of this first edition was based on the actions that have contributed to the economic reactivation of Mexico during the pandemic caused by COVID-19, where ALVEG recorded different practices and actions to safeguard security and health of its employees without affecting the continuity of the business, as well as the support to society through the donation to health institutions of products for personal disinfection and sanitization, developed and manufactured by the company itself. The ALVEG team participated in 2 categories: Response and Adaptation Strategies, as well as Support and Social Commitment, receiving the Good Practice and Exceptional Practice awards respectively, which were received by the Executive President of the company on behalf of all employees, who from their various areas, participated for several weeks in order to comply with the documentation, interviews and all the requirements established by the organizers, to perform the evaluation by the Committee appointed by the Institute. This recognition shows the commitment of ALVEG team, as well as Grupo Idesa, being the result of everyone's work to succeed in moving forward as a company despite the adversities and challenges that arise every day, seeking solutions that benefit and serve as a guide to the entire community. We thank everyone who is part of this achievement. 
BRASKEM IDESA ANNOUNCES AGREEMENT WITH PEMEX FOR ETHANE SUPPLY AND IMPLEMENTATION OF AN IMPORT TERMINAL
Braskem Idesa (BI) reports that it has entered into an agreement with Petróleos Mexicanos (PEMEX), adjusting the terms of its supply contract, as well as an agreement to develop an ethane import terminal. This gives it the possibility of making medium- and long-term plans by having access to various sources of raw materials that will enable it to produce polyethylene at full capacity to supply the local and international markets.     This agreement (subject to final approval by the Boards of Directors of both parties, as well as BI's creditors), in addition to resolving historical differences that had been discussed by the parties, establishes new volume and price commitments for the supply of ethane from PEMEX to BI, compatible with the current and future availability of this raw material in the country. The agreement will allow the long-term sustainability of our plant, located in Nanchital de Lázaro Cárdenas del Río, Veracruz.     In addition, Braskem Idesa plans to build a new terminal for the ethane import on global scale, with an investment of approximately US$400 million, which will be located in the Pajaritos Lagoon, in Coatzacoalcos, Veracruz. This project will be located in the area of the CIIT - Interoceanic Corridor of the Isthmus of Tehuantepec - and is one of the initiatives of the investment plan announced by the Federal Government for the development of the southeast of the country and the energy sector. As a result of the above, a collaboration agreement was signed with PEMEX, CIIT and API Coatzacoalcos (Administración Portuaria Integral de Coatzacoalcos).     Thus, the new agreement guarantees BI's operations, providing certainty to its customers, creditors, shareholders and collaborators, promoting the development of the domestic petrochemical industry, which is source of essential raw materials for countless production chains.   With the new agreements, BI will continue to contribute to the social and economic development of Mexico, as the Ethylene XXI Complex has done since the beginning of its operations in 2016. Braskem Idesa is the result of a 5.2 billion dollar investment by Braskem and Grupo Idesa, which has positively impacted Mexico's trade balance by more than 4 billion dollars and has boosted the development of the southeast of the country with the generation of thousands of direct and indirect jobs. 
VERACRUZ WILL HAVE MORE CAPACITY FOR FLUIDS WITH EXCELLENCE EXPANSION
Dear Valued Customer and Supplier.Grupo IDESA has been actively monitoring the COVID-19 situation since last January. Our focus has been on our core values (Integrity and Commitment), and two priority points- Health and Safety of our employees and their families,- Maintaining Business Continuity with our customers and suppliers.As such, we put a number of measures in place to reduce the risk and prevent the spread of COVID-19 to our workforce, including travel ban that we enforced since March 5th.In this context, we willstay connected with our customers and suppliers to ensure continuity of service and supply, as well as to adapt to changing circumstances. This interaction will take a different form for the coming weeks, moving to more virtual connection by taking advantage of our virtual communication technologies, such as telephone conferencing, video conferencing and web conferencing. Rest assured that while our face-to-face meetings are reduced, our commitment is to provide you with the highest level of support and quality as always.We are actively monitoring the situation and taking the appropriate manufacturing and supply measures. If this situation changes, we will let you know as soon as possible.At last, we would like to remind you that your IDESA contact is always available to answer any question or concern you may have regarding orders, deliveries and product availability during this time.We value for your business and want to take this opportunity to thank you for your understanding and support.Sincerely,Grupo IDESA
Supplies for the national chemical industry are lacking, warns ANIQ.
Considering the relevance of the chemical industry as a supplier to more than 40 industrial sectors, it was considered for its importance in the list of essential industries, so it can operate and serve most of its clients during the health contingency."In this sense, we are calm with the measure taken by the government, although we continue with critical issues on our agenda, such as the need for a timely supply of raw materials and energy," said José María Bermúdez, president of the National Association of the Chemical Industry (ANIQ).For its part, the utilization of the installed capacity of the national chemical industry is only 73 percent, not due to lack of demand, but due to lack of raw materials and energy."The situation has been complicated by the deterioration of oil production, as well as the availability of gas as a petrochemical input by Pemex, highlighting ethane and propane," Bermúdez explained.ANIQ, an association that groups 260 companies and represents more than 95 percent of the private chemical production in the country, advocates increasing the production of natural gas in the southeast of the country and reaching the available natural gas with the start of the marine pipeline of the Federal Electricity Commission (CFE)."In our dialogue with the Secretariats of Energy (SENER) and Economy (SECON) we have emphasized that Pemex's focus solely on oil has been breaking integration chains in the chemical industry," he said in an interview."Today, the government's priority is not in the gas supply for the chemical industry. The situation has been exacerbated and companies in the industry in the Coatzacoalcos area have received confirmation that Pemex cannot supply them with natural gas, ”so it is essential that the Energy Regulatory Commission approve the balancing adjustment mechanism when the CENAGAS intervenes the system, affirmed Miguel Benedetto, Director General of ANIQ.The construction of the 16-kilometer gas pipeline between Zempoala and Coatzacoalcos is critical to bring natural gas from the marine pipeline to the Coatzacoalcos area. "So far, the federal government is not building it, there is interest from the IP in doing it, but we are still stuck in who does what.""Likewise, we have proposed collaboration alternatives so that the industry has the necessary natural gas, as well as investment proposals to be able to import the ethane and ammonia that the country lacks," Benedetto said.ANIQ faces the challenge of developing collaboration mechanisms with Pemex and private initiative to restore supply and stop the contraction of the industry.It was achieved that our industry is considered essential and can continue operating during the pandemic, now we work "without achieving the clarity on the part of the government that we want on how the articulation of broken productive chains will be achieved," said José María Bermúdez.He assured that the chemical industry has invested 12 billion dollars in new assets during the previous administration, while the demand for chemical products in the country has grown 6 percent annually in the last 15 years. "The underutilization of our capacity means that imports of chemical products continue to skyrocket," he warned.On the other hand, he commented that "The problem of guaranteeing the production and importation of essential products is aggravated because the National Commission for the Protection against Sanitary Risks (Cofepris) shows a lag in the issuance of permits which complicates production and importation of supplies ”, added Miguel Benedetto. "It is urgent to unlock the investments," he concluded.Source: Energy under debate
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