What’s going on with the chemical industry in Mexico?

It is no secret. The past eight months have represented a huge challenge to all the economies. With the pandemic at full effect, non-essential industries paused, and everybody safeguarded at home, everyone got the short end of the stick. So did the chemical industry in Mexico.

However, it is certainly showing promise on bouncing back, stronger than ever before. It will be implementing new processes that will ensure a better use of its resources. This could make it better for the environment too.

With the implementation of circular economy and the USMCA, this industry will be just fine

What seemed to be a great year for the chemical industry, projected to grow steadily, was interrupted by the COVID-19. The industry was cornered to operate at 65% capacity due to low demand and company shutdowns. 

“We had a great industrial activity before the announcement of the essential industries (due to the pandemic), and we supply 40 different manufacturing branches in the country. 

Nonetheless, we have areas that were affected by the measures taken, like the inorganic chemicals, which are supplied via mining, which is considered non-essential,”  stated Miguel Benedetto, director of the Mexican National Association of the Chemical Industry (ANIQ).

Fortunately, the ratification of the USMCA has aided the chemical industry as it gives the certainty investors need to the whole North American branch.

“The Mexican chemical industry reached a commercial flux of $19.2B USD with North America, and around $25.8B USD worth of chemical products were commercialized with the United States and Canada in 2019. We are hoping to use the USMCA to further strengthen the supply chain and the chemical industry as a whole,” added Benedetto.

Furthermore, Chris Jahn, CEO and President of the American Chemistry Council (ACC), further added a comment on removing all tariffs. He stated that it would play a fundamental role in the economic recovery and reactivation of the chemical industry

When talking about the reactivation of this industry, we are speaking of a cluster of many sub industries. These are heavily dependent on what is created by the chemical industry. There are several categories this industry can be duvided into.  

What are the types of chemical industry?

chemical industry in Mexico

The chemical industry serves as the backbone of many other industries. It provides the bases to create a wide arrangement of final products. In general, it can be divided in 6 major categories:

  1. The inorganic and organic chemical industries. They manufacture acids, salts, alkalies, antibiotics, natural and synthetic drugs.
  2. The fertilizer industry. This produces soil additives that help crops grow faster and stronger.
  3. Refineries and petroleum industry. These produce our fuels, powering our ways of transportation.
  4. The pesticides industries. It prevents pests from plaguing our crops. Being bugs, herbs, or weeds, they have an answer to everything.
  5. The electroplating and heat treatment industries. 
  6. Hydro-generated oil and soap industries. They manufacture industrial and everyday soap. Essential for medicine and our hygiene.

These industry divisions power many other industries. Example: without the fertilizers, the agricultural industry would depend more on seasons and not be as efficient. In other words, the chemical industry is crucial for us.

Why is the chemical industry important?

chemical industry

The importance of the chemical industry goes without saying. It creates plastics and polymers that assist in the medical field. It brings food to our tables with the aid of fertilizers and pesticides, and prevents it from spoiling with preservatives. 

Without a doubt, it is essential to life as we know it. Fortunately, it is seeking to become even better.The chemical industry in Mexico is adapting to be more efficient and environmentally conscious. 

This is because it is adopting the circular economy model. What this means is that the materials used in this industry will increase their lifespan and efficiency. How? By expanding their durability and repairing capabilities, reusage, and recycling of said materials. 

Even though the road has been rough, there is no doubt that the chemical industry in Mexico will become stronger than ever.

Settling your company in a country that has a great projection for its chemical industry would be extremely beneficial for its growth and prosperity. Even more with all the tariff reductions from the USMCA. Hence, here at VYNMSA we would like to assist you in settling in Mexico. 

We are one of the leading industrial real estate developers in Mexico. Plus, we have over 25 years of experience and have delivered over 350 projects to fully satisfied customers. We are also fully equipped to assist you in developing your BTS projects. All while offering lease and sale solutions that always have a win-win approach. 

We also have around 20 inventory buildings ready for immediate occupancy. This is a total space of 1.5 million SqFt across Northeast and Central Mexico.

Contact us and set shop in Mexico with VYNMSA and enjoy the benefits of its adaptive chemical industry.


Phone: +528122028599


Source: El Financiero, Economía Hoy, Ambiente Plástico, Environmental Pollution, hiddenChempions

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