Mexichem’s main competitive advantages are:

Leadership as a low-cost producer.

A leader in the markets in which it participates, Mexichem is known for:  its low-cost production strategy via constant investments in proprietary and cutting edge technology; being integrated towards its two key raw materials in both its main Production Chains; materializing synergies in logistics, purchases, systems, treasury, human resources, etc.; constantly developing and implementing cost-efficiency projects.  

The only national producer integrated towards its key raw materials.

Within its two main Production Chains, Mexichem is the only national producer integrated towards its raw materials. In the Vinyl-Chlorine Chain, it is integrated from salt to plastic compounds; it has premises to manufacture salt (both for industrial and human consumption), chlorine, caustic soda, chlorinated products, PVC resins and compounds, in addition to being integrated in the manufacture of plasticizers towards its key raw material -phthalic anhydride. Within the Fluorine Chain, the Hydrofluoric Acid Process has its own fluorite mine- the largest in the world- making it the only worldwide producer which is integrated towards its key raw material.

This integration affords Mexichem a peerless competitive edge, not only in Mexico but also worldwide.

Economies of scale.

In a commodity industry such as the one in which Mexichem participates, economies of scale are a significant entrance barrier for new competitors. This strength makes it possible to dilute fixed costs through greater production volumes, and thus gain better margins.

The Vinyl-Chlorine Chain is noteworthy for having its own salt mine, the most important facilities for producing chlorine and caustic soda in Latin America, and the largest equipment for producing PVC resins in the region, as well as the infrastructure to manufacture the largest volume of plastic compounds and plasticizers in Mexico. 

The Fluorine Chain’s fluorite mine is the largest in the world and has the greatest proven reserves; in addition, the chain has the second most important hydrofluoric acid production plant.

Selection and positioning with strategic customers.

Mexichem has long-term product supply contracts with its main national and international customers and suppliers, enabling us to show sustainable development. Likewise, based on growth potential and size, Mexichem has defined the market segments in which it wishes to participate, positioning itself with strategic clients in these high-growth-potential markets under this contract scheme, which gives it a unique competitive advantage not easily reached by its competitors.

Process and product technology innovation (proprietary).

Mexichem has proprietary technology in its Production processes, placing it ahead in technology, since it has developed unique designs in its Production Chains, in turn affording it an edge over its competitors worldwide. For instance, in the Vinyl-Chlorine Chain, the current conversion costs of its PVC resin production process are lower than for any of its competitors, thanks to the development of its own technology. The Fluorine Chain is a similar example in the Hydrofluoric Acid Process where it has developed state-of-the-art technology to purify fluorite. In addition, it has a product research and development area with staff and facilities which enable it to innovate products customized to its customers’ needs.

Special products performance.

Mexichem also participates in the production and marketing of special products which, due to our customers’ needs, must meet design and performance standards differing significantly from those for commodity products; this places Mexichem in market niches that can only be reached through research and development, specialized processes, the creation of solutions, and excellent customer service. This allows Mexichem to participate actively in segments as sophisticated and specialized as the medical sector -once again, a competitive advantage that no producer in Mexico can reach, and few in the world can achieve.

Synergies from Acquisitions.

The new business focus shifting from the old Division system -which was justified when Subsidiaria Mexichem existed- to Production Chains as the central axis of Mexichem’s industrial and commercial policy, has led the Group to carry out various investments into sub-sectors of the chemical industry. For instance, the acquisition of Quimica Fluor, S.A. de C.V. gave birth to the Fluorine Production Chain, which became vertically integrated with the resulting benefit in costs and profit generation. Likewise, the acquisition of Grupo Primex, S.A. de C.V. strengthened the Vinyl-Chlorine Chain; it significantly increased the volume of production and sales, allowing Mexichem to establish itself as a leader in its market.