Headquartered in Houston, Texas, Andino Chemical Group is a logistics and distribution solutions company supplying chemical and raw materials products from North America, Europe, and Asia to its primary focus locations in Latin America.
As the chemicals industry becomes increasingly consolidated, Founders are becoming less common. Tell us, how did your journey into the industry first start?
Dutch people have a reputation for being commercial, adventurous, and entrepreneurial. My father embodied these traits when he left Holland in the 1950s in search of opportunity and established himself in Colombia. I grew up immersed in the chemical distribution business. Since childhood, I was surrounded by the logistics of trucks, warehouses, tanks, and ships, along with the challenges that come with operating in Latin America. My father pioneered an integrated supply chain solution, managing everything from procurement to ocean transportation, storage, and distribution.
He built the company into the fifth-largest independent chemical distributor in the world before selling it to Brenntag in 2000. Brenntag had a different operational focus, and I was tasked with divesting assets like storage tanks and ships that my father had built. Afterwards, I ran Brenntag's Latin America division for over a decade, where we significantly grew the business by leveraging market dynamics and addressing inefficiencies in chemical distribution.
What are the main dynamics at play when operating within the Latin American market?
The lack of existing infrastructure often provides an opportunity for innovation. When there’s a need for investment to overcome challenges or leapfrog competitors, we make those investments to better position ourselves. We operate as a problem-solving, solutions-oriented company, aiming to optimize logistics and provide tailored solutions to our customers.
Additionally, monopolies in certain markets present opportunities. For instance, when a trading outfit dominates a region, we introduce competition by investing in shipping solutions that democratize access. This approach allows suppliers and customers greater freedom to operate without being beholden to a single entity.
Where have you identified as the market with the most potential for growth in the coming years?
Despite political uncertainties, Mexico is by far our most promising market; a vital market with robust industrial demand. Historically, Mexico was largely self-sufficient in meeting its domestic needs for oil and petrochemicals, but inefficiencies within Pemex, the state-owned oil company, have led to a decline in domestic production. While demand continues to grow, Mexico increasingly relies on imports.
The logistical landscape has transformed. Importers now require larger shipments to sustain growth. For example, the U.S. automobile industry depends heavily on Mexico for production. This dynamic won’t change overnight, even with tariff challenges. As a result, we’ve invested heavily in infrastructure, such as our terminal in Tuxpan, to support this growing demand.
2025 is projected to be a year of global uncertainty and increased geopolitical tensions. How do you plan to navigate potential disruptive trade tensions and regional instabilities?
Inventory and supply chain disruptions remain significant challenges. Events like the Panama Canal slowdown and the Suez Canal blockage underscored the risks of over-reliance on single sources and the importance of supply chain resilience. We address this by offering diversified sourcing and supply options and exploring alternative logistics strategies. Mexico’s evolving import regulations and Pemex’s protective policies create both obstacles and opportunities.
While increased compliance requirements may discourage competitors, they allow us to stand out by consistently meeting these challenges. This approach strengthens our relevance to customers who rely on our ability to navigate regulatory hurdles. Another common issue involves inefficiencies in handling and storage. We work closely with customers to propose innovative tailored solutions, such as transitioning from manual handling of products to more automated systems like bulk storage tanks. This not only reduces manual labor and spill risks but also enhances overall efficiency.
How is the profile of your typical customer changing, alongside emerging trends?
We’re seeing shifts, particularly with the rise of renewable diesel and sustainable aviation fuel. Many U.S. refineries have transitioned to processing renewable raw materials like soybean oil, beef tallow, and used cooking oil. This shift has created a demand for new supply chains and logistics tailored to these materials.
Additionally, we’re receiving more inquiries from non-traditional customers in industries like renewables. For example, companies importing vegetable oils are asking us to invest in infrastructure to accommodate their needs. This trend reflects broader economic shifts and evolving customer priorities.
As a logistics and distribution solutions company, how are you addressing emissions and optimizing logistics to improve sustainability metrics?
On the ocean transportation side, we comply with IMO standards, using ultra-low sulfur fuels and fitting our ships with scrubbers to minimize pollution. However, Latin America is not yet ready to adopt fully carbon-neutral logistics due to economic and social realities. While we aim to minimize environmental impact, achieving 100% carbon neutrality by 2030 would require significant investments, such as transitioning our fleet to electric vehicles and retrofitting ships for renewable fuels.
We remain aware of sustainability trends in the U.S. and Europe and adapt them pragmatically to our operations in Latin America. Our focus is on balancing environmental responsibility with economic feasibility, ensuring we meet local needs without overextending resources.
What role does technology play in staying competitive in your operations?
The chemical distribution industry has realized that being a "one-stop shop" is no longer effective. Specialty distributors are valued for their technological investments in R&D and innovation. However, in commodities, where we operate, cost efficiency is key. Customers prioritize price, often switching suppliers over minor differences, though they frequently return for better service.
We’ve experimented with digital platforms to connect customers and suppliers, but regulatory complexities across different countries make it challenging to implement a universal solution. Instead, we take a tailored approach, adopting specific technologies as required by partners or market demand.
