ICIS Top 100 Chemical Distributors: Associquim sees resilience in Brazil chemical distribution sector

12 July 2013 09:46  [Source: ICB]

Brazil's GDP growth of just 0.9% in 2012 made it a frustrating year for all industrial sectors. Nevertheless, the chemical distribution business showed some resilience and was able to increase sales on a local currency level, but not in terms of US dollars because of currency devaluation.

The scenario for the next coming years for Brazilian chemical distributors remains very positive and we are quite confident that our presence and function plays an important role in the supply chain.


Essentially, distributors are becoming full-service organisations

One aspect somewhat unique to Brazil is that it imports more intermediate products as raw materials for local industrial firms, rather than finished goods. Distributors have the expertise to address this demand, acting as importers, consolidating volumes and transferring productivity to benefit customers - the small and medium-sized industrial manufacturers.

There were encouraging positive numbers for capital goods production in the first months of 2013, mainly related to agribusiness investment. In addition, the government's plans to invest in infrastructure such as ports, airports, railroads, roads and housing, ahead of the World Cup in 2014 and the Olympics in 2016, will create huge demand for chemicals handled by our members.

The rise of the middle class is also creating new demand for more sophisticated and higher value-added food and consumer care products.

In order to provide the strongest marketing and logistical support to cover the growing demand, distributors are constantly improving their services and facilities, adding value by providing timely service, inventory management, technical assistance and laboratory services. Essentially, distributors are becoming full-service organisations.

We are proud to announce that our PRODIR (Responsible Distribution Process) was selected by the Brazilian Ministry of Agriculture to participate in a official publication entitled ¨Sustainable Agriculture" as the only entity selected to represent the chemical segment.

With a print run of 5,000 copies, the publication will be sent to universities, federal government departments across the country, and to all Brazilian embassies over the world.

Associquim truly believes PRODIR not only promotes the proper handling and application of chemicals, but also contributes to the development of the distribution industry in Brazil, focusing on environmental aspects and sustainable innovations, as well as corporate governance.

Author: Rubens Medrano

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