APLA ’18: Ecuador chemicals distributor turns to specialties

CANCUN, Mexico (ICIS)–A major chemicals distributor in Ecuador is moving away from commodities to specialties, a regional source said on the sidelines of the annual meeting of the Latin American Petrochemical Association (APLA).

The distributor has reduced its focus on imports and sales of bulk chemicals, including liquid caustic soda, while increasing its business in break-bulk specialty products packaged in bags, drums and iso-tanks, the source said.

While still active in caustic soda distribution, the company plays a more discrete role in the marketing of the product, leaving major operations to a caustic soda producer based in Peru, which also has production plants in Ecuador, Colombia and Peru.

The chemicals distributor in Ecuador is currently working with high margin specialties, particularly in additives for the paint, food and personal care industries.

Additionally, the distributor is working with agricultural products, such as granulated fertilizers in bags and in bulk. The fertilizer business in Ecuador suffered a rough patch in 2018 when prices of rice and potatoes fell hard in the region. A recovery in the sector is expected in early 2019, as prices of rice and potatoes are recovering, the source said.

The APLA annual meeting runs through Tuesday.