Colombia. The Orbis Group, parent of Pintuco, Andercol, among other chemical companies, revealed its 2017 results and outlook for 2018. The company explained that it did not reach the sales volumes it was expecting in the country, "because consumer confidence has been in negative territory in the last 15 months," said Rodolfo Bayona, president of the company.
This totaled sales of 1.48 billion pesos, only grew 2% compared to last year, when it registered 1.46 billion pesos. Meanwhile, profit grew 408%, adding 40,707 million pesos, after registering a negative figure the previous year.
In addition, due to political uncertainty in Brazil, following the Odebrecht corruption scandals, some market segments had falls of the order of 30%. In Ecuador he also had difficulties due to the presidential elections. "The neighborhood was a little rough and we didn't get to the sales volumes of the budget. We fell short," he said.
Colombia accounts for 55% of the company's sales. It is followed by Central America (16%), Brazil (10%), Argentina (8%), Ecuador (6%), Mexico (3%), antilles (2%), Chile (0.2%) and Peru (0.1%).
The outlook for those countries would improve in 2018. But, in Colombia "not at the levels we were expecting, we are being cautious about the uncertainty caused by the elections in the client. The consumer is key and until confidence is restored, it will be difficult for domestic consumption to reach the levels we had about three years ago," he said.
However, infrastructure projects would mark the economy, "as long as they are executed quickly and without corruption."
He also said that the candidates for the Presidency should reinforce the issue of export-related infrastructure.
"It cannot be possible that getting a container from Medellin to Cartagena costs more than bringing one from China. We have higher costs than our competitors in Chile, Peru or the United States," he concluded.
Investments of US$45 million executed by Grupo Orbis in Cartagena
In mid-2017, the group with operations in 14 countries in the Americas began the construction of one of the plants of the chemical business (Andercol), which would be fully ready in May, to have the capacity to produce 6 thousand tons of fumaric acid per year. This chemical is used as a preservative and acidifier in food products. Located in a free zone, it exports 95% of what is produced.
The chemicals business accounts for 27% of its revenue, with a cut-off as of December 2017.
"It's a leading product in the Americas market," Bayona said, adding that this year's focus will be on the businesses it invested in last year.
Orbis has another polyester resin plant in Mamonal, Cartagena, which is being expanded to reach a capacity of 62 thousand tons.
The third plant is that of O-tek, its pipe business, which was inaugurated in September in the free zone, with an investment of close to 20 million dollars: "We have a Norwegian technological partner that tells us that it is the most modern in the world in the manufacture of polyester fiberglass tubes, which can reach more than 3 meters in diameter. The streams of Barranquilla are beginning to be channeled with this type of pipes."
To finance the plants, the president said, they helped local banks, as well as divestments, as they sold Inproquim, the chemical distribution business for more than 60 billion pesos.
