José Ferreyros
Executive Vice President
TDM Group
View from the Top

Geomembranes Export Possibilities

Wed, 10/19/2016 - 15:43

Q: What position does Mexico play in TDM’s global portfolio, and how has this position developed over the past few years?

A: TDM Group is a Peruvian company that has been in operation for over 24 years, manufacturing and distributing three main groups of products, asphalt, geosynthetics, and steel goods. We entered the Mexican market in 2012, focusing mainly on the infrastructure sectors, but in 2016 we decided to expand our focus into the local mining industry. We see a vast amount of potential for our products in this sector, and indeed in other industries such as oil and gas and construction because our products can reduce operational costs for businesses in a number of ways. We operate in a total of five countries, Peru, Colombia, Brazil, Chile, and Mexico, and certainly Mexico will be a large focus of ours for the next few years.

Q: How can your products succeed in reducing costs for your clients?

A: Our Tensar polypropylene geogrid systems for haul roads allow for more effective soil recycling and use thinner paving structures than conventional solutions. This enables the user to transport heavier loads without the risk of damaging the road itself, which of course significantly reduces time and funds usually lost on maintenance works. This is a system that uses technology designed inhouse by our supplier Tensar more than 30 years ago, and is used throughout the mining and transport industries in Peru and other parts of South America. However, from our experience in Mexico, it is a relatively unknown piece of technology. That said, we have already sold more than 1 million m2 for use on the new airport project in Mexico City, and we hope to soon attract new clients within the mining and oil and gas industries.

Q: How does TDM differentiate itself from competitors?

A: The key is in the quality of service we provide. We do not simply manufacture the product and then distribute it, but rather we develop a relationship with each client by helping them through the installation process and explaining precisely how to get the most benefit possible out of our products. We have found this to be a successful approach as it ensures the client makes the expected savings, and therefore increases the likelihood of further business down the line.

Q: To what extent are there any plans to import geomembranes from Peru to Mexico?

A: We started exporting geomembranes to Mexico in May 2016, mainly to ponds and reservoirs but we are expecting to secure our first order for this line of products from the mining industry in Mexico before the end of the year. We are currently considering developing a second plant in Mexico due to the low operational costs and its close proximity to the other markets in North America. We see a lot of potential demand for these products from our clients in the US. However, we are waiting to gauge the level of return we get from the plant in Peru, which we only acquired in full this year, and these results will determine if and when we build an additional plant.

Q: Where do you see the most potential for the growth of TDM Group in Mexico?

A: I believe that our products are most widely applicable for the infrastructure industry, and particularly the new airport project, which represents a fantastic opportunity for the group. There are a number of pending bids for this project which include the use of our geogrid system. Depending on how construction at the site progresses, I would anticipate that this will be the main focus for TDM Group’s Mexican operations for the next three to four years. Regarding the mining industry, we have only recently turned our attention to this market, and we are still in the process of learning and exploring all the opportunities for our products.