Innovation, Collaboration Key to Nearshoring Success: Evonik

Q: How do you assess the appetite for industrial investment in Mexico within the sectors where you operate?

A: Historically, global and international interest in Mexico has been very strong, particularly as companies seek to further strengthen value chains and production platforms. This is not only to serve the North American market, but also, in some sectors, to position Mexico as a truly global export platform capable of supplying other regions. Mexico is already the No. 1 exporter to the United States, and we continue to see solid demand and sustained interest in what can be produced here.

That said, companies today must balance short-term management with long-term leadership. In the short term, risk mitigation is essential, especially given current geopolitical discussions and the broader shift from a highly globalized world toward a more regionalized one. However, no country or region operates in isolation. The global economy remains deeply interconnected, and within that interconnection, Mexico plays a critical role.

From a long-term leadership perspective, Mexico’s opportunity remains intact. Investment interest goes well beyond the automotive sector, which has traditionally been a defining pillar of the Mexican economy, and extends to aerospace, personal care, home care, and other industrial segments. Nearshoring is no longer exclusive to automotive. While it may have started there, it is now clearly visible across multiple sectors.

In the short term, some of the uncertainty that characterized 2025 is likely to carry into the first half of 2026. Even so, the structural fundamentals that support industrial investment in Mexico remain solid.

Q: How has Evonik supported industrial competitiveness over the past year in this context?

A: Our role is closely linked to our proximity to clients. Through our 10 business lines operating in Mexico, we serve virtually all productive sectors, both industrial and non-industrial. This gives us a very broad view of where opportunities and challenges lie.

At Evonik, sustainability is central to how we operate, and we approach it through two dimensions: footprint and handprint. Footprint refers to how we conduct our own operations responsibly. Handprint refers to how we help our clients achieve their sustainability and energy transition objectives. This client-focused approach is increasingly important.

Mexico is particularly relevant because most of our global customers are present here. Being close to them allows us to support business development, new product launches, and the localization of production lines and value chains in Mexico, either to serve North America or to expand their strategic footprint.

We are also seeing a shift toward deeper collaboration. Beyond applied technology and application laboratories, there is growing interest in research, development, and innovation. After building a strong manufacturing base, it is natural for companies to leverage that knowledge and infrastructure to develop new ideas locally, with global impact.

Finally, we are investing heavily in next-generation products, aimed at addressing sustainability, circularity, and energy transition challenges. Mexico is not an exception in this strategy. On the contrary, it represents a significant opportunity to co-create solutions with clients. As discussions around rules of origin and USMCA evolve, our North American footprint also allows us to help clients remain competitive while meeting regional content requirements.

Q: From an industrial perspective, how do you see companies understanding the potential of waste, carbon footprint, and environmental impact as positive drivers?

A: This is a global challenge, not one unique to Mexico. When we talk about recycling, waste reuse, and new technologies, success depends on three pillars: the private sector, academia and research, and government. Regulation, incentives, and legislation can either accelerate or complicate implementation.

From the private sector side, there is little doubt about the direction. Energy transition, circular economy models, and alternative technologies are clearly where the market is heading. However, the transition has a cost. New solutions often begin at a higher cost than traditional technologies, and the challenge is managing that transition until scale and optimization make them competitive.

The private sector is often the least significant barrier. Ideas, talent, and capital frequently originate there. The challenge lies in aligning incentives across the value chain and ensuring that solutions also make sense for the end consumer. This requires thinking beyond individual segments of the value chain and focusing on the final outcome. It may also require stronger engagement with retailers and consumer-facing sectors, so that everyone shares a common objective. When that alignment exists, differentiated, more sustainable products become not only viable, but competitive.

Q: In the oil, gas, and petrochemical sectors, where do you see the low-hanging fruit? What short-term actions could deliver meaningful results and help reactivate the sector while unlocking opportunities in Mexico?

A: Since October of last year, following the National Association of the Chemical Industry forum, a joint working agenda has been established with PEMEX to better understand how the private chemical sector can collaborate to reactivate the industry and restore the essential role that PEMEX plays for our sector. 

PEMEX and the chemical industry together represent a fundamental pillar of the Plan México initiative. Without a robust and competitive PEMEX, capable of supplying the products and technologies the market requires, many downstream sectors will struggle to realize their strategic ambitions under this plan.

At the same time, the chemical sector, together with its counterparts in Canada and the United States, strongly supports not only maintaining but further strengthening the North American free trade framework. This is a strategically important sector with long-term relevance, but it also offers short-term opportunities. Public-private collaboration with PEMEX could help rebuild production chains that have weakened in recent years. This would benefit both sides: the chemical industry as a client of PEMEX, and PEMEX as a client of the chemical industry, across both upstream and downstream activities.

That said, after many years of accumulated challenges, solutions are not immediate. Beyond financial constraints, there are significant technological considerations. Key questions remain around the scale of required investments, the framework under which they would occur, timelines, and contractual structures that would allow private companies to invest confidently in existing or new assets. Stronger energy, petrochemical, and chemical sectors are essential for the next wave of nearshoring to materialize.

In parallel, there are tangible opportunities in circularity and recycling. Mexico City, for example, has significant potential in plastics recycling. I firmly believe in a combined approach that integrates both mechanical and chemical recycling. There is no single solution. Mexico already has strong examples, particularly in PET recycling, that should be further encouraged. Education around waste separation remains critical, as it directly impacts the quality and usability of recycled materials.

Initiatives within the industry, such as those promoted by ANIQ through CIPRES, play an important role, including programs like Plastianguis that encourage citizen participation. However, a clearer national agenda would further strengthen private sector efforts.

Biogas is another area with clear potential, but it requires regulatory clarity. For technologies such as gas purification membranes, it is essential that legislation allows not only self-consumption but also the injection of upgraded gas into the natural gas network, similar to how solar energy evolved beyond pure self-consumption.

Q: Some companies tell us they already have the technology, but the challenge is whether PEMEX can adopt it. How do you see that dynamic?

A: Deployment remains a challenge. Organizational structures and internal guidelines can be rigid, and in some cases outdated, which complicates the adoption of new technologies related to circularity, energy transition, and alternative production methods. In the case of PEMEX, these challenges are compounded by regulatory gaps. That said, I do perceive greater openness driven by economic necessity and performance pressure. There is more willingness to explore flexibility and to consider external ideas and solutions.

In the private sector, the main limitation is often the lack of clear regulation rather than a lack of interest. Many companies are ready to invest and deploy solutions, not only for individual projects but to serve the broader Mexican market. What is needed is greater legal clarity and a framework that defines how private actors can participate, especially in a system where the state plays a central role in the energy sector.

Q: Looking ahead, how do you see the priorities of USMCA and Plan México aligning or conflicting?

A: I see the North American block as fundamentally complementary. Despite differing national interests, there is no other region with the same level of integration, maturity, and interdependence as North America. The chemical sector across Canada, the United States, and Mexico strongly supports the renewal of the USMCA.

A year ago, many expected a far more disruptive scenario. Instead, despite uncertainty and a slowdown in investment during 2025, Mexico has emerged as one of the relative beneficiaries of geopolitical tensions and tariff discussions. While uncertainty remains, especially for the next six months, I believe the outcome will be a trade agreement that is equal to or stronger than the current one.

From my perspective, and also as president of the German-Mexican Chamber of Commerce, the more than 2,200 German-capital companies operating in Mexico continue to view the country as a natural and strategic platform within North America. The expectation remains positive, even as negotiations continue.

Evonik is one of the world's leading specialty chemicals companies. It operates through Specialty Additives, Nutrition & Care, Smart Materials, Performance Materials, and Technology & Infrastructure segments.