BBR | Magazine, January 2021

WHO WE ARE:

Managing Director

Jassen Pintado

Creative Director

Omar Rodríguez

Editor in Chief

Rafael Tablado

Finance Director

Christina Schoch

Social Media Director

Maria Elena Gastelum

Content Coordinator

Alicia Barrantes

Project Directors

Ana Macfarland

David Alarcon

Giuseppe Modenesi

Lucy Verde

Marcelo Modenesi

EDITOR’S LETTER:

February 2021

With 2020 already in the books, it slightly seems we may be on the way to end the global pandemic, or at least we may enter into a less destructive phase... not without transforming our personal and professional activities, which still demands examining with detail all that can be improved and those points in which we should change our perspective.

DeAcero and DeAcero Logistics have already been through such transformations even before COVID19 and its consequences, by learning to perceive themselves from the outside-in, optimizing

their processes and creating value for their clientele, placed as the center of each of the company’s interactions, delivering their products globally from Mexico.

On its behalf, Santos Industria displays why the company is Honduras’ ideal partner for construction, offering cement blocks, cobblestone, aggregates and large prefab items supporting important infrastructure projects.

In 2021 we wish the next success story we get to publish is about you and your company!

Mateo Rafael Tablado, Editor in chief for The Boston Business Review

Email:

rafael.tablado@thebostonbr.com

BLANCA TREVIÑO:

THE KIND OF LEADERSHIP THAT MAKES THINGS HAPPEN

Woman’s empowerment in business has a pioneer named Blanca Treviño. She stands out in the ICT sector in Latin America, the United States and beyond

Blanca Treviño’s frame of work stands for decades leading Softtek, one of the first ITC companies in Mexico, which she and her partners created in 1982, when not only was uncommon to own a home computer, but also around the time a personal computer’s dimensions were just reducing to fit in a single desk. It’s very clear that her outstanding, successful career happened before recent efforts to bring women’s efforts in the workplace to the forefront; the place Treviño is at has demanded

work, vision and attributes such as determination.

Before the end of the 1970s, Treviño was admitted to the Monterrey Institute of Technology and Higher Education (ITESM, popularly known as “el Tec”, one of the most prestigious colleges in Latin America), where she earned her bachelor’s degree in computer science administration. Shortly after graduating she created Softtek, which has gone beyond working for both the public and private sectors, and any size of enterprises to extend its services

abroad, making Mexico an attractive ITC provider for the United States, practically defining what today we actually know as ‘nearshoring’. Softtek currently operates in more than 30 countries, becoming the largest independent ITC service provider in Latin America.

UNDER THE SPOTLIGHT IN MEXICO AND ABROAD

Treviño’s notoriety and success has led her to be considered a very influential presence in business not only in Mexico and Latin America, but rather globally.

Forbes magazine considers Treviño among top decision-makers and most powerful women in business, as well as into the top 50 most powerful women in Mexico; the former Latin Business Chronicle (now Latin Trade) listed Treviño among the 25 most

important businesswomen, and Fortune magazine also includes her in their 50 most powerful women list.

ACCOLADES AND DESIGNATIONS

Treviño’s career and vision have been considered not just to be honored, but also to rely with her perspective to improve conditions in different environments. She’s been recipient to accolades such as the best Latin American executive of the year, from the Stevie Awards (2010); in 2011 she was the first woman inducted into IAOP’s (International Association of Outsourcing Professionals) Hall of Fame; and in 2019 she was inducted to the Women In Technology - International (WITI) Hall of Fame.

Treviño belongs to elite groups such as the World Economic Forum’s B20 Task Force about ICT and Innovation,

Blanca Treviño

TREVIÑO’S BUSINESSWOMAN PERSONA IS NOT AN OBSTACLE TOWARD DISPLAYING THE NECESSARY EMPATHY TO CLOSE GAPS

and she has taken part in the Woman and Economy chapter of APEC (AsiaPacific Economic Cooperation), among others.

She’s also a board member for Walmart Mexico, Grupo LALA (dairy and related giant in Mexico), the Mexican Stock Exchange, ITESM (her alma mater), the MIT School of Engineering councill, the Kellogg

School of Management (Northwestern University), Harvard Business School and the London Business School.

Treviño’s admittance to what is now known as the Mexican Business Council -to which she’s currently the vice-president- implied the name change of the former businessmen group. She’s also a member of the IBD (Interamerican Bank for Development).

OVERCOMING CHALLENGES THRU TRANSFORMATION

Treviño’s impact on business has taken the work of hundreds of individuals beyond Mexico and the US, it has been instrumental to optimize operations in large organizations both within business as well as government agencies from different countries… To sum it all up, she’s been a factor in bringing people closer in ways that just didn’t seem real when the second half of the last century had just begun. Her efforts and vast quantity of finished projects are more than plain successful business and development at times when a global pandemic seems to tear the world apart, as communications among individuals depend upon cables and antennas to keep any activity running, specially bringing people together.

Treviño’s businesswoman persona is not an obstacle toward displaying the necessary empathy -along with outstanding efforts- to close gaps,

bringing the world closer to places where there is need and there are no ways to come in contact with the rest of the world in a quicker way.

It would be very hard to imagine what reality would look like for companies and countries of any size without empowered businesswomen such as Blanca Treviño, who are able to perceive challenges as opportunities to bring people together, to create links between worlds that at first seemed to have nothing in common. Her vision allows to bring down walls separating different surroundings and to erase limits imposing isolation in a way that solutions come from across every part involved.

Whatever challenges the future brings, it’s pretty sure that come that moment, Blanca Treviño’s prowess and leadership will bring together different forces to deliver significant advances from the less common scenarios.

COVID19 AS ACCELERATOR TOWARD DIGITAL TRANSFORMATION

Digital Transformation had a hand on the helm for businesses in different sectors, but COVID19 pandemic stepped on the accelerator. Companies such as Sopra Steria are creating resources to face a gradual return to regular activities

Written by Mateo Rafael Tablado

It is common knowledge that almost everyone has had to adapt to the pandemic’s consequences as soon as COVID19 practically took over the planet: aside from those considered as essential activities, home office stopped being an exception to become a standard, ditto for homeschooling at every level, eating out turned into a venture onto the outdoors without leaving the yard, and online retail also became common practice.

And now, the same digital transformation we had been experiencing in recent years demands the development of necessary resources to gradually return to spaces inhabited before the pandemic hit.

According to an EFE agency interview with Antonio Peñalver, CEO for Sopra Steria in Spain, digital transformation in most sectors in the Iberian country has taken steps

forward, finding companies in a spot in which they had pictured themselves to arrive four or five years from now.

“There are currently plenty of sectors that just cannot operate without this tech transformation. We’ve arrived at a point that would’ve taken us years to get to in regular conditions. What COVID has done is accelerate in record time the trends that were already latent in our society,” the Sopra Steria executive declared.

RECOVERING PUBLIC SPACES

Sopra Steria is a multinational enterprise in Europe which provides ICT, consultancy and digital solutions to different sectors. With the purpose of creating innovative solutions to counteract COVID and its consequences, the company organized a virtual hackathon among employees in their Spain locations; the AFORUM app resulted from this event,

it monitors private and public spaces by connecting to camera networks, determining a place’s occupancy to let us know if it’s safe or if the amount of people increases the risk of infection, keeping space inhabitants anonymous. Peñalver estimates AFORUM will become available before 2020 comes to an end.

“We are developing this app to make it available to organizations that may consider it useful. We are in the final stage of development,” Peñalver added.

AFORUM’s possible success depends upon infrastructure matters according to each place the app will

“THERE ARE SECTORS THAT CANNOT OPERATE WITHOUT THIS TECH TRANSFORMATION. WHAT COVID HAS DONE IS ACCELERATE TRENDS THAT WERE ALREADY LATENT”

- Antonio Peñalver, CEO for Sopra Steria Spain

become available at, being poised as an ideal resource for smart cities, where there’s access to wide networks of public cameras, which are almost non-existent in marginalized communities in underdeveloped countries.

TAKE A SEAT… AND SOME DISTANCE

Workplaces were not exempt of being subject to a worthy resource which would ease return to offices once a recuperation period from the pandemic starts, since Sopra Steria also developed the “Take a Seat” app, designed to efficiently facilitate return to offices by managing cubicle availability in a way that enough space stands between employees to avoid infections.

“This app eases the return to office space in a safe way. It is working

for us and some of our clients are interested in it,” said the CEO of Sopra Steria Spain, who is in charge of more than 4,000 employees to whom “Take a Seat” is already available.

Even if “Take a Seat” is currently an exclusive app for the Sopra Steria community, it is possible it becomes adapted to other sectors to improve their use of office space.

Peñalver also pointed out that some of the sectors served by the multinational company, such as finance, banks, and insurance -among others- aren’t newbies to Digital Transformation and have already invested in this process.

Another app developed by the firm during the pandemic is a private e-prescription for the local Professional Association of Pharmacists, created last April.

Resource integration and interaction delivering results

DeAcero offers a wide variety of products, serving different business sectors, besides counting with the DeAcero Logistics business unit. The company is a major reference for the industry in Mexico and abroad

Produced by Jassen Pintado

Interviewee: Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics

Grupo DeAcero opened for business more than 70 years ago as a family business started by César M.

Gutiérrez Lozano in his workshop in Monterrey, Nuevo Leon (Mexico). Mr. Gutiérrez expanded his product portfolio, grew his staff and, as decades went by, DeAcero increased its presence nationwide and abroad, becoming a leading company in manufacturing and exports of long steel, wire and reinforcement steel products.

DeAcero has 18 production plants, 21 recycling facilities and delivers 4.5 million tons of steel per year. Since the seventies, DeAcero’s products are sold in Latin America, and during the nineties the company expanded into the USA, supported by its own plants in Houston, Texas and Missouri, as well as its warehouse in Laredo, Texas and 29 distribution centers throughout North America.

DeAcero currently offers the widest range of products for construction and steel

reinforcement, wire rod, steel rod, profiles, angles, beams, canals, wire mesh, trusses, panels, nails, chains, cables, guy wire and a wide variety of fences, bars and wire products for the automotive, infrastructure, energy, hardware, manufacturing, mining, and oil & gas sectors.

EXPERIENCED LEADERSHIP IN KEY POSITIONS

DeAcero’s success results from a series of efforts, optimizations and generations’ work in different areas, and to a large extent from the evolution in its logistics area, which depends on Raúl M. Gutiérrez Durán, a professional with wide experience in the company’s processes.

Gutiérrez Durán is the Global Supply Chain Director for the DeAcero group, CEO for DeAcero Logistics and a member of the Grupo DeAcero’s board of directors. Gutiérrez Durán graduated in industrial engineering from ITESM (Monterrey Institute of Technology and Higher Education), where he graduated with honors. In 2014, he earned an MBA from the Stanford Graduate School of Business (California).

Gutiérrez Durán first joined DeAcero in

- Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics

“We are looking to cover every link in the supply chain in its entirety. We are convinced that focusing beyond costs, an internal collaboration and alignment among our operational areas, and an external alignment and proximity to our clients through an ‘outside in’ philosophy is the right strategy”

TRANSFORMING OPPORTUNITIES TO TANGIBLE BENEFITS

Year Established: Oct/2010

Industry: Consulting

Main Services:

Consulting on the Improvement of Operations and Profitability Growth.

Supplier Profile

Development of three Distribution Centers (DC) covering services in the North, Bajío and Laredo, Tx regions.

Services Included:

Business Case Development supporting DC approval, including: the building site, construction specifications, and operating equipment requirements.

Site Planning Laredo covering the site size and design, positioning of the future building, parking lots, offices and optimal flow of truck traffic.

Layout design including building specifications for height under joists, distance between columns, dock doors, ramps, work areas, positioning of the fixed equipment and inventory.

New Operating Model focused on the management and execution of work processes, cycle times (from receipt to storage, picking to shipping), inventory management and KPIs.

Alignment with WMS Information Systems following the new operating model, support in the preparation of a WMS (Oracle Warehouse Management System).

Implementation and On-Site Training (i.) coordination and validation of the fixed equipment installations, and (ii.) conference room and onsite training at the management and operating level, prior to and following go-live.

Design and Implementation of a Profitability to Serve Model (RDS),

Based on a common platform of information throughout the organization, developed with Deacero´s IT a profitability model covering costs and revenues from production, distribution and sales. With profitability dashboards management has gained visibility on what contributes or erodes the contributions to profit at a SKU, order and/or customer level, as well as by DC, sales channel, region, etc…

Managing Partner: Ken F. Wallett

Webpage: www.kfwconsultants.com

2008 as head of production in one of the company’s wire production plants. “From there, it was all growth and learning at different operative positions until becoming a director in one of our wire production plants. Afterwards, I took my master’s degree, I worked in the Supply Chain area for Apple and returned to DeAcero to become the director of our global supply

chain,” Gutiérrez Durán commented.

Among other activities, Gutiérrez Durán’s position as vice-president of CAINTRA (Chamber of the Transformation Industry of Nuevo Leon) stands out as well as his membership and active partaking in other important associations and groups such as the Horno 3 museum’s Foundation for Education, Science and Technology.

UNDERSTANDING THE MARKET TO OBTAIN THE CLIENT’S SATISFACTION

One key attribute for DeAcero has been the company’s ability to evaluate the different factors involved in order to modify and optimize processes and functions.

“We have divided our understanding of the market to adapt our whole organizational structure and strategies, offering a better service, finding ourselves aligned to our clients’ needs.

We’ve engaged in an important mindset transformation, taking us from thinking processes from the inside-out to go from the outside-in. This frame of thought starts from analyzing the environment to develop transformation toward the company’s core,” Gutiérrez Durán said.

“This drives us to reassess the way we perceive ourselves, the way we perceive our clients, our markets, the way we

“SOMOS”

Total México, with its Lubricants division, becomes a strategic partner for the DEACERO company nationwide, supplying the 35 locations it has for 5 years.

www.total.com.mx

Supplier

Profile Number of Employees:

96,000+

Year Established:

Founded in 1924 under the name of Compagnie française des pétroles CFP with mixed private and French State participation, in 1985 it adopted the name Total-CFP and only Total S.A. in 1991. Following the merger with the Belgian company Petrofina in 1999, the company adopted the name Total Fina. Later it absorbed Elf Aquitaine and from March 22, 2000 it was called TotalFinaElf until on May 6, 2003 it was decided to recover the unique name of Total.

Industry:

TOTAL is one of the largest oil and fuel companies in the world, active in more than 150 countries.

Main Services:

Important actor in the exploration and production of oils and natural gases, refining, marketing, gases and new energies, commerce and chemicals.

Recent Projects:

Bus escuela (an innovative truck that we take directly to the facilities of our clients and prospects to carry technical training on different topics for industries, lubricants for Diesel engines, lubricants for gasoline engines, mining industry, metallurgy, etc., using educational tools and technological ones such as virtual reality and lubricant demonstrations within a didactic engine.

Marie Djordjian, CEO

Webpage: www.total.com.mx

For more information, click aquí

conceptualize investments, processes and our own organizational structure,” the executive added.

Operations in the production, logistics, distribution, transportation and commercial areas have been restructured from an operational territorial organization previously set as a silo, into a channel, segment and attention model arrangement, leaving behind the “one size fits all” model by adapting and customizing work processes to the client’s satisfaction.

Changing these paradigms also brings an intelligent balance between cost and service, optimizing work systems and allowing a better understanding of the market resulting in delivering optimized services.

One of the key strategies has been the deployment of the spoke-hub model in distribution centers with reliable solutions as satellite distribution transfer centers and last mile locations support the strategy and commercial programs, thus increasing our value offer.

COVID19: TAKING CARE OF THE STAFF AND BUSINESS CONTINUITY

The pandemic’s consequences drove Grupo DeAcero into taking timely action, allowing for operational continuity in safe conditions, without compromising its personnel’s health. Outwards, the company and its strategic partners became

closer, developing strategies for mutual support and coverage to comply with health and hygiene regulations. “We also share resources and contents about best practices among our clients, suppliers and the company, benefiting each other’s staff.”

“We operate with more intelligence and

“We’ve engaged in a mindset transformation, taking us from thinking processes from the inside-out to go from the outside-in, to develop transformation toward the company’s core”

- Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics

attention to detail regarding inventory and supply planning. This situation pushed us into creating new processes focused toward the development of new consumables and replacement parts in an effort to avoid any stoppage. Roles and liabilities were restructured in procurement, setting apart

the tactics, strategies and operations and creating a Procurement Intelligence, supported by a centralized negotiation and specialized regional clusters.”

“We are becoming a shared services area in order to disseminate and ensure the fulfillment of the best practices in

procurement and securement in every function of the company’s purchasing area, looking to create win-win conditions with our vendors,” Gutiérrez Durán declared.

SUPPLIERS AND STRATEGIC PARTNERSHIPS

Strategic suppliers sought-after by DeAcero stand out due to timely deliveries, a flexible portfolio, and adaptation capabilities toward the company’s requirements for short lead times. These

partnerships have resulted in win-win strategies, enabling the creation of the alternatives that bring more value for DeAcero. “We’ve searched for an efficient integration of every factor’s management, changing this concept from a supply chain to a value chain,” Gutiérrez Durán explained. “Our supplier evaluation and our Quarterly Business Reviews are focused on improving our productive chain, and becoming more resilient and competitive.”

Supplier Profile

NEW STRATEGY IN TRANSPORT

Number of Employees:

Year Established: 08/12/1987

Industry:

Consulting with more than 30 years of experience in Latin America, generating value as a trusted advisor for the leaders of the region.

Main Services: Management & Business Consulting

Recent Projects:

We have had multiple and varied projects with companies from all industries in the last year, solving everything from inventory strategies, supply chain transformation, supply catalog management, SAP solution implementations, omnichannel strategies, customer experience, to organizational design, change management and more.

Oscar Lozano, Partner Director

Webpage: www.sintec.com

As with other parts of the business, transport was also affected by the pandemic, taking Grupo DeAcero into rethinking its strategies to continue providing timely solutions to clients:

• New intelligent, dedicated and rented schemes were created by establishing strategic agreements with vendors, allowing the company to ensure product conveyance by making the most out of every trip.

• Truck contents and routes were optimized, aligning each trip with a product mix able to satisfy the clientele’s specific needs, according to our salesforce and clients’ agenda.

• Conveyance was reorganized by centralizing operations into central and regional clusters, arranging this area in clear planning, negotiation and management dimensions.

“This allowed us to get to know the conveyance market much better and expand our vendor portfolio,” the executive explained.

State-of-the-art data analysis delivers useful information to the Logistics department, improving decision-making

TECH DEPLOYMENT TO OPTIMIZE PROCESSES AND PRODUCTS

The adoption, digitization and automation of processes have allowed the group to face the conditions of a volatile, hard-fought market in which deployment, training and better use of tech resources result in a great competitive advantage.

The tech and digitization projects DeAcero developed include new resources such as the control tower -providing data visibility and management-, end-to-end, purchase-to-pay (P2P) and order-to-cash

(O2C) processes, along with recurrent and automated analysis of its distribution network, which allow for better strategic decision-making. This resulted in obtaining such advantages as a constant redesign process of the operating logistics network able to bring more agility in attention to the market, which increases predictability when supported by optimized inventory management.

In its behalf, quality in production lines has also included digitized processes, as

well as the warehousing and conveyance processes.

“This allows us to maintain our competitiveness!”, the executive pointed out.

DEACERO LOGISTICS

Strongholds in Grupo DeAcero’s logistics and infrastructure have thrived after DeAcero Logistics (DAL) was created in 2016.

DeAcero Logistics offers train freight,

“This drives us to reassess the way we perceive ourselves, our clients, our markets, the way we conceptualize investments, processes and our own organizational structure”

- Raúl Gutiérrez Durán, Global Supply Chain Director for Grupo DeAcero and CEO for DeAcero Logistics

roadways, cross-border transportation, VAS (value added services) storage, consulting, rentals, international trade, maritime cargo and distribution network analysis. DAL works for different industries and segments, including paper, oil, metalmechanics, containers, specialty and retail, among others.

DAL covers the Americas, Asia and Europe. Since Gutiérrez Durán created

DeAcero Logistics, the company achieves a 110% YOY (year over year) growth supported by its philosophy: placing clients and suppliers first, prioritize service, add value to its entire chain and create synergies able to optimize the use of available resources within and beyond the company.

“DeAcero Logistics enables us to offer competitive products and solutions, providing our clients with complete services,

Grupo DeAcero Manufacturing

helping them focus and thrive in their business,” Gutiérrez Durán commented.

MANAGING THE HUMAN ELEMENT

Staff management principles at DeAcero covers different aspects acknowledging the personnel’s work, offering wages above market average, to begin with. The company offers flexible schedules and open spaces designed with collaboration in mind.

The company’s intranet constantly shares information capsules covering individual achievements, both in the personal and professional spheres. New hires have access to onboarding programs, and all the staff can take place in mentorships and talent development programs. Ongoing inclusion programs highlights female leadership within the company.

It should be noted that in spite of the

“Creciendo Juntos”

“We are becoming a shared services area looking to create win-win conditions with our vendors”

- Raúl Gutiérrez Durán,

Global

Supply Chain Director for

Grupo

DeAcero and CEO for DeAcero Logistics

pandemic, DeAcero maintained all of its staff, no adjustments were made, whatsoever.

Social activities such as taking part in local sports tournaments are supported by the company as are benefits and discounts in determined purchases and services, besides rewarding employees’ children with scholarships. The whole family has a place in DeAcero through workshops and learning activities covering subjects from handcrafts to finances.

“The importance we give to our workplace culture, large family environment and employee satisfaction are key subjects in our staff surveys, the feedback we obtain helps us improve in these areas,” the executive said.

SUSTAINABILITY WITHIN THE COMPANY AND BEYOND

Efforts by DeAcero in contributing to society are well beyond business and commercial purposes. DeAcero is the largest recycler in Mexico. All of the raw material used by the company is derived from recycled steel, processing more than 3M tons a year. DeAcero is also Mexico’s

first steel supplier whose products are LEED-certified (Leadership in Energy and Environmental Design). Also, total water consumed by DeAcero in every process is destined for reuse, while 98% of waste derived from these processes is recycled for use in other industries.

On its behalf, the DeAcero Foundation has established links with the community through different programs focused on social, health and education matters. On its own and along with other organizations, the DeAcero Foundation has contributed to goals set in the 2030 Sustainable Development Agenda, adopted by the United Nations Organization, through 10 projects aimed at eradicating poverty, 12 to bring hunger down to zero, 39 aimed to good health and well-being, 25 for access to quality education, 3 for gender equality, 7 for decent work and 18 to reduce inequality. The foundation also supports 2 other projects for responsible consumption and production, 1 climate action project, 4 for peace and justice-strong institutions and 101 partnerships to achieve these goals.

Since Gutiérrez Durán created DeAcero Logistics, the company achieves a 110% YOY growth supported by its philosophy: placing clients and suppliers first, prioritize service, add value to its entire chain and create synergies able to optimize the use of available resources within and beyond the company

CHALLENGES: A NETWORK ABLE TO INCREASE THE VALUE OFFER FOR CLIENTS

The current conditions in every market bring along different challenges, such as volatility, possible trade blocs and setbacks. DeAcero sets the following goals facing these factors:

• Integrating and aligning the value chain with a focus on the client. This implies speeding up the supply chain with technology to align and control it by assembling each of its parts, creating a flexible omnichannel network. This results in an integral logistics

network becoming an important differentiating factor.

• Relying on collaboration and management dynamics focused on delivering business results through policies aligned with commercial and service expectations, making the most from logistic locations to offer a wide portfolio of customizable packages and solutions for each industry.

• Increasing digitization in key processes -such as e-business-, through platforms bringing the company closer to its clients.

• Developing the business’ knowledge, technical and personal abilities of every individual involved, guaranteeing the proper development of roles with a focus on adding value for clients, for our integral value chain and our company.

“We are looking to cover every link in the supply chain in its entirety, from purveyors, production facilities, storage, distribution and most importantly, our clients. We are convinced that focusing beyond costs, an internal collaboration and alignment among our operational areas, and an external alignment and proximity to our clients through an ‘outside in’ philosophy is the right strategy,” Raúl Gutiérrez Durán, Global Supply Chain Director for the DeAcero group and CEO for DeAcero Logistics finalized.

PETROPERU: on the road to compete globally

Competition in the domestic fuel market thrusts PETROPERÚ toward high efficiency, taking the state-owned subsidiary into becoming not only the most important company in the oil & gas sector, but also nationwide

Written by Mateo Rafael Tablado

Produced by Jassen Pintado

Interviewee

Carlos Barrientos, Gerente General de PETROPERÚ

The oil & gas and energy industries in Peru are highly complex due to the domestic and international competition level and also regarding evolution in standards and production, among other aspects. PETROPERÚ thrives in this scenery, leading the way in imports and fuel markets, becoming the most productive and important company nationwide.

In 2019, PETROPERÚ reached a 44% market share in the liquid fuel market, domestically, earning a US$394 million EBITDA, more than double the amount earned in 2018, reporting a net utility of US$171 million. The company became able to reach such figures by optimizing costs in acquisitions of raw material and other products, besides cutting expenses, among other factors. The company’s contribution to

the Peruvian state amounted to US$1,593 million.

PETROPERÚ’s competition has driven the company to take such actions as optimizing its offer at affiliated service stations, as well as a new brand placement.

“As I took my current position, I noticed the company had already entered the tier with heavyweight global players in the domestic market. The company’s economic recovery implies modernization to keep up with such a challenge,” pointed out Carlos Barrientos, CEO for PETROPERÚ.

THE RIGHT LEADERSHIP TO TAKE ON COMPETITION FROM THE PRIVATE SECTOR

Carlos Barrientos took over PETROPERÚ in August 2019. Before being named to the top position in the state’s oil & gas company, he worked in the private sector in industries such as logistics,

“The company had already entered the tier with heavyweight global players. THE COMPANY’S ECONOMIC RECOVERY IMPLIES MODERNIZATION to keep up with such a challenge”

- Carlos Barrientos, CEO for PETROPERÚ

industrial machinery, as a consultant and other positions which translated into the experience and prestige that took him to the CEO office in PETROPERÚ. Barrientos earned a bachelor’s degree in business administration at the Pontifical Catholic University of Peru, where he also earned an MBA. Other postgraduate degrees for Barrientos include the Leading in Growth and Profitability course from the University of North Carolina Kenan-Flager Business School and taking part in the CEO executive program from the Kellogg School of Management at Northwestern University.

“Being the CEO for PETROPERÚ is one of my highest challenges, professionally, considering it’s the most important company nationwide, which is under constant transformation toward becoming a world class enterprise,” Barrientos commented.

THE GREAT CHALLENGE OF THE TALARA REFINERY

The current works at the Talara refinery are more than 90% in route to completion. These efforts are led by contractors Consorcio Cobra and Técnicas Reunidas,

both companies share wide international experience in industrial facilities and other refineries.

The Talara refinery, which halted operations from January 2020, once the project entered its final phase before completion, is subject to the following improvements:

• Making the most from raw material. The Talara refinery is about to be introduced to the flexicoking method, a late-generation technology able to turn low-value residues into a environmentally-friendly fuel, thus becoming one of only seven refineries in the world where this process takes place.

• Higher capacity. The new Talara refinery relies on 16 processing units and five auxiliary plants, increasing capacity to 95,000 barrels per day, a significant improvement over the 65,000 per day max. produced by the old refinery.

Talara Refinery

• Sustainability and lesser environmental impact. At the new Talara plant -which will be selfsufficient in terms of power supply-, sulfur particles are to be reduced to less than 50 ppm. The removed sulfur will be used to produce sulfuric acid.

• Health. Fuel desulfurization is projected to bring a very positive, high impact on the environment, resulting in estimated savings by US$300 million annually in treatment for respiratory diseases among the Peruvian population.

“PETROPERÚ is under constant transformation toward becoming a

WORLD CLASS ENTERPRISE”

- Carlos Barrientos, CEO for PETROPERÚ

One more benefit brought by the refinery’s location will be the ability to process crude oil extracted from the Peruvian Amazonia, hence becoming more attractive as a recipient for investments in new oil lots, besides making the most out of the North Peruvian Pipeline.

“The new refinery possesses strategic value for the oil & gas industry. In the medium term, there’s a possibility of conveying crude oil from Ecuador to be processed in Talara, creating synergies both domestically and abroad,” the CEO added.

Reaching the highest global standards is part of the plan of the project to be completed in November 2021. So far there haven’t been any accidents resulting in fatalities or disabilities to any of the near 7,000 individuals involved in this project, working under efficient safety conditions and supported

by 190 health professionals on site.

WORLD CLASS PURVEYORS FOR A WORLD CLASS COMPANY

Operations from PETROPERÚ demand top level resources, such as licensed technology from the most important companies in the industry, worldwide. Banks and specialized companies with international reputation act as consultants for financial matters and social issues are being handled by the company in collaboration with government agencies and speciliazied organizations.

“This kind of support and consultancy wouldn’t be possible if our company didn’t count with skilled staff with enough experience to make the most from the knowledge we obtain from tech, business and social endeavors we are involved with,” Barrientos declared.

TECH SUPPORT IN ALL FRONTS

Speeding up processes through technology is constantly evolving in PETROPERÚ. Resources like SAP are joined by the virtual desk; management duties are sped up through digital signatures, ramping up procedures which formerly took paperwork and now have become digitized, speeding up interactions with suppliers,

clients and citizens, thus supporting integrity, transparency and good corporate governance policies.

The company’s processing plants and terminals throughout Peru are also undergoing a digital transformation and the COVID19 pandemic turned telecommuting into a standard for office staff.

The North Peruvian Pipeline is also subject to upgrades enabling it to transport more fuel in less time

Supplier Profile

Number of Employees: 192 trabajadores

Year Established: 12/11/2016

Industry:

Mantenimiento Plantas Industriales. Reparaciones, Fabricaciones, Montajes Electromecánicos, Limpieza Industrial, Pintado Industrial, Mantenimiento Flotas Pesada y Liviana.

Main Services: Mantenimiento de plantas industriales.

Recent Proyects:

SERVICIO DE REPARACION DE 35 ANOMALIAS POR PERDIDA DE ESPESOR Y 01 BOLLADURA DETECTADA CON EL RASPATUBO INSTRUMENTADO (LIN SCAN) EN EL TRAMO II DEL ONP (OLEODUCTO NORPERUANO)

- SERVICIO PARA RETIRAR INTERFERENCIAS OPERATIVAS EN LAS UNIDADES AUXILIARES, TRABAJOS COMPLEMENTARIOS Y DEL PMRT (PROYECTO DE MODERNIZACION REFINERIA TALARA).

CEO:

Víctor Arturo Cruz Vásquez - Gerente General

Webpage: www.vilocru.com

COUNTERACTING THE GLOBAL PANDEMIC

Before 2019, when different factors were taking oil prices into a downward spiral, plans and operations from PETROPERÚ performed above expectations for the year, rising optimism looking ahead to 2020.

As COVID19 hit with global quarantines, bringing plenty of economic activity to a halt, the company experienced a 70% drop in sales.

Nevertheless, PETROPERÚ stood as an essential activity without any production stoppage, fulfilling every commitment to wholesale clients and service stations. Besides providing its staff of the required consumables to avoid spreading the disease, the company also developed information campaigns and increased medical insurance coverage, guaranteeing attention to COVID19 cases.

“All of this has allowed the company to take a crucial role during the first months of the pandemic and also during the country’s economic recovery. This is an achievement for all of us,” the CEO said.

February 2021

COMMUNITY AND VICINITIES: REFOCUSING PRIORITIES

PETROPERÚ’s nationwide presence through refineries, production plants, station services and the North Peruvian Pipeline brings the company closer to different communities with whom the company has established outreach projects. However, the pandemic resulted in the company refocusing its efforts to counterstrike COVID19 in these communities.

In Talara, where the refinery is being

optimized, the company will donate an entire modular hospital, furnished with the latest technology, including specialized equipment for the disease’s treatment such as ventilators and other breathing aid devices. This facility will be able to host 45 patients, between moderate and critical severity. The hospital is to be run by EsSalud, the healthcare branch for social security in Peru, which is not limited to patients with insurance.

New COVID19 modular hospital for Talara

Other donations include bio-security consumables and test kits, besides engaging purveyors and other oil companies to provide corporate contribution. Aid provided during the emergency is an additional effort to the yearly 3,500 medical appointments for vulnerable populations and campaigns to eradicate dengue, Zika virus and chikungunya.

In other zones of Talara, Iquitos, Ilo, Pucallpa, Villa Salvador and vicinities of the North Peruvian Pipeline, the

company donated non-perishables at the beginning of the pandemic. Other communities such as the Peruvian Amazonas, Loreto and the Datem del Marañón province were benefited with medical attention and other consumables.

The company expects to resume previously established programs for community outreach in more than 100 communities neighboring the pipeline as well as in other native communities once the disease is controlled.

NEW HORIZONS WITHIN THE ENERGY

SECTOR

PETROPERÚ is on its way to a successful run in lot 64 of the Peruvian oil concessions map. Operations in lot 192 are scheduled to begin in 2021 in partnership with companies in the private sector. Meanwhile, the North Peruvian Pipeline is to undergo a modernization process and upgrades in its infrastructure to keep performing

“The new refinery possesses strategic value for the oil & gas industry, creating synergies both DOMESTICALLY AND ABROAD”

- Carlos Barrientos, CEO for PETROPERÚ

as the most important crude oil transport system, from the rain forests to the Bayovar port terminal.

For the long term, PETROPERÚ is exploring possibilities within its current infrastructure to take part

in renewable energy, such as wind and solar energy, intending to power its own facilities and partnering afterwards with the purpose of its commercialization. This may undoubtedly result in a masterstroke, considering

possible affectations to fossil fuels, in a way that highs or lows in oil price don’t affect the company’s capacity to deliver energy nationwide.

ON THE ROAD TO ECONOMIC RECOVERY

After mid-2020, Peru and other markets slowly began the road toward economic recovery. The crude oil price experiences a gradual recovery and PETROPERÚ is resuming projects which had been already underway, such as plant construction in the Ilo, Pasco

PETROPERÚ’s leadership has taken the company to become the main player in a highly competitive market involving global companies

“WE

ARE DETERMINED TO CONTRIBUTE IN ACCELERATING ECONOMIC RECOVERY while keeping strict safety protocols in all our operations. This is what we are committed to as a company and as a nation”

- Carlos Barrientos, CEO for

PETROPERÚ

and Madre de Dios communities, and a signed agreement to export fuel to Bolivia.

After the critical stage in Marc, as quarantines worldwide began, from June and onwards sales increased in 65%, projecting a 92% recovery toward the end of 2020. The necessary adjustments saved

more than $120 million in capital expenditures and $287 million in operational expenses.

“We are determined to contribute in accelerating economic recovery while keeping strict safety protocols in all our operations. This is what we are committed to as a company and as a nation,” Carlos Barrientos finalized.

GEOTECHNICAL ENGINEERING

AND SPECIALIZED CONSTRUCTION WITH SOLID GLOBAL SUPPORT

With a wide presence across Central America, Rodio Swissboring is an outstanding partner for the civil engineering and energy sectors, taking care of specialized tasks in underground construction, maritime engineering and tunneling

Rodio Swissboring started more than 60 years ago, when the company opened in El Salvador as the Swissboring Overseas Crp. Ltd. The company’s history goes back to 1930s Switzerland. After the first projects were completed in El Salvador, the company’s headquarters moved to Guatemala in 1970, and new offices opened in the rest of the Central American countries through the years.

Once in the 21st century, the company’s partnership went through changes, ending up in Soletanche Bachy owning 100% of Rodio Swissboring from 2015 on, with the latter bringing leadership in geotechnical engineering, mining, maritime engineering and specialized civil engineering to the French group’s leadership.

“Since our beginnings, we have taken part in different stages during the construction of the main infrastructure

projects in the region”, said Federico Rosenberg, Regional Director for Rodio Swissboring in Central America, which has also taken part in important projects in other regions, precisely in the Dominican Republic, Ecuador and Mexico.

Rosenberg, a geologist and civil engineer graduated from Texas A&M. “I’ve been part of the group for 30 years. Had my start in Spain holding different positions, from project engineer, engineer in charge of machinery, production manager, CEO at Guatemala and finally as the regional director for the last ten years,” Rosenberg commented.

ENGAGEMENT IN IMPORTANT PROJECTS IN THE REGION

Rodio Swissboring’s involvement along the Central American market through the years has taken place in projects for both the private and public sectors. This market shares plenty of features, but it also presents different conditions, and its constant evolution demands adaptability and versatility.

- Federico Rosenberg, CEO for Rodio Swissboring in Central America

“We have taken part in the main infrastructure projects in the region”

“One of the key aspects to maintain ourselves at the forefront of the market is focusing on our clients’ needs, bringing as many innovative solutions as possible,” the executive declared.

Rodio Swissboring engages in highscale projects such as the Panama Canal, taking part in the canal’s recent expansion and its new third set of locks, as well as laying the

We are a group of investors and experts in the infrastructure sector with the objective of developing and building with strong bonds so that constructions are of great value and forever.

We set our bases to to respond effectively to the great challenges, because we understood that it is possible to believe in an infrastructure at international levels with the current requirements.

Infrastructures so well made, that they last forever.

Visit us at: vitsa.co

Supplier Profile

Number of Employees: 50+

Year Established: 2004

Industry: Construction

Main Services:

Bridge builder specializing in launching mixed configuration superstructures.

Recent Projects:

Superestructura PUENTE 15- VAS.

The project consists of planning the engineering and Construction of the bridge. Scope, assembly, transport of the parts, launching of the superstructure and assurance of the maquila. The typology of “BRIDGE 15”, object of this contract, is of three (3) spans of fifty-one (51), fifty (50) and sixty (60) meters, the ground plan is curved throughout its length following a circular alignment with a radius of one hundred forty-eight (148) meters with a constant longitudinal slope of three point fifteen percent (3.15%) ascending from the abutment identified with number one (1) to abutment number two (2). The cross section has a superelevation of seven point six percent (7.6%) and is designed to be launched from a platform to its final position. Total weight 1490 tons.

CEO: Alfredo Fernandez Valenzuela

Webpage: www.vitsa.co

foundations for the third bridge across the artificial waterway; also in Panama, the company worked in Line 1 of the Panama Metro rapid transit system. In San José, Rodio Swissboring was in charge of the excavation and protection of the basements at the building of the Legislative Assembly of Costa Rica. Also in the Costa

Rican capital, the company laid down the foundations and built the slope protection at the new US Embassy in Tegucigalpa (Honduras); both of these last processes were also performed at the new US Embassy in Guatemala, as the next headquarters for the US in these two countries are currently under construction.

AVANT-GARDE PROCEDURES

Rodio Swissboring has brought to the territory a wide array of procedures and techniques supported by late-generation technology, such as introducing ground improvement to Central America. Ground improvement is becoming a standard procedure in complex grounds, using a proper

technique according to the land’s conditions. Rodio Swissboring relies on support from sister company MENARD when a plot of land must undergo such a specialized process. MENARD, also a Soletanche Bachy company, is a global leader in ground improvement and is constantly investing in avant-garde machinery

and equipment to perform these tasks.

Other specialized procedures also carried by Rodio Swissboring in Central America is tunnel and microtunnel boring and construction, with support from BESSAC, another sister company specialized in these kind of projects, useful for the mining, energy and transportation sectors as well as for public waterworks, to name a few.

PARTNERS AND PURVEYORS: BEYOND MERE COMMERCIAL TRANSACTIONS

Machinery, tools and equipment stand out from Rodio Swissboring’s supply chain. The company takes part in projects which demand specialized procedures in construction, mining and the energy sectors, among others; thus requiring unique machinery and equipment with certain features and capabilities, taking Rodio Swissboring into joining manufacturers in their R&D department, engaging with design and upgrades to equipment for required, specific functions.

“We deal with the subsoil and all of what’s below the surface, where conditions are always changing; there will always be some improvement to adapt ourselves to it and

Anchor blocks and soil nailing at the Vía Alterna Sur highway in Guatemala

Anchor pile foundation at Jiboa bridge, El Salvador

Piles and sheetpiling at Miraflores locks in the Panama Canal

Supplier Profile

Number of Employees: 450+

Year Established: 1954

Industry:

Mixto Listo belongs to the Construction Industry, specifically to the production and distribution of ready-mix concrete.

Main Services:

Guatemalan company with more than 65 years of experience in the production and distribution of ready-mix concrete, along with the services associated with its placement. We have been present in the construction of the most important infrastructure, building and housing projects in the country, as well as in the construction of thousands of private projects. We have more than 10 production plants strategically distributed throughout the country to serve all kinds of construction projects.

Recent Proyects:

We take part in the construction of the most relevant projects in the country, such as: Fuentes del Valle Norte, Altos de San Nicolás, Portal San Isidro residential projects; infrastructure projects such as the Quetzal Container Terminal and the new Embassy of the United States of America, among others.

Unit Manager: Astrid Pellecer

Webpage: www.mixtolisto.com

optimize our performance,” Rosenberg summed it up.

PART OF A GLOBAL NETWORK OF MUTUAL SUPPORT

The heralded support Rodio Swissboring receives from other Soletanche Bachy companies such as BESSAC and MENARD, among others, displays the advantages of being part of a solid group with global presence. There is technical and logistic support and plentiful resources, besides relying on a wide network of experts sharing experience, processes and new techniques. On its behalf, the Central American operation of Rodio Swissboring is highly specialized in mining and geothermal exploration and also offers support to other companies in the Soletanche Bachy Group.

“We have a fine-tuned network. Most companies have a specialty in a specific area and support each other,” the regional director commented.

Another advantage shared by every company in the group is that personnel receives specialized training, which is considered a crucial factor for the success of Rodio Swissboring.

“We regularly send our staff either to train based in specific programs in technical or operational areas or in other group companies, thus creating important opportunities for development,” Rosenberg explained.

LINKS TO THE COMMUNITY: EDUCATION AND ENVIRONMENT

Rodio Swissboring’s CSR efforts are focused on programs related to education, a crucial factor for every country’s development.

The company is also developing an action plan with the main purpose of reducing its carbon footprint by 30% before 2030.

“Our global group policy is this important commitment to the environment, which increasingly impacts our operation,” the executive pointed out.

UP NEXT: A WAGER INTO PROJECT CONTINUITY

2021 is foreseen as a very interesting year for Rodio Swissboring, facing different projects both for the private and public sectors which had to be stopped or started during 2020 and which certainly will go on

dywidaggroup.com | ventas.colombia@sistemasdywidag.com

- Federico Rosenberg, CEO for Rodio Swissboring in Central America

Supplier Profile

Number of Employees: 1500+

Year Established: 1865

Industry:

We offer solutions for Infrastructure, Commercial and Residential Construction, monitoring services, maintenance and repair

Main Services: eotechnics. Rock and soil anchoring systems for the stabilization of the soil and its infrastructure Life span management. Maintenance work, monitoring schemes and robotic inspections for each phase of the project.

Recent Projects: Hidroeléctrica Chivor - Colombia. Supply of 84 active ground anchors with DYWIDAG 47 bars with double corrosion protection for the stabilization of partially submerged slopes (1,775 m in total).

CEO:

Matti Kuivalainen,

Chief Executive Officer

Webpage: www.dywidaggroup.com/

during 2021, which means the company will certainly be engaged in infrastructure mega projects for transportation, energy, mining, maritime engineering and tunneling -to name a few-, both on its own and also with support from other Soletanche Bachy companies.

“We foresee 2021 as a very interesting year with a lot of challenges. Our main goal is to become more consolidated in the region and keep taking part in important projects as general contractors,” Federico Rosenberg finalized.

Integrated services offered by Summum go well beyond the energy and infrastructure sectors, gaining more reach day after day. The company has new horizons after establishing a name for itself in Colombia, Mexico and Peru.

In mid-2016, the Tiger Companies business group was rebranded as Summum. The corporation is preceded by successful ventures going back more than 50 years through a series of mergers, acquisitions, partnerships, divisions and other movements as a result of transformations experienced within the energy sector in Latin America along these decades.

The Summum Energy and Summum Projects divisions are deployed along Colombia, Mexico and Peru, serving the energy sector with high demand in the oil & gas and energy generation subsectors through a wide variety of services.

In the same fashion, the company offers engineering services also to mining, infrastructure, construction and other business activities.

“We have focused on becoming stronger

in our business lines. Summum is a young brand supported by different companies’ successful careers; besides the brand’s short time, Summum is already an authority within our sector in the three countries where we operate,” commented company president Daniel Lucio. It was five years ago that Daniel Lucio, a lawyer, took the reins of Grupo Summum (formerly Tiger Companies). Lucio attended Universidad de La Sabana and afterwards specialized in employment law at Universidad del Rosario. Lucio completed an MBA between 2017 and 2019 under a Tulane University (U.S.) program.

SOLID, STRATEGIC PRESENCE ACROSS LATIN AMERICA

Summum’s corporate headquarters are located in Colombia, and the company’s efficient performance resulted in opening offices in Mexico and Peru ten years ago offering some of the company’s

services. Five years afterwards, both offices became able to purvey the complete line of integrated services offered in Colombia.

In the case of the Peru branch, the opening resulted from the company first venturing into a refinery project, and it has

Una empresa que conecta - Summum ¡Porque nosotros lo hacemos mejor!

Summum Energy and Summum Projects offer integrated services from the company’s headquarters in Colombia and also from offices in Mexico and Peru

“SUMMUM IS A YOUNG BRAND SUPPORTED BY DIFFERENT COMPANIES’ SUCCESSFUL CAREERS, SUMMUM IS AN AUTHORITY WITHIN OUR SECTOR IN THE THREE COUNTRIES WHERE WE OPERATE”

- Daniel Lucio, President at Summum

already increased its client portfolio, as it happened in the other locations, growing from design and engineering to ongoing operations such as supervision and operation surveillance, oil conveyance and other downstream, midstream and upstream tasks.

This solid presence provides Summum of strategic locations in the region’s energy market with a workforce above 1,200 employees, resulting in every operation being able to count

with support from all three branches, no matter where the project is located.

“When hiring Summum in Mexico, projects are also supported from Colombia and Peru, and likewise if working at Colombia or Peru. Our entire team is aware of ongoing projects: we share experience, opinions and collaboration from professionals able to contribute,” the executive explained.

The company’s material resources along with an experienced workforce have taken the company to take part in important projects in Colombia and Latin America

OIL & GAS AND MUCH MORE… WITHIN BUDGET

The energy industry would hardly count with a better partner than Summum Energy. This division’s integrated services offer within this sector allows the company to take part in any phase of large-scale projects, and as a result, it has become an authority in the business, involved in Colombia’s most important projects for facility installation, production, and oil & gas conveyance.

On its behalf, Summum Projects and its engineering unit have been involved not only in fossil fuels projects, but in recent

years this division’s experienceds pecialists have also taken part in ambitious renewable energy projects, a new market for this division.

Summum stands out for going the extra mile beyond what contracts stipulate. The company’s thorough understanding of entire operations and processes allow for detection of improvement opportunities.

“We’ve put our money in our engineering unit for operation surveillance, being day in and day out in every project, for supervision, for being on the management aspect of projects. We’ve earned an important position also at this level,” Lucio shared.

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Perfíl de Proveedor

Number of Employees:

Industry: Servicios de Tecnología

Services: Proveedores de soluciones tecnológicas

President: Juan Carlos Arango, Gerente General

Web Page: www.consultoriaorganizacional.com

Global standard compliance from Summum within the different industries it’s involved with, position the company at the same level of the top five companies worldwide, regarding quality, efficiency and operation security, bringing added value to clients at competitive prices.

AT THE FOREFRONT OF DIGITAL SOLUTIONS AND TECHNOLOGY

Summum counts with different types of assets to support oil production, equipment is continuously being renovated and up to date.

The new addition to Summum’s inventory is its Rapid Service Unit, ideal for underground tasks, with the idea of comprising an entire fleet of Rapid Service Units.

In other areas, Summum’s TI department is supported by latest-generation software to operate in the different services the company offers, as working with up-to-date tech resources is a standard for Summum.

SUMMUM INNOVA AND BIG DATA

Integrating new machinery and equipment able to obtain data, with

“OUR ENTIRE TEAM IS AWARE OF ONGOING PROJECTS: WE SHARE EXPERIENCE, OPINIONS AND COLLABORATION FROM PROFESSIONALS ABLE TO CONTRIBUTE”

-

Daniel Lucio, President at Summum

software performing actual analytics and interpretation of this information in order to create solutions able to deliver a better product is a task in charge of Summum Innova.

This area was established in early 2019 and it has brought results already both within company operations as well as in delivering more and better information derived from big data for clients. Also, new apps have been developed to report accurate, real-time data.

“Summum Innova is a new area in charge of managing, stimulating and generating innovation among the entire organization. The idea is to create short-term goals, driving individuals to propose new and improved ways to operate through our resources, through self-generation and co-generation processes able to deliver added value to our clients. Everyone out there working day-to-day in every project is coming up with ideas and creating new opportunities,” said the company president.

The company sets sight in new horizons in Latin America, Canada and the United States

THE IMPORTANCE OF TRAINING

Workforce development is also a very important aspect in Summum. This area sets goals and creates training programs. The training and updates portfolio is wide as resources and methods to impart every training.

In certain areas, the company detects outstanding talent for certain tasks, resulting in employees who master a certain skill becoming trainers to fellow employees. High acceptance of employee-taught training has led to these programs prevailing through the years.

Hours of training per employee are fixed goals in this area. In 2019, Summum accumulated 21,000 hours of training, a 41% increase from 2018. The company also offers the necessary resources for individual self-training programs.

NEW HORIZONS IN SIGHT

Summum still has a lot to offer to the markets in Colombia, Mexico and Peru. Nevertheless, the rest of Latin America and North America are always under radar. A special interest in the Canada and U.S.

market has been raised after engaging in successful ventures in these territories. The company keeps contact with clients in North America, being on the lookout for new opportunities that could benefit Summum Projects, the business group’s engineering unit.

Ecuador, Central America and the Caribbean are also very attractive markets for Summum after witnessing the growth in

the oil & gas industry, with the company’s three main markets in the region being taken care of.

“We have a strong presence in the markets we are set at, and we are also interested in current developments in North America, where we can still add value. We are also watchful of markets in Ecuador, Central America and the Caribbean, Bolivia and Argentina,” Lucio explained.

POSITIVE RESULTS AMIDST GLOBAL EMERGENCY

As it is widely known, 2020 came along with more than a few question marks, most brought by the COVID19 pandemic, forcing businesses to adjust operations as well as expectations.

The company reported $130 million in sales for 2019, its best in ten years; which resulted in setting high goals in revenue and profitability for 2020. But the oil & gas industry worldwide was affected by low prices derived from a decreasing demand. Summum could adjust its goals and is currently on course to a strong finish finance-wise and with double-digit profitability.

“We are currently in a good position. All of the problems are behind; we had to stop, adjust and keep going forward,” the executive said.

Experts at Summum Projects contribute to different sectors, such as infrastructure

BRIGHT FUTURE AHEAD

Moving forward to 2021, Summum has good expectations, foreseeing a 15% to 20% sales increase. There’s excitement about future projects for the company:

• Possibilities for further projects in the United States and Canada.

• Being in the final stage of a tender for a second-generation ethanol fuel production plant in North America, along with other non-

“THE IDEA IS TO CREATE SHORT-TERM GOALS, DRIVING

INDIVIDUALS WORKING DAY-TO-DAY IN EVERY PROJECT ARE COMING UP WITH IDEAS AND CREATING OPPORTUNITIES”

- Daniel Lucio, President at Summum

Besides oil & gas, Summum Energy is also taking part in renewable energy projects

1,300 FOUNDED: 1992

NUMBER OF EMPLOYEES:

INDUSTRY: ENERGY

conventional energy projects, and also being in the final stage of Latin America’s largest oil & gas project, the refurbishment of the Talara refinery in Peru.

• Taking part in an oil & gas storage and conveyance project through pipelines and a power plant in Colombia’s Pacific coast.

• Increase the company’s workforce from 1,300 employees to 1,500 and 1,600 during 2021.

“The last four years we’ve projected ourselves toward accomplishing the goals we set for the last five-year plan: strengthening our business lines within the three territories we are settled in, and substantially increasing our profitability year in and year out,” Daniel Lucio concluded.

Embodiment of innovation and inventiveness

Written by Mateo Rafael Tablado

Produced by David Alarcon

Construction and infrastructure development in Honduras has an important ally in Santos Industria for concrete, precast structures, blocks and aggregates.

Quality

Sfrom the foundations

to

the top

antos Industria was created in 1996 as a building materials supplier, starting with crushed rock and asphalt concrete production. The company derived from the Santos & Cía. group -with more than 60 years in businessand became independent afterwards.

From the ADM 1 model asphalt concrete plant and the first Nordberg crusher to the different creations from its production plants, it didn’t take long for Santos Industria to earn a place in Honduras’ construction sector. The company is certified under local regulations and global standards, such as ISO:9001, besides receiving accolades from efforts in social and environmental matters.

The company operates mainly from its headquarters in Tegucigalpa, and also has locations in Choloma, Choluteca, San Lorenzo and San Pedro Sula.

Through the years, Santos Industria has taken part in very important infrastructure projects in Honduras, including bridges and tunnels nationwide and in the Canal Seco highway, where 162 prestressed concrete beams were deployed, resisting

“HONDURAS

NEEDS SUPPORT IN ROAD INFRASTRUCTURE AND SANTOS INDUSTRIA RELIES ON THE BEST AVAILABLE TECHNOLOGY”

- Delmy Romero, CEO for Santos Industria

recent hurricanes in Honduran territory. The company contributes to the country’s development through an innovative approach, creating a wide array of options to go beyond any limit, led by a resourceful

team and supported by the latest technology in the industry.

“Honduras needs support in road infrastructure and Santos Industria relies on the best available technology,” Delmy

Romero, commented. Romero is the CEO for Santos Industria.

Romero graduated in accounting from the National Autonomous University of Honduras and is currently taking her MBA. Romero has also worked in the telecommunications sector for the Millicom multinational company, where she held different positions in the finance department and led the ERP (enterprise resource planning) design and implementation. She also accomplished successful mergers and IFRS (International Financial Reporting Standards) deployments, having completed courses for purposes of the latter as well as for KPI (key performance indicator) implementations during an internship in Europe. Romero also qualified for the highest honors in the Human Relations course from Dale Carnegie Academy (Australia). Romero enjoys working at Santos Industria as well as sharing the company’s vision, where it didn’t take her long to learn all that is related to the business.

“We are in constant motion, we must possess flexibility and adaptability. I’ve had

to learn from basic principles to complex subjects,” the executive explained.

PRODUCTION LINES

Santos Industria main production lines include:

• Grinding. Processing of volcanic rocks, such as basalt, through different cycles with cutting-edge technology. Minimal capacity is approx. 3500 ft3 per hour. This area produces gravels, granules, sand and other mixing materials.

• Hydraulic concrete. Produced through a hi-tech, computerized process under strict quality standards.

• Asphalt concrete. A 100 ton per hour latest-generation continuous flow production plant delivers the best concrete in the region, processed in laboratories for quality control before distribution.

• Small precast units. The latest technology in the region relies on a minimum capacity of 3,000 units per

“WHAT MATTERS THE MOST IS MAKING OUR CLIENTS FEEL SUPPORTED AND ALLOW THEM TO HAVE A SATISFACTORY EXPERIENCE”

- Delmy Romero, CEO for Santos Industria

hour for production of cinder blocks, cobblestone, split-face block, filler slabs, floor tiles and retaining wall block.

• Precast structures. This flexible production line creates large items for different uses, mainly in infrastructure, such as catch basins, manholes, prestressed columns of any size, column capitals, panels, and ready to use prefab sheds.

All of these products undergo strict testing in a laboratory equipped with the necessary technology to control and validate production processes before being approved by quality control management.

GROWTH DEMANDS MET WITH INVESTMENT

Honduras’ infrastructure development demands companies which are up to the task, Santos Industria has timely foreseen this and is currently working on increasing its production. In 2019, the company opened its fourth block factory in Tegucigalpa, whose minimum capacity is 3,000 units per hour. In 2020 -and

surpassing the consequences derived from the global pandemic-, the company managed to finish a second concrete plant, located also in the country’s capital, relying on a minimum capacity of approx. 1236 ft3 per hour.

“We’ve been updating our machinery and specialized equipment in order to create any product our clients need, thus adding value to our company,” Romero remarked.

SUPPORT FROM TECHNOLOGY

Both operational and management processes in Santos Industria are supported by reliable tech resources.

The customized ERP for this segment speeds cost, inventory and invoicing processes, besides offering up to date financial information, which results in better decision-making.

In the production areas, machinery is computer-controlled and constantly updated, it receives remote support from Europe.

On its behalf, the design and development department upgrades construction and production processes, reducing costs and time, a benefit for clients.

NEW PRODUCT DEVELOPMENT

Among the newest additions to the Santos Industria catalogue, prefab underpasses stand out during difficult weather conditions; these units possess high capacity for stormwater flow, making them more convenient over traditional sewage works, having proved their functionality in infrastructure projects.

Column capitals for girder support have been included recently into the product portfolio as well as prefab sheds, a storage solution created with wall panels, prefab

beams and columns. Santos Industria is a trend-setter in this time and cost-reducing option.

SUPPLY CHAIN: FOCUS ON QUALITY

Santos Industria’s value chain is formed by strategic partners and purveyors capable of meeting quality standards, policies and procedures in a number of operations, making quality the cornerstone from raw material to finished product. These guidelines result in the “intimacy with the client” value proposition.

“What matters the most is making our clients feel supported, that they are not alone, allowing them to have a satisfactory experience with our products and services,” the CEO explained.

BEYOND THE GLOBAL PANDEMIC

As it happened with businesses worldwide, consequences from COVID19 brought Santos Industria a series of challenges which have been surpassed through intelligence and creativity.

The company reinvented itself and

was reorganized from restrictions set by incumbent agencies, achieving continuity in projects and client relationships.

“We’ve learned a lot across the pandemic, we discovered new markets and ways to reach them with the products we’ve been developing and looking to launch during 2021,” Romero commented.

INCLUSION ENVIRONMENT

The human element at work in Santos Industria flourishes in an open communication environment of

collaboration, which allows easy detection for areas of improvement, new ideas and carrying these out with a sum of efforts.

Staff development is a key aspect, achieved through training, access to postgraduate studies, specialization courses and certification.

“The internal motto for Santos Industria is ‘materializing human inventiveness’. Our company’s main trait is our innovation culture, with young, dynamic, skilled talent, ready for multitasking with the idea that anything can be done,” the executive explained.

LINKS WITH THE COMMUNITY

The solid relationship between Santos Industria and surrounding communities through neighborhood associations and churches has resulted in benefits for these populations in the receiving end of building materials donations, logistic

support, street maintenance, reforestation and environmental workshops. The state of public school facilities within these communities reflect the valuable help received from Santos Industria.

Support provided by Santos Industria in these areas is not limited to material goods,

“OUR COMPANY’S MAIN TRAIT IS OUR INNOVATION CULTURE WITH THE IDEA THAT ANYTHING CAN BE DONE”

- Delmy Romero, CEO for Santos Industria

FOUNDED:

WEBPAGE: 1996 www.santosindustriahn.com

INDUSTRY: Construction

but also through the company’s architects’ and engineers’ knowledge.

NEW HORIZONS

Next steps for Santos Industria will increase the company’s distribution reach nationwide through strategic partnerships. New plans are currently in the works with Construmarket, the official distributor.

Other plans include strengthening the market in Southern Honduras, reaching a new customer tier with a new “VIP” product line from the precast production plant, and increasing sales by 20%. These goals are foreseen to be accomplished during 2021.

“We don’t stop dreaming. Part of our vision is to expand across Honduras’ borders,” concluded Delmy Romero, CEO for Santos Industria.