India headquartered, CFS, one of the largest producers of butylated hydroxyanisole (BHA) and tertiary butyl hydroquinone (TBHQ) globally, said the move giving it a 65% in Dresen, bolsters its presence in the Americas.
CFS opened its first North American division, located in Iowa, in April. The Dresen deal, it said, ensures it also has a foothold in Central and South America.
Dresen, which makes antioxidant blends, bactericides, and mold inhibitors for the animal nutrition, pet food, aquaculture, and rendering industries, has been in the Mexican market since 1980 and has shown consistent YOY growth in the past decade, Arturo Davila Cabrera, VP sales, CFS Dresen, told us.
He said the poultry sector is the most robust of all the livestock segments in the region, while demand for pet feed is accelerating significantly.
CFS Dresen includes a plant and sales offices in Mexico as well as a sales presence in Guatemala, Colombia Peru and Brazil.
Supply chain control
Jennifer Igou, vice president of sales for the North America division at Camlin, told this publication recently the company had begun to gain control of the whole production cycle a few years ago from basic raw ingredients to their intermediates and derivatives which either directly form its end-products or are used to formulate its blends.
“We’ve been selling [products] to blenders. Camlin made the decision to be more fully integrated, and closer to the customer, and entered the blending market in India where we’re headquartered, and in Brazil, and [then] the decision was made to move into North America.”
Igou said the value of vertical integration is it enables strict monitoring of quality and supply.