empresas copec's corporate magazine december 2023
No.114 20 years after a reorganization: thinking decades ahead
the "energy revolution" arrives in chile
sme development: a collaborative mission
FUTURE AND HOPE
arauco's commitment to protecting the native forest
new opportunities for copper in peru
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No.114 in today's challenging environment, empresas copec is committed to lead change towards a sustainable future. with a long-term view, we strive to continue building a better country from our role, through the creation of shared value. december 2023 / nO . 114
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conceiving hopes
navigating through the new forces of business transformation
eduardo navarro, ceo of empresas copec, reviews the last term with an eye onto the country's next challenges.
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20 years after a reorganization: thinking in decades
the energy "revolution" in chile
valle frio: from the chilean fields to the world
the company reviews its history, achievements and challenges that have led it to become a chilean company with global reach.
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copec and abastible take specific steps to incorporate green hydrogen into their production processes and thus continue to lead the energy transition.
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a year after nutrisco's entry into its ownership, the company conceptualized its purpose of creating well-being by generating safe and innovative food.
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copec "moved the games" at the pan american and parapan american games 2023
sme development: a collaborative mission
world rally championship: a world3 class race in chile _
the subsidiary sponsored santiago 2023, which brought together more than 9,000 athletes around healthy competition and sportsmanship.
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five executives from ec subsidiaries discussed about the role of entrepreneurship and how large companies can contribute to its growth.
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on the road to address climate change
arauco's commitment to the protection of native forests
new opportunities for copper in peru
empresas copec and its subsidiaries arauco and copec address environmental challenges with a clear strategy to reduce their carbon footprint.
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leonardo maldonado, founding partner of gulliver, boma chile, among others, discusses how companies must broaden their vision to meet global challenges.
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the subsidiary allocates 491,000 hectares for the care and conservation of native forests in latin america.
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copec and arauco sponsored this event, giving it a sustainable and innovative character that respects local biodiversity.
mina justa begins studies for a new underground project that aims to become the second largest in the country.
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driving the forestry business with local talent
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arauco has trained more than 9,000 people in order to address the new demands of the industry and contribute to the development of the communities.
rodrigo huidobro, cfo, analyzes ec's results for the third quarter of 2023, which recorded a loss of us$ 31 million and an ebitda of us$ 609 million.
the company and its subsidiaries experienced important milestones in education, sustainability, innovation, awards and business.
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CONCEIVING HOPES A few days before the end of the year, and as usual, it is time for assessments. To make an analysis of a complex period, because, no doubt, our society is going through challenging times. A necessary reflection is the silence in the streets of Santiago on the night of Sunday, December 17. Once again, Chileans spoke out negatively about a constitutional text. As in all election processes, explanations and interpretations by age, gender and socioeconomic groups are abundant. However, the main sensation that remained is that nobody was celebrating. Probably, there is
_ in the photo: Eduardo Navarro CEO at Empresas Copec.
no reason to celebrate if there is no progress in the issues that divide us, if there are social pains for which we have not yet found solutions, or if we see no interest in reaching agreements, looking at the long term, compromising, prioritizing, making progress in urgent matters. We believe that, if something became clear again after that day, it was the indispensable and urgent need to build broad agreements. Because dialogue and debate in good faith are imperative to solve Chile's needs, which, in recent years, remain pending, with a
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country immersed in a scenario of uncertainties and economically fragile. The country can no longer resist the irruption of agendas that do not seek the collective interest, ignoring our rich diversity of views and sensibilities. We hope that these processes will help us to understand that if we do not agree on a common goal, we simply do not move forward.
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Hopefully we can discard new constitutional adventures and reduce uncertainties, in order to focus on the immediate challenges, which are not few. It is time to move on to more enriching pages in our country's history. Indeed, the Chilean economy is heading for a negative year. This year will be one of zero growth, with activity practically stagnant, amid high interest rates and high unemployment. Economic performance is among the lowest in the last three decades, with many years of growth below the OECD average. In an economy that is not thriving and with the level of uncertainty we have seen in recent years, there is a very unfavorable climate for betting on new initiatives. As we have already said, in a globalized world, capital is mobile and quickly adjusts to liquid scenarios, always looking for favorable environments where to take risks. In this sense, there is an urgent need for signals to encourage activity. For the private sector, the progress of the initiative that seeks to rationalize the so-called "permitology" will be very important, as it will reduce the bureaucratic hurdles and the time it takes for the different entities to approve investment projects. This is key to provide greater certainty to investors and, in this way, reverse the negative data that we saw this year, related to the number of investment project admissions, the lowest in many years.
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“WE BELIEVE THAT, IF SOMETHING BECAME CLEAR AGAIN AFTER THAT DAY, IT WAS THE INDISPENSABLE AND URGENT NEED TO BUILD BROAD AGREEMENTS. BECAUSE DIALOGUE AND DEBATE IN GOOD FAITH ARE IMPERATIVE TO SOLVE CHILE'S NEEDS.”
There is no more time to lose. In 2023, the risk rating agencies reduced the country's long-term outlook from "stable" to "negative". Chile risks losing its international rating precisely because of the weakening of political agreements. We did not see encouraging data in other areas either. In addition to the health and safety crises the country is facing, a few weeks
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ago came to light the results of the PISA 2022 international test, with data that show that Chile has had at least one lost decade in the field of education and that it is still below the OECD average. This lack of progress is an alarming sign that the school system is not providing value to our children. What sense of urgency are we giving to this situation? Have we forgotten that the main engine of a country's development is its education? All this, in the midst of an international context that does not help either. Risk in the world has increased as geopolitical conflicts have worsened, with the outbreak of the crisis in the Middle East, a situation that has a direct impact on global political stability and, of course, on the markets. This stability will be put to the test in a world where more than half of the population will be subject to elections in the next twelve months. The country must rebuild a climate of greater agreements and willingness for dialogue. Chileans want differences to be resolved for the prosperity of all. We need great consensus on the basis of technically rigorous diagnoses regarding reforms that, if not resolved, will only continue to feed uncertainties, such as the tax and social security reforms. Chile cannot afford the luxury of continuing to keep these discussions open, which have been a permanent source of noise during the last 10 years. This decade cannot continue in the same way.
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On the other hand, it is worth remembering that our country enjoys natural resources and comparative advantages that place it in an unbeatable position to lead the energy transition in the world. However, we have recently seen studies that indicate that we have lost our leadership in this area, no longer being the most attractive hub in the world for investments of this type, placing us behind China and India. Therefore, in 2024 it will be key to make the greatest effort to recover the lost leadership, deepening and consolidating relevant progress, such as increasing the weight of renewable generation in our energy matrix, but also giving it a regulatory framework that makes the development of industries such as lithium and green hydrogen, both essential to decarbonize the economy, sustainable in the long term. This, in a context where the world seeks to improve its environmental performance, in light of the recent commitments made at COP 28. Despite the few happy returns this year has left us with, there were instances to highlight and that nourish the hope of meeting each other, such as those sports days that immersed us in a joyful environment that we have not had for years. It was a necessary tonic for the spirit of the country. Likewise, we have seen how Chile's historical institutional soundness and its long-term policies have been yielding results, such as inflation control, which is key to mitigating the impact of economic deterioration on the most vulnerable sectors of the population.
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In 2024, we will be 90 years old as a company. This anniversary brings us to the reflection that, beyond temporary circumstances, we have been able to overcome crises of different kinds: political, social, economic or natural, among others, thanks to a long-term business vision. But, at the same time, we are concerned about the future, because an immobilized country does not prosper. We are completely willing to continue investing and contributing to Chile's growth, betting on the long term to build, from our role, a better country. In the midst of difficulties, we must always find the strength to face different challenges. We hope, then, that next year we will be able to overcome these scenarios. May we promote trust, something so necessary for creating value. Let us hope that this 2024, well-being will find its way into every home in our beloved country and, as I read recently, that we will be able to give Chile a forward-looking narrative that will allow us to conceive hopes.
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COMPANIES MUST NAVIGATE THROUGH A WEB OF TRANSFORMATIONAL FORCES THAT DEMAND A BROADER AND MORE COMPLEX PERSPECTIVE.
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NAVIGATING THROUGH THE NEW FORCES OF BUSINESS TRANSFORMATION Author: Leonardo Maldonado, Founding partner of Gulliver, Boma Chile, Ciudades+B and Corporación 3xi. He has specialized in the acceleration of regional innovation ecosystems, advising 28 cities in several countries in Latin America and Europe. Member of the Responsible Leaders network of the BMW Foundation.
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The speed of these transformations, which today we call exponential, ends up upending the board due to our limited ability to adapt. The famous economist Joseph Schumpeter called this phenomenon of technological disruption "processes of creative destruction", describing how innovations create a lot of value on
Today's business landscape is constantly changing and moving at an unprecedented pace. The era when companies were dedicated to monitoring their industry in order to anticipate potential threats is over. Today, companies must maneuver through a web of transformational forces that demand a broader and more complex perspective. The innovation that will disrupt our industry tends to come from outside it, often driven by emerging technologies that were not necessarily the strength of established players. Faced with this new reality, Boma, a global network that accompanies business leaders from multiple perspectives and disciplines to successfully address the changes that challenge them, believes that it is essential to focus on four critical dimensions that were not necessarily at the heart of the strategy, but are now crucial for the future and sustained growth of companies:
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— 1. technological transformation: an exponential force The rise of technology has not only digitalized our world, but is also reshaping industries, consumer behavior and the very structure of our societies. The digital revolution permeates all our conversations and Generative Artificial Intelligence, according to many experts, could put humanity in existential danger. But digital is just the tip of the iceberg. The biotech sector is making even faster progress. Take CRISPR technology, which promises to revolutionize medicine by enabling targeted gene editing, and which has already produced edited babies before they are born. Or let's consider the fast developments in synthetic biology, which could lead to a new era of sustainable production. We are so obsessed with digital that we haven't had time to look at the biotech transformation.
_ in the photo: Leonardo Maldonado Founding partner of Gulliver, Boma Chile, Ciudades+B and Corporación 3xi.
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— 2. social transformation: empowered citizens and the representation crisis With the democratization of information and unprecedented access to it, there is a significant shift in the power dynamics in society. Digital empowerment means that citizens around the world can voice their concerns and opinions more forcefully than ever before. This rising tide of citizen participation is stressing representative democracies and Chile has been no exception. Given that we live in an era of radical transparency, we can now glimpse in real time the human imperfections of our leaders. This citizen empowerment ends up leaving most of the world's governments with very limited approval rates, giving them very little room to govern. The Representative Democracy that we invented at the end of the French Revolution seems
the one hand, while simultaneously destroying part of the existing value. A historical example that deeply touched us is the discovery of artificial saltpeter in Germany by Fritz Haber in 1909. This breakthrough created immense value for Germany, but simultaneously destroyed the market for natural saltpeter, which was one of the main sources of wealth in Chile. The essential question that arises is: in future disruptions, will we be on the side of value creation or value destruction?
Lithium, which has become a key piece of technological development given digital disruption and electromobility, putting Chile on the map of mining geopolitics, could just as quickly lose its relevance if batteries with alternative technologies lead the next stage of the process. Most industries that were once considered "nontech" now find it imperative to integrate these technological innovations to remain competitive and relevant.
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to be running out of steam and, according to experts, the time is coming to reinvent our local and even planetary governance to allow greater participation.
THE NEW BUSINESS SCENARIO REQUIRES A FOCUS ON FOUR CRITICAL DIMENSIONS THAT ARE NOW CRUCIAL FOR THE FUTURE AND SUSTAINED GROWTH:
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How to carry out this Participatory Democracy or Direct Democracy is something that humanity has not yet been able to solve, but experiments in Digital Democracy and Liquid Democracy have begun to show a way. Additionally, it is necessary to take into account that 50 years ago the world's population was less than half of what it is today, while in the last 100 years life expectancy has doubled. During the same 100 years we have gone from a population with 79% illiteracy to one with only 14%. Exponential changes are not only technological, they are also social, and this second dimension is something that is much more difficult for us to understand, accept and integrate into our strategies.
TECHNOLOGICAL TRANSFORMATION
SOCIAL TRANSFORMATION
BUSINESS TRANSFORMATION
GLOBAL ENVIRONMENTAL CRISIS
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— 3. business transformation: automation, consumer demand and exponential organizations The side effects of technological transformation have led to a renaissance of entrepreneurial drive. Automation, while threatening traditional jobs, also provides unprecedented opportunities for innovation. Couple that with changing consumer demands, driven by social transformation, and companies find themselves at an epicenter of opportunities and challenges.
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Organizations growing exponentially, achieving valuations of more than US$1 billion in less than 10 years, often referred to as "unicorns," such as Airbnb, Uber, Cornershop and NotCo, have disrupted their traditional markets by leveraging assets differently and scaling at astonishing rates. The old handbook of steady, linear growth is outdated. Now it's about leveraging technology and innovative business models to stay competitive in markets with players of exponential growth. The fact that organizations can grow exponentially is no longer considered an anomaly as it was in the beginning (that is why they were called "unicorns"); today we have a deep understanding of the mechanisms that allow them to grow at that speed. Salim Ismail, the first executive director of Singularity University, describes in his book "Exponential Organizations", the 11 characteristics necessary to achieve this. In no case is it a question of transforming all our companies into unicorns, but we can learn from the lessons they have given us.
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A CLEAR, DEEP-ROOTED AND INSPIRING PURPOSE CAN BE THE STEERING WHEEL THAT ALLOWS THE COMPANY TO 11 NAVIGATE IN THE _ MIDST OF THESE TUMULTUOUS TRANSFORMATIONS, WITHOUT LOSING ITS DIRECTION AND WITH STRONG SUPPORT FROM MARKET FORCES.
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An example of this is the national company Karün, which is already selling its products in much of the world. Karün's proposal is to take plastic and scrap pollution and transform it into eyeglasses, which means that the more eyeglasses they sell, the more they will decontaminate the planet and, most importantly, the waste is collected by the locals of Patagonia, cleaning their environment while improving their income and quality of life in the process. A vision like Karün's ensures that its millennial consumers not only buy its products, but also promote and even defend the company.
— 4. the fourth dimension: a global environmental crisis Against the backdrop of these three profound transformations that are influencing business is the pressing environmental crisis. With each passing day grows the urgency to address climate change, resource depletion and ecological imbalances. This situation places companies at a unique crossroads: on the one hand, there is a drive for growth, spurred by technological and business transformations. On the other, there is a call, a moral and social obligation to act responsibly, driven by social transformation and the deteriorating health of the planet.
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— one way of articulating these four forces: purpose According to Ismail's book, of the 11 variables, the one that is non-negotiable is that in order to survive in such volatile environments, companies must have an "MTP" (Massive Transformative Purpose). This purpose ensures that the company's core mission is to achieve a triple impact: an economic impact for its shareholders, a positive impact on the society in which it participates and a positive environmental impact, in line with the great challenges of humanity. A company with a clear and genuine MTP can expect both the market and the public to support and value its success, rather than resist or boycott it.
Another good example worldwide is Apple, which has constantly redefined its Massive Transformational Purpose throughout its history. Initially, Apple emerged as a revolutionary force, challenging the centralized computing paradigms of the 1970s and 1980s. Its iconic 1984 Super Bowl commercial symbolized this
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company has committed to achieving carbon neutrality throughout its business activity and manufacturing supply chain by 2030. With initiatives such as the use of recycled materials in its products and an emphasis on renewable energy, Apple is leading by example in the fight against climate change.
— bottom line: thriving on stress
ethos, depicting Apple as the liberator from a monolithic and oppressive technology landscape led by IBM. In its second phase, Apple took its purpose a step further and focused on empowering creative individuals. With the launch of products such as the iMac, iPod and later the iPhone and iPad, Apple provided tools that unleashed a wave of creativity and productivity, allowing its users to "change the world". This inflection allowed them to give a more personal, more intimate sense of purpose. And today, Apple's MTP has continued to evolve to reflect that the "change in the world" that needs to be accomplished must not only take care of society, but the environment as well. The
The new business landscape is not for the faint of heart. It is marked by tensions between social demands and emerging capabilities. The companies that will succeed in this landscape are those that can skillfully navigate these tensions. This requires embracing change, fostering a culture of continuous learning and being rooted in values that resonate within an empowered global citizenry. If we want to take care of our companies, it is essential to take care of the traditions from which we come, their processes and their values, otherwise we will lose our essence. However, we also need to understand how to connect these traditions with the dynamism of the technological, social, entrepreneurial
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and environmental forces that are shaping the market, and to design a bold but sustainable way forward. A clear, deep-rooted and inspiring purpose can be the steering wheel that allows the company to navigate in the midst of these tumultuous transformations, without losing its direction and with strong support from market forces to sustain its relevance and flourishing.
THE COMPANIES THAT WILL SUCCEED ARE THOSE THAT CAN 13_ SKILLFULLY NAVIGATE THESE TENSIONS, FOSTER A CULTURE OF CONTINUOUS LEARNING AND THAT ARE ROOTED IN VALUES THAT RESONATE WITHIN A CITIZENRY.
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SINCE 2003, EMPRESAS COPEC S.A. HAS OPERATED AS A FINANCIAL HOLDING COMPANY, CONSOLIDATING THE DIFFERENT BUSINESSES WITH AN INNOVATIVE VISION AND A LONG-TERM VIEW.
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empresas copec:
20 YEARS AFTER A REORGANIZATION: THINKING IN DECADES Since its creation, the investment holding company has evolved in different ways, strengthening its core activities, entering new business areas, seeking innovative ways of doing business and promoting the development of Chile and the countries where it operates. Today, Eduardo Navarro, its Chief Executive Officer, tells us about the history and evolution of the Company in its last two decades of existence.
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— the origin of a new structure "It was the natural decision". This is how Eduardo Navarro describes the origin of Empresas Copec holding, where he has been CEO since 2003. At that time, Copec (Compañía de Petróleos de Chile S.A.), a company focused on fuels and lubricants, was also the owner of different businesses, most of them unrelated to the energy industry, such as forestry, mining or fisheries. Faced with this scenario, its board of directors decided to structure a new entity, an investment company that would ultimately consolidate all the other companies. The main objective behind this reorganization was to obtain a clearer vision of the financial and strategic situation of each of the businesses, with their cash flows, debts, profitability and trends. This would allow for better management, as well as the possibility of evaluating future partnerships and outlining optimal growth paths for each
_ in the photo: Eduardo Navarro and Roberto Angelini on the cover of Revista Gestión Magazine, October 2003.
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area. All of this would also facilitate the delivery of information to investors in a more orderly manner. Thus, a new company was created, today called Copec S.A., that became the subsidiary in charge of continuing the liquid fuels and lubricants business, which until then was developed by the parent company, that changed its name to Empresas Copec S.A., the holding that today groups companies such as ARAUCO, Terpel, Abastible, Colgas, Duragas, Orizon, Nutrisco or Marcobre, in addition to the aforementioned Copec S.A. During this restructuring, some Copec executives and collaborators became part of the holding's team, migrated from their offices on Agustinas Street and, together with new members, settled in the district of El Golf. At that time there were no more than 15 people, but, over time, the team grew, their tasks evolved and ended up shaping a company with its own DNA.
_ in the photo: Roberto Angelini, Rodrigo Huidobro, Eduardo Navarro, José Tomás Guzmán, Jorge Ferrando, Cristián Palacios and Sergio Prieto on Revista Capital Magazine, 2007.
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— permanent values Empresas Copec currently consolidates operations in the forestry, energy, fisheries and mining industries, and its assets total US$ 28.4 billion. In addition, considering the Company and its subsidiaries, it has more than 41 thousand direct workers, 34 thousand contractors and 71 thousand suppliers. All of this is a reflection of years of work guided by clear institutional principles. "The Company has a character and a culture that have remained over time, despite the changes in the social environment and the new challenges that we are facing," says Navarro. He adds: "The values that guide the work of the Company and its subsidiaries are undoubtedly marked by the stamp of our controlling shareholder and, at the same time, benefit transversally all the nearly 8,000 shareholders of Empresas Copec." Part of this characteristic is a long-term entrepreneurial outlook, a key factor in the value proposition to investors. This means that its purpose is not to enter a business, make it profitable and sell it quickly. "This is a business group that, when entering a business, is dedicated to managing it, transforming it and increasing its value beyond the financial aspect, understanding
FORESTRY
99,99%
ENERGY
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FISHERIES
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100%
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_ ownership structure of empresas copec as of september 2023
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— going out of chile One of the events that changed the trajectory of Empresas Copec and its subsidiaries was to expand its business beyond Chile, a fact that for Eduardo Navarro was the right decision: "We were very big in our country and we needed to look at new opportunities for growth and diversification. So, it was natural to take steps towards internationalization and to replicate abroad the things we were doing well here." These steps began in 1996, when the ARAUCO subsidiary acquired Alto Paraná, one of the leading pulp mills in Argentina. This foreign investment was followed by many others. "Today,
_ in the photo: Empresas Copec's current executive team.
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that these processes do not happen overnight," says the executive. Being leaders is another of its principles: "Innovation is a strategic axis that is at the core of our management approach. The key to success lies in staying at the forefront and offering experiences, services and products of excellence that meet people's and the environment's needs, which requires constant evolution. To lead consistently requires challenging the markets and having a permanent innovative spirit," explains Navarro. In fact, he adds that, not long ago, he was asked whether, despite being in the market for almost 90 years, Copec could
be an innovative company. His answer is a true reflection of the holding company's beliefs: "Innovation is more than youth and technology. We could not be leaders if we were not always innovating." Another key element in Empresas Copec's culture is to have the will to do things right, knowing that mistakes can occasionally be made and duly excused, but understanding that there must always be a good intention behind every decision. "We strive to distinguish ourselves by trying to do business in the right way, with the utmost integrity in our decisions and activities. That does not mean that we are perfect, because we are people and, as such, we sometimes make mistakes. However, we work in good faith, we want to be a very good partner, citizen and employer. We strive to be a beloved and respected company," he adds.
_ in the photo: Copec's acquisition of Terpel opened the door to a new Latin American market.
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27 years later, the holding company has operational assets in 16 countries, sales in more than 80 markets and a third of its non-current assets are abroad. This allows us to say that we are a Chilean company with global reach," says the executive. Another key investment outside of Chile was the purchase of the Moncure industrial mill by the subsidiary ARAUCO, which was the group's first business deal in the United States, completed in 2012. It was the beginning of a series of successful operations in the forestry sector, which led the holding company, through its subsidiary, to become the largest producer of pulp panels in the United States. These operations include Grayling, a panel plant in the state of Michigan, which is also currently the largest direct investment ever made by a Chilean company in that country. At the same time, while strengthening its presence in the United States, the subsidiary began to make inroads on the other side of the Atlantic through its participation in the Sonae Arauco joint venture, with operations in Spain, Portugal, Germany and South Africa.
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EMPRESAS COPEC CONSOLIDATES OPERATIONS IN THE FORESTRY, ENERGY, FISHERIES AND MINING INDUSTRIES, AND ITS ASSETS TOTAL US$28.4 BILLION. In the energy sector, the Company also took important steps in 2010. The purchase of Terpel opened the doors to a huge market, such as Colombia, and also to Panama, the Dominican Republic, Ecuador and Peru. Copec took its culture of service and customer proximity to all these geographies, having achieved significant operational and financial improvements to date. Years later, this incursion would be complemented with the purchase of all Exxon Mobil's lubricants operations in Colombia, Peru and Ecuador. Abastible followed a similar path since 2011, when it became the owner of Inversiones del Nordeste, today Colgas, the leading company in the Colombian liquefied gas market. In 2016 it acquired Solgas, in Peru, and Duragas, in Ecuador, both from Spanish Repsol. Abastible has taken its seal of operational excellence,
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innovation and service quality to all of them, with a view to becoming a world-class regional company. Another interesting case is the purchase of MAPCO, a company acquired in 2016 and which operates a network of 304 service stations and convenience stores in the U.S. According to Navarro, one of the main goals behind this operation was to be able to learn in a market as competitive as the North American one, in addition to improving the profitability of the business. Although these objectives were achieved, in 2023 Copec decided to sell this subsidiary. "You have to visualize when an asset may be worth more in the hands of another owner. Understand that sometimes the best decision is to know when to divest an investment. This transaction demonstrates our Company's ability to adapt to the changing environment, while allowing Copec to concentrate its efforts in Latin America, where it has a more robust market position, strengthening its value proposition and leading the energy transition in the region," says the CEO.
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MEXICO
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Another highlight on this path of internationalization was the foray of the Alxar subsidiary into the development of the Mina Justa copper project in Peru, in partnership with the local Breca group. "This was an initiative with excellent attributes in terms of location and efficiency, which would allow us to enter into the larger-scale production of a material that is critical for the planet to achieve a successful energy transition," says Navarro. The company's first years of operation have been highlighted within the industry for its positive operating and financial results. "Today, in addition, interesting options are opening up for the expansion of Mina Justa's operations," he says.
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PANAMA COLOMBIA
Empresas Copec has also sought to rethink its priorities, transform itself and seek new ways of doing business, especially in matters related to its corporate governance and its impact on the social and environmental surroundings, particularly as changes in society have introduced new demands on the business world.
ECUADOR BRASIL PERU URUGUAY
SOUTH AFRICA
CHILE ARGENTINA
_ empresas copec's global presence as of september 2023.
FORESTRY
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OTHER INVESTMENTS
In this regard, Navarro comments: "One of the key aspects of being sustainable is to generate balances that satisfy all our stakeholders: shareholders, employees, customers, partners, suppliers, communities, the environment, authorities, among others. Although our management begins by responding to the trust that shareholders have placed in the
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_ in the photo: Ignacio Sánchez, Michelle Bachelet, Roberto Angelini and Alfonso Gómez at the Inauguration of the UC Anacleto Angelini Innovation Center, June 2014.
administration, part of it consists of ensuring these balances, which, in turn, give much greater stability to what we do." In addition, the executive explains that this is also related to an evolution in the emphasis shown by the society, which is picked up by directors, executives and collaborators: "The board has maintained the same culture, but the priorities of the issues have changed and we want to be a profitable option in the long term and always in tune with all our stakeholders". Finally, he adds that "before, we explained hard financial and operational data to investors. Today they also want to know how decisions are made and who is impacted by them."
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In 2002, Empresas Copec entered into a partnership with Pontificia Universidad Católica de Chile, which gave rise to the Copec-UC Foundation. For more than 20 years, they have successfully promoted applied research, providing answers to problems faced by society, with the support of the Company's senior executives.
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Conducting its activities with this approach has earned the holding company several awards, such as having won for five consecutive years the "La Voz del Mercado" award, given by the Santiago Stock Exchange, the Chilean Institute of Directors and EY. "The progress in corporate governance issues has been enormous, thanks to the work of many, and it has been reflected in policies that seek to strengthen a culture of good practices and transparency, which we try to spread throughout the group of companies. In short, we seek to be a group of diverse activities, but with a single culture," says Navarro.
— transforming countries and people The way the holding company does business has led it to partner with different social organizations and promote multiple initiatives. "In the group there is an interest in leading the markets where we have presence, but there is also a vocation to commit to the great challenges faced by the countries and to get involved with institutions dedicated to issues such as education and innovation, among others," says Navarro.
_ in the photo: Mina Justa represents the debut of Empresas Copec and its subsidiary Alxar in large-scale mining.
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_ in the photo: Executives from EC and subsidiaries at Colegio Juan Francisco Fresno in Puente Alto at a day of master lectures, November 2023.
Also, with the aim of promoting sustainable development, in 2014 was inaugurated the UC Anacleto Angelini Innovation Center, a space in the university open to companies and entrepreneurs, in order to promote the creation of strategic partnerships dedicated to the research and dissemination of scientific progress.
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"BEING PART OF A GROUP LIKE THIS GIVES US THE OPPORTUNITY TO GENERATE IMPACT FROM THE MACRO TO THE MICRO LEVEL. SOMETIMES WE CAN TRANSFORM COUNTRIES THROUGH LARGE INVESTMENTS, BUT SOMETIMES WE CAN ALSO CHANGE THE TRAJECTORY OF A PERSON'S LIFE AND THAT OF HIS OR HER FAMILY," SAYS NAVARRO.
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In the housing area, the holding company, through Copec, has been a shareholder of Elemental since its creation. This architectural firm, led by Alejandro Aravena, has been recognized worldwide, among other things, for its social housing models. The group's subsidiaries, as a reflection of the EC culture, have also promoted several programs linked to people's quality of life and work with communities, such as the ARAUCO Housing Program, Bosque Abierto, Chile Tur-Copec, Copec al Servicio de Chile, or the Acerca Redes Foundation. On the other hand, Empresas Copec has always taken a special interest in educational initiatives. Eduardo Navarro explains: "Chile has many tasks, but I believe that the focus has to be on education. This requires resources, but it also requires management, enthusiasm and vocation, and there is an involvement in the group that goes beyond helping to finance this cause." Belén Educa Foundation, Enseña Chile, ARAUCO Educational Foundation, ARAUCO's schools
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of excellence, Viva Leer Program and Terpel Foundation are some of the educational institutions that the companies have promoted and developed projects with. One of the instances that inspire most motivation and pride in the Empresas Copec team is the Mentoring Program with Belén Educa, which has been carried out annually since 2009, and where about 50 executives from the Company and its subsidiaries meet monthly with senior high school students to accompany and advise them in relation to their professional careers.
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— next steps "Given the size of the Company, our areas of activity, our strengths and values, and observing the challenges we face as a society, we believe that Empresas Copec has an important role to play in building a better future for current and, above all, future generations," says Navarro. In this regard, he points out that during the last few months the board of directors, executives and employees of Empresas Copec have been working on the development
Given the opportunity to participate in this type of activities, Navarro reflects: "Being part of a group like this gives us the opportunity to generate impact from the macro to the micro level. Sometimes we can transform countries through large investments, such as the recent construction of MAPA, which involve employment, creativity, community development, innovation, science. But sometimes we can also change the life trajectory of one person and his or her family through initiatives such as these Belén Educa mentorships, and the latter, although on a smaller scale, is so tangible that it also generates enormous happiness." _ in the photo: EC has been supporting Enseña Chile in its mission to improve the quality of education in the country for more than 10 years.
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OVER THE PAST FEW MONTHS, THE BOARD OF DIRECTORS, EXECUTIVES AND EMPLOYEES OF COPEC HAVE BEEN WORKING ON THE DEVELOPMENT OF ITS CORPORATE PURPOSE, A PROCESS THAT HAS INVOLVED 22 EXTENSIVE DAYS _ OF REFLECTION, CREATIVITY AND CONVERSATION. of its corporate purpose, a process that has involved extensive days of reflection, creativity and conversation. "We want to share our purpose in the near future, explaining why we do what we do, what motivates us and where we are heading, something that we want everyone around us to know," he concludes.
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MAJOR MILESTONES: Nine decades delivering value
1934
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CONSOLIDATION
EXPANSION IN ENERGY: • Abastible • Sonacol • Lubricants
DIVERSIFICATION: • Forestry • Mining • Energy Distribution • Fishing
ENTRANCE OF ANGELINI GROUPI: • Financial restructuring • Strategic development plan
CREATION OF EMPRESAS COPEC
WORLD CLASS PLAYER:
INTERNATIONALIZATION:
Arauco becomes the world's second largest producer of pulp and panels.
• Expansion of liquid fuels to Colombia, Panama, Dominican Republic, Ecuador, Peru and USA. • Montes del Plata pulp mill in Uruguay. • Growth of the panel business in Brazil, Mexico, the U.S. and Europe. • Expansion of the LG business to Colombia, Peru and Ecuador. • Consolidation of the lubricants business throughout Latin America. • Mina Justa world-class copper mining project in Peru.
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witness of the last decades
Only a few can tell the recent history of Empresas Copec as well as Eduardo Navarro, the Company's CEO since 2003. He is the youngest of eight siblings and son of parents from La Rioja, who inherited a strong attachment to Spanish culture. He graduated from Instituto Nacional in 1983 and, at the time of choosing a career, he debated between Journalism, Law, Civil Engineering or Commercial Engineering. Finally, he opted for the latter, because although it had a mathematical component, it also allowed him to explore his
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humanistic interests. He graduated from Pontificia Universidad Católica de Chile (PUC), where he obtained a double major in Administration and Economics. He then decided to extend his studies for another year to obtain a Master's degree in Economics. He says that when he finished university, he was asked to fill in a form in which he answered that he wanted to work in a company like Copec, without imagining the scope that this would have. He began his career at Citicorp and, soon after, he received a phone call to tell him that Felipe Lamarca, Copec's president, wanted to interview him for a job offer in the Company's Research area, something that undoubtedly took him by surprise. The rest is history... When he began his career at Copec, he quickly gained more responsibilities, joined the boards of directors of several subsidiaries and ended up becoming manager of Copec's Research area. In 2003, when Empresas Copec was created, the board of directors decided to appoint him as chief executive officer based on what they described as similar values, talent, experience and extensive knowledge of the group's business.
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The employees who have been working with him the longest are his assistant, Gabriela del Solar; Chief Strategy and Development Officer,
_ in the photo: Eduardo Navarro CEO at Empresas Copec.
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Jorge Ferrando; and Chief Financial Officer, Rodrigo Huidobro. They highlight Navarro's particular style, focused on motivating the best in everyone, leading by example, demanding the greatest effort, doing things well, but, at the same time, maintaining a great closeness and a keen sense of humor. After years of career, Eduardo Navarro has received several awards, such as being in the ranking "The 500 most influential people in Latin America 2022" by Bloomberg Línea and, in 2016, he was chosen Executive of the Year by the consulting firm EY and El Mercurio. On the other hand, he was designated as a Young Global Leader by the World Economic Forum in 2007, and was awarded the UC Commercial Engineering Career Achievement Award in 2021. Recently, he received the "People Committed to Education" award from the Belén Educa Foundation. If you ask Eduardo what other career path he could have chosen, his answer is to become a school principal or go into
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communications, as he did in his school days. Despite his inclination towards the business world, Eduardo has always felt a strong vocation for teaching. That is why he devoted himself to teaching for 15 years at PUC, in parallel to his work at the Company. However, although he no longer teaches, he never abandons his role as a teacher. He believes that working at Empresas Copec he can contribute to the training of employees every day and in every conversation, by enhancing the talent of each one of them, providing feedback on their work and sharing his knowledge. In addition, he continues to contribute to education through his role as director of the NGO Enseña Chile, and as one of the promoters of Belén Educa Foundation’s Mentoring Program within the Company. He has been committed to both institutions for more than 10 years.
Likewise, his passion for communications is reflected today in his concern to be permanently informed about what is happening in Chile and the world, not only from the point of view of the traditional or economic press, but also from where citizens are informed. On the other hand, he has encouraged the holding company to make more visible in the press and social networks what the Company and its subsidiaries are doing, understanding that better communicating the work of an institution is essential for building trust between companies and society.
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DECARBONIZATION IS NO LONGER AN ABSTRACT CONCEPT OR AN EXPRESSION OF GOOD WISHES. TODAY IT IS AN IMPERATIVE.
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THE ENERGY "REVOLUTION" ARRIVES IN CHILE The world is urgently moving towards decarbonization. Our country has all the conditions not to be left behind in this path, where green hydrogen is beginning to take the lead. With innovation, knowledge and partnerships, Empresas Copec and its subsidiaries are taking tangible steps to incorporate this clean fuel in the production processes of different industries.
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Decarbonization is no longer an abstract concept or an expression of good wishes. Today it is an imperative for states, companies and organizations of all sizes and sectors, that understand the urgency of reducing fossil fuels not only in the operation of industries, but also in people's daily lives.
industry. He mentions, for example, high octane gasoline, the introduction of natural gas to Santiago, the first flight with biofuel, the incorporation of solar energy in houses or the inauguration of the first wind farm in Chile.
This conviction led to a process of energy transition that many countries, including Chile, have resolutely undertaken. Thus, numerous processes have already adopted electricity as their main energy source, obtaining it from natural and renewable sources such as water, wind, sun or sea. However, there are sectors that are difficult to decarbonize, due to the nature of their activities. The
chemical industry, metallurgy, aviation and transport are some of them. A new alternative has emerged for them: green hydrogen, which is produced by electrolysis, i.e. the decomposition of water molecules into hydrogen and oxygen, using renewable sources.
_ in the photo: Jorge Ferrando Chief Strategy and Development Officer at Empresas Copec.
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The world is moving in this direction, and our country has all the conditions not to be left behind in this path. In fact, in 2020 the National Green Hydrogen Strategy was launched, a long-term policy that defines the framework for Chile to be among the three largest exporters of green hydrogen on the planet by 2040. Although the road is not an easy one, specific steps are already being taken. This is the case of Empresas Copec, a holding company with a long history in the introduction of new energy products. Jorge Ferrando, the group's Chief Strategy and Development Officer, confirms this, recalling milestones associated with different areas of the energy
"Within this tradition linked to environmental protection and the use of clean energy, when we see that a new product or technology is being developed along these lines, it is natural that we are the ones who try to introduce it to the domestic market," says the executive. He adds that "if the world is moving towards green hydrogen, it makes sense to do so from Chile and there is no reason for Empresas Copec not to be a leading player in this energy transition."
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Copec's great history of innovation and growth is key to face the future, in a scenario dominated by the irruption of new technologies and where environmental issues are critical for the sustainability of the planet. "Hence, we have been working in three verticals, which are New Energies, New Convenience and New Mobility, through Copec Wind, our hub for innovation, venture capital and the creation of new businesses. In the case of green hydrogen, we have studied the entire chain and our initiatives aim to collaborate in the development of this industry from the solutions for our customers, whether in mobility or industrial processes," Ljubetic points out. In this line, Copec has generated knowledge by participating in international studies on the subject and also in the MIT center dedicated to the development of new energies that promote decarbonization. It is
— innovation at the service of the planet The National Green Hydrogen Strategy aims to produce this fuel at the lowest cost in the world by 2030, generating up to US$330 billion in private investment opportunities. To achieve this, the role of companies will be key. This is well known in the subsidiary Copec, which is not only a relevant player in the world of energy, but also "is part of Chile's 'circulatory system', through its extensive network of service stations and industrial customers," in the words of Leonardo Ljubetic, head of the company's Development Division.
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also part of the local system through H2 Chile, a collaborative space between public and private entities and universities to promote green hydrogen in the country. Alexander Wörner, leader of New Energies at Copec, confirms that a fundamental pillar in this path has been the company's innovation hub. "We are committed to green hydrogen and we demonstrate this through different strategic partnerships that support this development, always researching, learning and innovating," he says. Among other specific steps, Wörner mentions the signing, in 2022, of a collaboration agreement with Nuevo Pudahuel and a group of companies, with the aim of exploring the use of green hydrogen at Arturo Merino Benítez international airport. In the mining industry, Copec is part of a consortium that aims to produce 60 thousand tons
_ in the photo: Leonardo Ljubetic Corporate Development and Management Officer at Copec.
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— generating capabilities
"THE CHALLENGE IS TO MAKE A SELF-SUSTAINING GREEN HYDROGEN ECONOMY VIABLE AND A WORTHWHILE INVESTMENT," SAYS MACKENNA.
Faced with an increasingly urgent need for decarbonization, Abastible seeks to contribute with its experience, knowledge and competitive advantages, providing specific solutions to the industrial sector. Tangible steps have also been taken in this subsidiary, aiming to make this type of requirements feasible.
_ in the photo: Alexander Wörnerwith Copec's New Energies team at the launch of the hydrogen station. per year of green methanol, green hydrogen and capture CO2 from a fixed source. And together with Linde, Andes Motor, Buses Hualpén and Anglo American, it implemented the hydrogen station that will supply hydrogen for the first intercity bus powered by this fuel in Chile.
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"With all these investments and partnerships, plus an innovative vision and local capital, we are on a path that bets big on the development of a hydrogen industry made in Chile," emphasizes the leader of New Energies. The manager of the Development Division adds that "for Copec it is essential to accompany its customers in this energy transition,
being close to them, sharing knowledge and facilitating the internalization of new processes and forms of energy."
Ignacio Mackenna, the company's Energy Solutions commercial manager, says that "the goal is to support companies in the productive sector with costeffective decarbonization solutions; therefore, the challenge is to enable a green hydrogen economy that is self-sustaining and a convenient investment." To this end, Abastible works on several fronts. On the one hand,
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THERE ARE SECTORS IN THE INDUSTRY THAT ARE DIFFICULT TO DECARBONIZE DUE TO THE NATURE OF THEIR ACTIVITIES:
CHEMICAL INDUSTRY
AVIATION
METALLURGY
TRANSPORTATION
For them, a new alternative arises: GREEN HYDROGEN
Water is composed of two hydrogen molecules and one oxygen molecule.
Renewable energy generates the electricity that is used in electrolysis.
During electrolysis, the water molecules are separated to obtain hydrogen and release oxygen.
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"WE HAVE EVERYTHING TO POSITION OURSELVES IN THE FIELD AND BE ABLE TO PRODUCE EFFICIENT, SAFE, TIMELY AND COMPETITIVE ENERGY VERY SOON." 31_ information is gathered from customers, options are analyzed, obstacles are assessed and comprehensive consulting is provided before, during and after the design of a project and its start-up. On the other hand, innovation initiatives are developed to implement electrolysis techniques that are more competitive and thus produce hydrogen at lower costs.
GREEN HYDROGEN (H2)
Mobility and solutions through mixtures of hydrogen with liquefied gas or natural gas (blend) are the axes around which Abastible is making steady progress in the short and long term, first to increase capacities and
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then to create production hubs. Ignacio Mackenna stresses that, in all areas, partnerships and synergies are key.
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hydrogen, including technological, logistical, regulatory and cost issues. "Globally, we have been talking about green hydrogen for a short time, and there is still little production. However -he stresses-, we have everything to position ourselves in the field and to be able to very soon produce an efficient, safe, timely and competitive energy."
Thus, together with DICTUC, a first semi-industrial pilot of blend in a thermal system, i.e., with boilers, was formulated. In this project, already approved by the Superintendency of Electricity and Fuels, different tests were carried out, assessing aspects such as the behavior of the burner, the efficiency and safety of the boiler, among others. Alejandro Silva, head of Innovation and New Business at Abastible, says that "we were able to develop internal capabilities that allow us to give our customers the peace of mind that we know how to do things." _ in the photo: Start-up ceremony of the new Green Hydrogen Accelerator 2023, with the participation of Abastible.
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In addition, this year, as part of the Green Hydrogen Accelerator 2023 by the Ministry of Energy, the company supported its customers Caimi SAC and Cervecería Kross in the studies required to incorporate green hydrogen directly into their production processes. These analyses were carried out together with its subsidiary Roda Energía, highlighting Roda's engineering capabilities in the process. "We provided comprehensive consultancy, both technical and regulatory, emphasizing our previous experience in these issues," adds Silva. _ in the photo: Ignacio Mackenna Commercial Manager Bulk and Energy Solutions at Abastible.
Looking into the future, and like Copec, Abastible continues to seek the best energy alternatives for its customers, positioning itself as a strategic partner in decarbonization solutions. At Empresas Copec, Chief Strategy and Development Officer Jorge Ferrando acknowledges that there are still many challenges for the large-scale production of green
_ in the photo: Alejandro Silva Head of Innovation and New Businesses at Abastible.
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Technology Development Committees will also be formed, which will have the role of designing a work strategy in priority areas, in order to generate a portfolio of projects to be implemented over the next four years. These committees will be organized by work axes and will discuss strategic issues of the H2V value chain, such as territorial planning, critical infrastructure, human capital, development and retention of specialized talent, and research strategy, among others.
uc-anacleto angelini innovation center to develop h2v roadmap
The initiative seeks to boost the green hydrogen industry through collaborative work between the public, private and academic sectors. The project, which is expected to last nine months, will have an advisory committee that will prepare an initial diagnosis of the industry and identify opportunities, priority areas and gaps to be addressed, gathering all the progress that has already been made on this issue in the country, such as the National Green Hydrogen Strategy and what has been done in the business world and academia.
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valle frío:
VALLE FRÍO OFFERS A COMPREHENSIVE AND INNOVATIVE SOLUTION, WITH A SPECIAL FOCUS ON PRODUCT SAFETY.
FROM CHILEAN FIELDS TO THE WORLD A year after Nutrisco's acquisition, Valle Frío, focused on the production and export of berries and other frozen fruits, has had a promising performance, with sales projected to reach close to USD 80 million this year. During this period, the company conceptualized its purpose of "creating wellbeing by generating safe and innovative food from the fields to the world."
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Imagine a person living in Los Angeles, Chicago or New York. The person is concerned about the quality of the nutrients consumed on a daily basis and incorporates fruits into the diet, such as berries, preferably in a smoothie. Then, takes the car and drives to one of the most popular supermarkets in the United States; it can be Walmart or Costco. This person parks, pulls out a cart and goes to the frozen fruit section. The person, who could also be in Seoul or Tokyo, takes it and goes home and prepares to eat a healthy, safe, delicious food that comes directly from the field. What this person probably does not know is that the product bought is Chilean and that its producer is the country's leading exporter of frozen fruit to the United States, the largest market in this sector. It was four decades ago when visionary businessman Juan Sebastián Moreno began to venture into the world of frozen fruit. At that time, he produced one container of frozen raspberries a year. Today, the figure rises to more than a thousand containers a year, always with berries as the main protagonists, but also with other imported fruits, such as pineapples, mangoes, dates, cocoa and dragon fruit, among others. Its main facilities are in Curicó and Angol. In this regard, José Pedro Moreno, Valle Frío's general manager,
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comments: "We offer a broad and innovative solution for the frozen fruit category, with a special focus on product safety. We are integrated from the field, which is very important, and what we offer is to reach the final consumer anywhere in the world with a Chilean product of high added value." Since July last year, the company has had one capital increase that already reflects in its results: at that time, Orizon entered into Valle Frío's ownership, and today, as a result of the subsequent division of Orizon, Nutrisco - a subsidiary of Empresas Copec - owns 65% of Valle Frío's shares. A little more than a year after this milestone, Moreno says that the change has been very positive: "The beauty of the business group is that it brings a lot to the table, but at the same time it has allowed us to continue working in the way we had been doing. That also acknowledges that we were doing things right."
_ in the photo: José Pedro Moreno General Manager at Valle Frío.
Figures speak for themselves: in 2021 they sold USD 33 million; USD 55 million in 2022 and, by the end of 2023, they are expecting between USD 75 and 80 million. Forecasts for 2024 are close to USD 100 million in sales. "When we drew up the economic model to show the group, we knew the direction we could take by having a partner with stronger shoulders and who would also help us in all operational
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— the world at hand
matters. Although we are doing very well commercially and also on the production side, we needed, for growth, to continue improving practices, and to have support in sustainability and investment matters, among others," he explains.
What did Nutrisco see in Valle Frío? Rigoberto Rojo points out that, in the first place, they had a differentiating and innovative value proposition. In addition, they had export potential, thanks to the frozen format, which is a global trend today. A third factor that stands out is that their business was focused on a sector defined as strategic by Nutrisco: frozen fruit. In terms of market share, there was still a lot of room for development, both in Chile and in
Rigoberto Rojo, Nutrisco's general manager, agrees with this view, noting that Valle Frío was positively impacted by having a larger partner by its side, with extensive capabilities in areas such as finance, operations, sales and corporate governance: "A support that is not only economic, but one that makes you feel you have the capability to take on new contracts or make larger purchases.
"WHAT WE OFFER IS TO REACH THE END CONSUMER ANYWHERE IN THE WORLD WITH A CHILEAN PRODUCT WITH HIGH ADDED VALUE," SAYS MORENO.
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This reinforces the confidence of clients, who receive optimum service," he says. José Pedro, for his part, emphasizes that they have experienced an internal growth, which has been enhanced by the link to a solid group, with a long-term project that allows them to enter a health food category with a view into the future.
_ in the photo: Rigoberto Rojo General Manager at Nutrisco.
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SALES FORECAST VALLE FRIO:
1980
1 CONTAINER
33
US$
FROZEN RASPBERRY
2022
1.500
MILL.
2021
55
CONTAINERS
US$
MILL.
2022
75
+US$
MILL.
2023
100
US$
Main facilities are located in Curicó and Angol.
MILL.
2024 FROZEN BERRIES, PINEAPPLE, MANGO, DRAGON FRUIT AND PEACHES
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the United States and Asia, leveraged on the quality of the products. "The other thing that seemed very interesting to us were the partners, a traditional family from the world of agriculture, with good management capacity; hardworking people, with a long-term vision, with interests aligned with those of Empresas Copec and Nutrisco regarding the way of doing business, with a commitment to continue investing," emphasizes the industrial civil engineer.
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Indeed, José Pedro Moreno explains that plans for the future have been strengthened with the arrival of Nutrisco. The idea is to be able to broaden its international focus and increase its participation in Asia, since the United States represents more than 80% of its exports today. As for the local market, where sales represent about 3%, the goal is to grow by at least 30% to 40% in 2024. "In addition, an investment of USD 8 million was made this year, which allowed us to grow production capacity by 50%. In fruit storage, meanwhile, we increased capacity by 35%, with a new 3,600-position chamber," says the executive.
— companies with purpose _ in the photo: Valle Frio plant in Romeral, Maule Region, Chile.
Defining a purpose is key for a company, as it conceptualizes what motivates its existence and summarizes what the organization and those who work in it wish to achieve for their well-being and that of others. During 2023, both Nutrisco and Valle Frío defined their purposes. In the case of the
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former, this is synthesized in the phrase "Better food, better future"; the latter, meanwhile, stated it as "We create wellbeing by generating safe and innovative food from the field to the world." Both converge in concepts such as innovation and continuous improvement. "We sell products that are for final consumption. Each bag is going to be consumed by a family, and these are finished products, so they must be safe: they must not have any problem, any person must be able to open that bag and eat them; it must be healthy fruit. For us it is very important that what we sell is a safe and high value-added food," says José Pedro when he delves into the purpose of Valle Frío, which, although it was drafted this year, has always been implicit throughout time. Meanwhile, Rigoberto Rojo points out that the "Better food" section of Nutrisco's purpose refers to the decision to always optimize food: "It is a permanent search, through innovation, to improve the food industry. Our main challenge is to develop products that are better than those available today." The "better future" has a
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double component: on the one hand, to provide people with a better quality of life thanks to the attributes of food. On a more general level, it refers to a way of doing business aligned with ESG (environmental, social and governance) principles.
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_ in the photo: Valle Frio has more than 200 formats for its products.
Reflecting on the medium and long-term challenges, Rojo, who chairs Valle Frío's board of directors, points out that the focus is on increasing participation and management capacity: "There is still plenty of room for growth, and I have no doubt that we will achieve it, doing things calmly, with control, with quality and always being concerned about customer service. The future is promising; it is a large market,
"VALLE FRIO CAN STILL GROW A LOT, AND I HAVE NO DOUBT THAT WE ARE GOING TO ACHIEVE IT, DOING THINGS CALMLY, WITH CONTROL, WITH QUALITY AND ALWAYS WORRYING ABOUT CUSTOMER SERVICE," SAYS ROJO.
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where Chile has a smaller share in the United States, with a differentiated and value-added product, that has wide coverage in supermarkets. But basically, things are being done well, mainly in terms of safety, quality and innovation in the world of fruit mixes, in addition to mono-products." For his part, José Pedro Moreno emphasizes
that Valle Frío maintains its identity as a family company, very close to the people, "but with all the upgrade given by being part of this group, which has been very flexible in maintaining the identity of a family company, from the area, close to the people."
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COPEC "MOVED THE GAMES" AT THE PAN AMERICAN AND PARAPAN AMERICAN GAMES 2023 "Santiago 2023" was the phrase that was read from the sky and was assembled with hundreds of Copec umbrellas at the National Stadium. The subsidiary was the official sponsor of this significant sporting event, which took place between October 20 and November 5th, bringing together more than nine thousand athletes in a spirit of healthy competition and sportsmanship, with 41 countries and 76 disciplines. The Company's stand received thousands of spectators who attended the Fiu Fest, a family event in the heart of the sports complex located in Ñuñoa. Four employees of the subsidiary participated representing Team Chile: Danica Kusanovic, Assistant Purchasing Manager, in Women's Marathon; Francisca Zavala, Project Engineer, in Women's Handball; Frank Feliú, Administrative Assistant, Santiago office, in Paralympic Weightlifting; and Sergio Germain, Digital Development Engineer, in Athletics (men's 4 x 400 relay). Copec, all in, moving the games!
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conversatorio empresas copec:
FIVE EXECUTIVES FROM EMPRESAS COPEC SUBSIDIARIES DISCUSSED THE IMPORTANCE OF SMALL AND MEDIUM-SIZED COMPANIES AS PART OF A VIRTUOUS RELATIONSHIP WITH LARGE COMPANIES.
SME DEVELOPMENT: A COLLABORATIVE MISSION One out of every three start-ups does not survive its third year. However, 51% of jobs in Chile are in their hands. A reality that is not strange to Empresas Copec's subsidiaries, that consider SMEs to be a key part of an ecosystem that is everyone's responsibility to promote.
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— the basis of the problem 98% of companies in Chile are small and medium-sized enterprises, according to data from the Chilean Internal Revenue Service. They are the driving force of the country's economy, but nevertheless, today they live a very precarious situation: one out of every three does not survive its third year of operation and more than half of them must be financed with their own resources. With this in mind, Empresas Copec's subsidiaries have placed supporting the development of these enterprises at the center of their agenda. Each of them prioritizes different elements when discussing a current diagnosis of SMEs. For Allan Carrasco, the main strengths of SMEs are their drive and perseverance: "The great value they have is persistence over planning, so they are people who have a lot of muscle, but
_ summary video of sme's roundtable conversation Juan has guests at his house in the evening for a barbecue. The start time is approaching and he realizes he needs gas for the grill. He has little time, so he decides to call Abastible. In less than an hour his order arrives and Juan manages to meet his friends' expectations. This was made possible by an SME that is part of the subsidiary's value chain. One of the 1,200 that are part of the network of distributors and entrepreneurs who are in charge of delivering the gas tanks to homes. Without this SME, there is no express delivery and no barbecue. An achievement that is possible after 40 years of virtuous relationship.
This is just one example of how SMEs are transcendental in many services that we use every day and that we think are only possible thanks to large companies, when in fact it is a collaborative work. This is a priority issue for Empresas Copec's subsidiaries, which take the development and growth of entrepreneurs very seriously. In a new roundtable for EC Magazine, they discussed this issue, its challenges and opportunities. The meeting brought together Marcela Wulf, Deputy Manager of Public Affairs at Arauco; Julio Vidal, Sustainability Manager at Abastible; Juan Pablo Doñas, Corporate Affairs Manager at Copec; Allan Carrasco, Sustainability Deputy Manager at Orizon, and Andrea Cheer, Corporate Affairs Director at Terpel. The meeting was hosted by Natalia Labbé, head of communications at Empresas Copec.
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ONE OUT OF EVERY THREE SMES DOES NOT SURVIVE ITS THIRD YEAR OF OPERATION AND MORE THAN HALF OF THEM MUST BE FINANCED WITH THEIR OWN RESOURCES.
at the same time it is difficult for them to know the market, to articulate with others, to link up with the ecosystem. One of the big gaps is how they also know the tools that are available to leverage resources from the State, not only economic, but also from different programs."
_ in the photo: Allan Carrasco Orizon's Sustainability Deputy Manager.
Juan Pablo Doñas agrees on this matter, emphasizing that, specifically, the digital divide is a relevant priority: "The great challenge is to obtain support in their growth processes and also to adjust to a market that is increasingly dynamic and complex. Today we are also in a process of technological revolution where digitalization and the use of data is fundamental for any business that wants to prosper."
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Ultimately, Marcela Wulf says: "There are still gaps that hinder the integration of small and mediumsized companies into the supply chain of large companies such as ours. Faced with this situation, companies must make an effort to create supportive conditions that encourage the continued growth of SMEs. A specific example is the implementation of protocols aimed at ensuring prompt payment to suppliers, recognized as a crucial element for the financial stability of these companies."
Julio Vidal, for his part, says that access to economic resources continues to be very complicated: "There is not a problem of entrepreneurship, in terms of the need for more entrepreneurs, but their life cycle is very short. They have access to informal and expensive financing, so they do not have good access to credit or working capital. We must add to this the long payment terms that many companies have, which prevent the survival of these businesses." Andrea Cheer agrees with this, and illustrates the situation in Colombia today: "Many die here because they are unable to adapt to payments that are sometimes paid in 60 or 90 days, so when they pay you in such long terms, it is very likely that your entire cash flow will be disrupted and you will not be able to adapt. Your own clients are condemning you to die. On the other hand, there are certain minimum standards of sustainability that they find hard to comply with, and this is nowadays causing the collapse of suppliers that do not manage to reach those minimum standards. We must demystify to SMEs that being sustainable is expensive."
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— large companies and smes: a longterm relationship Lack of planning, limited access to digital tools and financial resources and the leveling of sustainable standards are the main challenges that interviewees detect for the development of SMEs. A reality that Empresas Copec's subsidiaries are working to reverse. The reasons for this are diverse, but they all agree that entrepreneurs and companies are part of the same ecosystem, which grows when everyone grows.
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In this regard, Julio Vidal states: "At Abastible, we found and developed a shared purpose after two years of work. We are a large company, which is sustained and operates thanks to SMEs. Behind Abastible there are installers, transporters, designers, emergency brigades, service providers and, fundamentally, our network of distributors, who are the most recognizable to the public." For his part, Juan Pablo Doñas says: "Indeed, this bond is built when large companies like ours have a purpose. In Copec's case, where 'we exist to promote the development and mobility of people, companies and the country', with more than 88 years of history strengthening and deepening ties, not only with the communities, but also with the entire value chain that is linked to our operation; the start-ups and SMEs that are born from these bonds are an essential link."
_ in the photo: Julio Vidal Sustainability Manager at Abastible. Allan Carrasco agrees with the above, but warns: "Our view of sustainability with suppliers has to do with them having the capability to provide a good service and, at the same time, having being able to provide the service to others. That is what generating an ecosystem is all about. This is key, considering that there is a risk that we will become their exclusive client with degrees of dependence that are too high."
_ in the photo: Juan Pablo Doñas Corporate Affairs Manager at Copec.
In this line, assessment is key to diagnose challenges and opportunities, and Andrea Cheer emphasizes that Terpel's goal is to achieve a general improvement in standards: "We are conducting a comprehensive review of the supply chain and a characterization of suppliers, because
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_ in the photo: Andrea Cheer Corporate Affairs Director at Terpel.
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we want to bring them in line with the global challenges. This way, we can identify the existing gaps and accompany them in their first steps towards sustainability. We do this through mentoring, together with academia." Finally, Marcela Wulf stresses the importance of establishing long-term relationships between companies and entrepreneurships. In her words: "The key lies in creating an increasingly competitive business environment for small and medium-sized enterprises, capable not only of meeting the needs of our operations, but also those of other companies. This must be achieved without compromising quality and by promoting a triple-impact value chain. In this way, we can support the growth of these entrepreneurs in the communities where we have presence, thus stimulating local economies."
LACK OF PLANNING, LIMITED ACCESS TO DIGITAL TOOLS AND FINANCIAL RESOURCES, AND THE LEVELING OF SUSTAINABLE STANDARDS ARE THE MAIN CHALLENGES FACED BY SMES.
_ in the photo: Marcela Wulf Deputy Manager of Public Affairs at Arauco.
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commitment that reflects in tangible actions
copec: "move your dreams"
orizon: focus on local suppliers
arauco: “play local” The goal of this program is to strengthen local retail, connecting it with the demand for goods and services derived from its operations, leveraging the value chain. Its main lines of work are: local purchase, local business and local lodging. This initiative has led to a 21% increase in purchases from domestic SMEs and a 9.5% increase in purchases in the regions where they operate. In addition, 25 new local ventures were awarded framework contracts with the subsidiary. "We want to develop an increasingly sustainable ecosystem, and we do this with a view to generating shared value," says Marcela Wulf.
Thanks to a coordinated effort, today the subsidiary has more than 50% of its service providers coming from local communities. They are also working on a supplier development plan, based on diagnoses and specific actions, meeting their needs and with the projection of a long-term relationship. On the other hand, Orizon is closely linked to artisanal fishermen, who represent a total of 101 artisanal boats throughout the country (more than a thousand people) and supply 100% of the Coquimbo plant. Finally, its focus is on strengthening management and integration with local suppliers, favoring the development of products with high added value and a virtuous chain for all parties. "We want the work with fishing suppliers to have the best standards in terms of sustainability, care of the sea and safety," says Allan Carrasco.
This program, which is closing its second version, aims to provide development and training tools to entrepreneurs. In its first edition, 160 entrepreneurs from the municipalities of Mejillones, Coquimbo, Quintero and Calbuco actively participated in a process that lasted six months and in which they learned everything from finances to managing their social networks. Of these, 75% managed to increase their sales at the end of the program and 40% formalized their business. "We clearly see that we are an engine for the development and promotion of communities, so we focus on creating useful tools and contributing to the generation of SMEs that have a sustainable projection and contribute to local development and employability," says Juan Pablo Doñas.
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EMPRESAS COPEC SUBSIDIARIES LEAD INITIATIVES TO PROMOTE THE DEVELOPMENT OF SMES, WITH A FOCUS ON IMPROVING THEIR STANDARDS AND BOOSTING LOCAL ECONOMIES.
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abastible: fostering the entrepreneurial spirit The subsidiary has developed projects around entrepreneurs, which are contained in the three recently announced Commitments: lead by example, create awareness and inspire collaboration. In addition, they are working on creating a corporation with other companies and institutions to investigate the reality of entrepreneurship. Finally, their focus is on inspiring others to work together in this mission. About the aforementioned, Julio Vidal states: "one of the most outstanding initiatives is '7-day payment'. We work with 5,000 SMEs as suppliers who have benefited from this policy. To make this possible, we are improving systems, processes and internal procedures. It is an absolute priority."
50 _ terpel: "restoring dreams" This initiative demonstrates the affiliate's commitment to a more equitable and reconciled country in Colombia. The program seeks to promote different areas of support for exconvicts, victims, military and police personnel wounded in combat, and former fighters in their process of reintegration into civilian life. This is done, for example, by generating employment and strengthening their productive capacities. To date, 37 new microenterprises have been strengthened and are more sustainable thanks to this program. "The process is divided into phases, what we seek is to strengthen the business project, to make them aware of their skills and opportunities for improvement in each of the ventures, and for that we make a comprehensive diagnosis of their productive units," says Andrea Cheer.
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world rally championship:
350 THOUSAND PEOPLE ATTENDED THIS EVENT, THE MOST IMPORTANT IN THIS DISCIPLINE WORLDWIDE.
A WORLD-CLASS RACE IN CHILE Copec and Arauco were the main sponsors of this important race, giving it a sustainable, innovative and social approach, respecting local biodiversity and supporting the communities in the area in different ways.
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More than 350 thousand people took part in the World Rally Championship (WRC) Chile Biobío 2023, corresponding to the 11th of 13 rounds of this race. This is the most important sporting event in this discipline worldwide, which takes place in different countries and locations and has already been held for five decades. The competition had not been held in Chile since 2019 and this year, for the second time, our country hosted the event, with Copec and Arauco as the main sponsors. The circuit, which took place between September 28 and October 1, focused on making it a sustainable and carbon neutral event, supporting local communities and respecting the biodiversity of the forests where the
cars raced, which, to a large extent, belong to Arauco. Copec's success in winning the rights to the WRC is the result of long-standing work, as it has more than 20 years of experience in the organization of the wellknown Copec RallyMobil national championship, where it has always focused on innovating in the races and minimizing their environmental impact.
— copec: boosting the sustainable side of the rally For Michael Kerr, head of MotorSport at Copec, the objective proposed for this project is to foster the B side of the Rally. This means generating an impact on the economy through this initiative, favoring and promoting the protection of the environment and local communities. This is in line with its purpose: to promote the development and mobility of people, companies and the country. This year, and based on this goal, different sustainable actions, that go beyond sports, have been implemented to support the community.
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WORLD RALLY CHAMPIONSHIP
13 MUNICIPALITIES OF THE BÍO-BÍO REGION CROSSED BÍO-BÍO REGION
4 _ in the photo: Michael Kerr Motorsport Manager at Copec.
In the environmental area, innovation was introduced with the first 100% electric rally car included in the event and different criteria were established for waste management and recycling, through differentiated containers, promoting a "Rally without garbage." Also, and for the first time, the competitors used a 100% synthetic fuel - not fossil fuel from sustainable sources that reduces CO2 emissions, making it the first global event in Latin America to be zero carbon.
DAYS
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10 HOURS OF TV BROADCASTING
COMPETING TEAMS
$15 BILLION IN RETURN FOR THE REGION
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"WE ARE THE FIRST SUSTAINABLE PARTNER OF THE WRC AND WE MAKE SURE TO PROTECT THE BIODIVERSITY OF THE FLORA AND FAUNA NEAR THE ROADS," SAYS GUTIERREZ. 54 _
— arauco: protecting biodiversity on the road
Together with the organization, Arauco provided 40 monitoring stations and 20 trap cameras in strategic locations, such as biological corridors. To complement this effort, teams of rangers were deployed in the vicinity of the race, along with sound devices to dissuade animals if necessary. In addition, 10,000 native trees were donated.
A large part of the rally's path crossed Arauco's roads, which actively participated in organizing the event and whose commitment to sustainability led them to promote and collaborate with initiatives to protect the ecosystems. David Gutiérrez, Communities Director at Arauco, says that for the forestry company "it is very important to be the WRC's first sustainable partner. That is why, for example, before and during each round, we made sure to protect the biodiversity of the flora and fauna near the roads."
_ in the photo: David Gutiérrez Communities Deputy Manager at Arauco.
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— an event for the community
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This is part of Arauco’s Open Forest program, which was created in 2021 with the goal of promoting different initiatives that allow the community to learn more about the company's landscapes and its activities. Its interest is in promoting the care of the lands, opening them up so that people can engage in recreational, cultural and educational activities, and raising awareness about fire prevention.
Besides being a driving force for local development, holding the WRC in Chile brought people closer to the sport, as the races were completely free and open to the public, attracting thousands of people, including production crews, competing sports teams and the audience itself.
IN ADDITION TO BEING A DRIVER OF LOCAL DEVELOPMENT, THE RALLY BROUGHT PEOPLE CLOSER TO THE SPORT, AS THE RACES WERE COMPLETELY FREE AND OPEN TO THE PUBLIC.
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The 52 competing teams passed through 13 municipalities in Biobío during four days, with more than 10 hours of TV broadcasting, over 13 thousand people reached on social networks and raising more than $15 billion in return for the region, surpassing the results of 2019. Arauco is convinced that responsibly opening up the forest to people promotes its care and protection, since no one can take care of what they don't know. "Our commitment is precisely to invite the communities to discover the plantations, the native forest and the areas of high conservation value that the company has and to promote other uses within the forest," Gutiérrez says.
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On the other hand, and with the same goal of supporting the communities, Copec installed mobile libraries from its program "Viva Leer Copec", whose purpose is to promote reading among children and young people. In addition, Copec visited schools in the area, seeking to bring sports closer to the new generations and to explain the importance of electromobility in today's society.
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"WE ARE PROUD TO CONTRIBUTE WITH TOOLS SO THAT THE LOCAL COMMUNITY CAN PARTICIPATE IN AN ACTIVE WAY, AND AT THE SAME TIME PROMOTE A SPORTING EVENT IN LINE WITH ENVIRONMENTAL CHALLENGES," SAYS KERR.
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Finally, more than 40 entrepreneurs were invited to participate in the local trade fair, in order to contribute to the local economy and showcase their products, such as handicrafts, leather and woodwork.
_ in the photo: Entrepreneurs' trade fair held near the race.
"We are proud to contribute with tools so that the local community can actively participate, and at the same time promote a sporting event in line with the environmental challenges of our planet," concludes Michael Kerr.
_ in the photo: : Copec's Viva Leer stand located at the event's operations base.
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THE COMPANY HAS A ROADMAP TOWARDS DECARBONIZATION, WHICH AIMS TO OUTLINE THE PATH TO ACHIEVE THIS GOAL, ESTABLISHING MEDIUM -AND LONGTERM COMMITMENTS.
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empresas copec:
ON THE ROAD TO ADDRESS CLIMATE CHANGE Focused on the energy and natural resources sectors, and with the goal of creating sustainable long-term value, Empresas Copec and its subsidiaries address environmental challenges with a clear strategy to reduce their carbon footprint. In this regard, the Company has shaped a Roadmap towards decarbonization, thus reaffirming its commitment to a more sustainable future.
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taking advantage of the emerging business opportunities. To this end, the companies use the international methodology Task Force on Climate - Related Financial Disclosures (TCFD) based on: governance, strategy, risk management, objectives and metrics. Thus, the Roadmap is a response to a strategic intention by the Company, whose objective is to have a tool that consolidates and integrates the progress made by the subsidiaries under a common criterion. It also aims to establish medium and long-term commitments.
_ in the photo: Marianne Haramoto Director of Sustainability and Corporate Affairs at Empresas Copec.
One of the cornerstones of Empresas Copec's sustainable management model is to consolidate, through its subsidiaries, a business model that is resilient to climate change by reducing emissions associated with its operations and increasing carbon capture through its plantations. Hence the Roadmap was created reflecting how this issue is being addressed. The Company and its subsidiaries, Copec and Arauco, have been working steadily to face this challenge for more than a decade, aware of the need to anticipate and mitigate the risks posed by this global scenario, in addition to
Marianne Haramoto, Director of Sustainability and Corporate Affairs at Empresas Copec, explains that the commitment to sustainable development is part of the strategy, and that climate action and responsible management of natural resources is a priority area of work that cuts across all business units. "In the Company, we feel that we are called to take a leading role that reflects our spirit to innovate and seek solutions to global challenges, such as the climate crisis. The Roadmap is a tangible plan to reflect progress in the decarbonization of our business
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lines, consolidating our own carbon neutrality and enabling strategic partners, customers and subsidiaries to mitigate their emissions. We are working to deliver sustainable products and services that are in line with the requirements of a world that is going through an energy transition and under a new scenario." Haramoto adds that, at a regional level, there are major developments by the subsidiaries in electromobility and renewable energies. On one hand, copper production generates a key input for the global energy transformation and, on the other hand, forestry assets play an essential role in the carbon cycle, absorbing carbon dioxide and providing more sustainable alternatives in industries such as construction and textiles. Cristián Palacios, Director of Finance and Investor Relations at Empresas Copec, explains that
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ESG (environmental, social and governance) issues have increasingly gained importance for investors. "Today, climate change not only implies a physical risk associated with potential natural disasters, but it is also bringing about a transformation in business models, which is why it is very important for companies like ours, whose businesses are in more environmentally sensitive sectors, to be able to anticipate and adapt. Investors are interested in knowing what the company is doing in these matters, in a tangible way, with objectives, goals and deadlines."
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For this reason, and in line with the global trend, EC is making significant efforts to comply with the highest levels of information and transparency required by the market, the agencies specializing in ESG issues and the main sustainability indexes. In this regard, Cristián Palacios explains that the Roadmap towards decarbonization complements the work of other communication tools and instances, such as the Integrated Report, the new Sustainability section of the website and the meetings with investors, with the participation of the group's Sustainability areas. "All these channels seek to make available in a simple, agile and reliable way the information that the market requires," he says. The next step, says Haramoto, is to reinforce the reporting process, standardizing indicators for all subsidiaries in line with best corporate practices and, together with this, to move forward auditing these parameters under international standards by recognized independent consultants.
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_ in the photo: Cristián Palacios Director of Finance and Investor Relations at Empresas Copec.
FORESTS ARE A CLIMATE STABILIZING FORCE, REGULATING ECOSYSTEMS, PROTECTING BIODIVERSITY AND PLAYING A KEY ROLE IN THE CARBON CYCLE.
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_ in the photo: Nicolás Jobet Communications and People Manager and Climate Action leader at Arauco.
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— forests at the center of solutions Arauco produces renewable natural resources that drive sustainable growth, providing sustainable alternatives to the construction, furniture, paper and textile industries. Furthermore, in line with the third "Carbon Capture" pillar of Empresas Copec's Roadmap, its forestry assets absorb carbon dioxide and transform it into oxygen, thus contributing to
— ec's pillars to reduce carbon intensity The Company has identified three pillars in the Roadmap. The first is "Energy Efficiency and Low Carbon Supply," which groups together initiatives aimed at reducing emissions from energy supply (direct in Scope 1 and indirect in Scope 2). The second is "Moving Towards a Low Carbon Portfolio," which includes indirect emissions from the value chain (Scope 3). Finally, the third axis is "Carbon Capture", which seeks to reflect a positive contribution by capturing atmospheric CO2 and through forest products.
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climate change mitigation. Forests are also a climate stabilizing force, regulating ecosystems, protecting biodiversity and playing a key role in the carbon cycle. Nicolás Jobet, Arauco's People and Communications Manager and the subsidiary's Climate Action leader, explains that "our business is at the heart of the solutions that the planet needs to address the challenges of climate change. Arauco's activity starts with nature, in the forest,
ARAUCO WAS THE FIRST FORESTRY COMPANY IN THE WORLD TO CERTIFY 60 ITS CARBON _ NEUTRALITY. IT CURRENTLY HAS A POSITIVE BALANCE OF -7.2 MILLION TONS OF CO2.
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EMPRESAS COPEC: Establishes a Roadmap towards decarbonization. The goal is to outline the path to achieve this goal, establishing medium and long term commitments. It is complemented by the work of other communication tools and instances such as: INTEGRATED REPORT
SUSTAINABILITY SECTION OF THE WEBSITE
MEETINGS WITH INVESTORS INVOLVING SUSTAINABILITY AREAS
SOME SUBSIDIARY INITIATIVES:
COPEC
ARAUCO
ITS FORESTRY ASSETS FIGHT CLIMATE CHANGE: They absorb carbon dioxide and transform it into oxygen.
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REDUCTION OF GREENHOUSE GAS EMISSIONS
ELECTROMOBILITY
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with the trees. Both our production and protection efforts contribute to fighting this global crisis. In particular, the trees planted for productive purposes are great capturers of CO2 from the atmosphere." In addition to becoming the first forestry company in the world to certify its carbon neutrality in 2020, the subsidiary made new commitments to reduce its emissions by 2030 through production processes that are increasingly environmentally friendly. It is worth noting that Arauco currently has a positive balance of -7.2 million tons of CO2.
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Thus, its climate action plan integrates three main approaches: science-based mitigation of emissions, progressively replacing fossil fuels in production processes and injecting a greater share of clean and renewable energies into the matrix; restoring 50 thousand hectares of native forest, a goal that will be in line with the contributions determined nationally; and circular bioeconomy, where the company has established the goal of zero waste by 2030. To mitigate climate change, the company has placed a focus on sustainable production. It has also promoted the conservation of native forests and their ecosystem services, which act as a buffer against climate risks. In addition, in the timber products business, the company is committed to the recovery of non-hazardous solid waste. Also, for every cubic meter of wood used in construction, one ton of carbon is stored. Finally, the company manages its forestry assets in Chile, Argentina, Brazil and Uruguay under Responsible Forest Management practices, and its production processes are certified under the most demanding environmental, social and economic standards worldwide.
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— leading the energy transition and sustainable mobility Copec's strategy encompasses three action areas: climate change, focused on reducing emissions; circular economy and biodiversity. Each one has goals and metrics, and a permanent monitoring system, aiming at synergies and collaboration networks. The Company is developing a mitigation plan that seeks to directly reduce its greenhouse gas emissions by implementing more sustainable practices and technologies. Regarding its indirect carbon footprint, Copec and its subsidiary Terpel have committed to move towards a more sustainable supply of products and services. In addition, Copec encourages its customers to compensate their own footprint through the purchase of carbon credits.
In this regard, Nicolás Jobet explains: "The world needs wood, but where do you get it from if you don't have a certified plantation? The world will probably go looking for wood in the native forest, impacting biodiversity. But if I have a plantation managed under international certification standards, as is our case, it is possible to offer a safe and sustainable supply of wood for housing, infrastructure, furniture and shelter needs, among others."
_ in the photo: Camila Valenzuela Copec's Deputy Manager of Environment, Prevention and Safety.
COPEC IS DEVELOPING A MITIGATION PLAN THAT SEEKS TO DIRECTLY REDUCE ITS GREENHOUSE GAS EMISSIONS THROUGH THE IMPLEMENTATION OF MORE SUSTAINABLE PRACTICES AND TECHNOLOGIES.
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Camila Valenzuela explains that transportation is one of the company's main sources of emissions: "CO2 tons from transportation represent 60% of direct (Scope 1) and indirect (Scope 2) emissions. For this reason, fleet replacement is one of the main initiatives expected for 2026 in this area."
Under the second pillar of Empresas Copec's Roadmap, "Moving towards a Low Carbon Portfolio," Copec has set a goal for 2050 to promote the distribution and sale of renewable energies over fossil fuels. In addition, to seek new business opportunities in clean energy and to promote electromobility.
She adds that they are also driving the development of low-carbon fuels. "We are working together with our customers on different solutions to support them in their own decarbonization challenges," she concludes.
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of electromobility, Camila Valenzuela, Director of Environment, Prevention and Safety at Copec, explains: "We aim to be the catalyst for things to happen, such as installing electric chargers and having a reliable network to promote electromobility. We have always aimed to be pioneers, leadership is important, and we are working to decarbonize our customers as well, to support the country and to think of solutions for each industry." On the other hand, an example of what Copec is promoting to directly reduce its greenhouse gas emissions is to study the feasibility of replacing the fleet of fuel and lubricant transport trucks with electric trucks, together with the use of renewable fuels in the short term.
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roadmap towards decarbonization
carbon capture a. Capture atmospheric carbon.. b. Store carbon in products.
moving towards a low carbon portfolio a. Lead electromobility. b. Offer solutions based on renewable energies.
energy efficiency and low carbon supply a. Promote greater energy efficiency in operations. b. Supply renewable energy sources. c. Trading carbon credit instruments.
c. Explore emerging opportunities through innovation platforms. d. Produce copper and key inputs for the energy transition.
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ARAUCO'S COMMITMENT TO THE PROTECTION OF THE NATIVE FOREST The subsidiary is committed to set aside 491,000 hectares for the care and conservation of native forests in Latin America, an area equivalent to one-third of the land it owns and manages. This is in line with the 30x30 targets of the Global Biodiversity Framework, which seeks to protect 30% of the planet's terrestrial and marine areas by 2030, emphasizing adequate biodiversity management, as well as sustainable administration of natural resources. This is in addition to other initiatives undertaken by Arauco, such as the process of restoring 25,000 hectares of native forest, with significant progress made in over 8,000 hectares, as well as the preservation of 148 endangered species in the landscapes where the Company has operations.
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mina justa:
JUSTA SUBTERANEA, WITH AN INVESTMENT OF APPROXIMATELY US$ 400 MILLION, IS EXPECTED TO SUPPLY SULFIDE ORE TO THE EXISTING CONCENTRATOR PLANT AND ALLOW FOR THE EXTENSION OF THE MINE'S USEFUL LIFE BY FIVE YEARS.
NEW OPPORTUNITIES FOR COPPER IN PERU The solid backgrounds of Breca and Empresas Copec groups joined forces to manage, through Marcobre, an ambitious copper project in southern Peru. After starting production, Mina Justa began studies for an underground project that aims to become the second largest of its kind in Peru.
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Five hundred kilometers south of Lima is San Juan de Marcona, one of the five districts that compose the province of Nasca, in the department of Ica. Mina Justa, a world-class openpit copper deposit, which began operations in 2021 after overcoming the pandemic and its collateral effects, is located in this major port and mining location. The operator is Marcobre, whose shareholders are Peruvian Minsur and Chilean Alxar Internacional, a subsidiary of Empresas Copec. The former is the mining division of Breca, a business conglomerate with more than one hundred years
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of history, which adds to the more than eight decades of experience of the Chilean holding company. With an investment of US$1.8 billion and aligned with the standards of both partners, Mina Justa contributes to the economic reactivation of its areas of influence and of Peru.
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_ in the photo: Erwin Kaufmann General Manager at Alxar.
Erwin Kaufmann, Alxar's general manager, says that the start was not easy: "Construction began in 2019 and the following year, the pandemic disrupted the logistics of materials, as all the equipment was imported and it was very difficult to get ships and bring in products. The proper care of our personnel led us to generate protocols and isolation areas within the mine. We started selling when restrictions were still in force, so that period was also challenging," recalls the executive.
However, the right strategies were applied and the results were met both on time and on budget. Thus, by 2023, Mina Justa will have produced more than 140 thousand tons of fine copper. Its destination are international traders and smelters in Europe, Korea and China, as well as manufacturers of cables and other final products in the domestic market. The company is looking ahead, "studying projects that could allow us to increase the life span and/or the level of production when the grade of the current deposit falls, which should occur from 2027 onwards," Kaufmann explains. The focus, he adds, is on the future of mining for Empresas Copec and its strategic partners.
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— justa subterránea This long-term vision led Marcobre to take another step: a large-scale underground project, which aims to become the second largest of its kind in Peru. Justa Subterránea, with an investment of around US$400 million, is expected to supply sulfide ore to the existing concentrator plant and extend the life span of Mina Justa by five years. It would also increase current reserves by 30%, with more than 500 thousand tons of additional fine copper.
For Erwin Kaufmann, Justa Subterránea is good news in a context of high expectations for copper as a critical resource for the global energy transition. "This leads us to look for more opportunities and ways to use this metal. It is a product of the future, both because of the growing demand and because of the problems in generating more supply, derived from the low grades in current deposits and the difficulty in managing new deposits in the world," he points out. _ in the photo: Luis Argüelles General Manager at Marcobre.
The project is currently in its prefeasibility stage, to validate the business case. Luis Argüelles, Marcobre's general manager, explains that "at this level we are evaluating technologies that will reduce the carbon footprint, as well as including electric mining equipment progressively." Along these lines, the
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use of seawater is also being considered for the future underground operation, together with other environmental mitigation measures, which is one of the company's priorities. The executive adds that the main challenges for Justa Subterránea are to configure an efficient and profitable project to add significant value to the current Mina Justa asset "and to continue with the next stages of our project management system, to finally execute effectively and efficiently during the construction stage." It will also be a challenge to bring in the right talent with the best skills and then operate both mines simultaneously in a safe, efficient and profitable way.
THE PROJECT IS CURRENTLY IN THE PRE-FEASIBILITY STAGE AND, IF COMPLETED, WOULD INCREASE MINA JUSTA’S CURRENT RESERVES BY 30%.
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Erwin Kaufmann agrees, emphasizing the importance of good planning. "Underground mining is a challenge by itself because of the technological issues, the equipment and systems it requires, and it is complex to do both things at the same time. That's why we have spent a long time studying the details and analyzing each decision," he says.
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MINA JUSTA HAS NOT ONLY BEEN AN IMPORTANT SOURCE OF EMPLOYMENT IN MARCONA, BUT ALSO CONTRIBUTES SIGNIFICANTLY TO LOCAL DEVELOPMENT THROUGH SEVERAL ACTIONS IN AREAS SUCH AS HEALTH, EDUCATION, INFRASTRUCTURE AND GENERATION OF ALTERNATIVE INCOME.
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— committed to the community and the environment Corporate values and social commitment are elements shared by the Breca and Empresas Copec groups, and are reflected in a genuine concern to engage responsibly and constructively with the environment. Thus, Mina Justa has not only been an important source of employment in Marcona, but also contributes significantly to local development through different actions in areas such as health, education, infrastructure and alternative income generation, under the concept of shared value.
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MINA JUSTA
2019 CONSTRUCTION BEGINS
2021
Supply donations to hospitals, preventive campaigns, training for young people and adults, sanitation works, and programs for the development of sustainable tourism are just some examples. "We seek to be a strategic ally in the growth of Marcona, promoting a transparent dialogue in order to build a solid relationship, in line with our corporate purpose and sustainability criteria," says Luis Argüelles, adding that this year Marcobre was recognized as a Sustainable Management Company.
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commitments, especially related to decarbonization. These include reducing 30% of emissions in Scopes 1 and 2 by 2030, and achieving zero net emissions in these same scopes by 2050. Carbon footprint measurements following international standards and external validations, obtaining certifications and continuous improvement of protocols are part of Mina Justa's roadmap to continue growing as a company committed to sustainable development. In this way, the company is betting on a mineral that has a present and a future, that is basic in the new energy paradigms and that offers new opportunities every day.
Erwin Kaufmann notes that the purpose of this relationship policy "is to share value and for our operation to bring benefits for everyone, working hand in hand with the authorities and with the people who live near the mine." Argüelles adds that, in this regard, care for the environment is a priority, so there are short-, medium- and long-term
MINA JUSTA SUBTERRÁNEA
400
US$
MILLION Of investment, which, if completed, will become the second largest large-scale underground project in Peru.
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30%
After overcoming the pandemic and its collateral effects, the mine began operations.
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INCREASE IN CURRENT RESERVES
+140 THOUS.
Destination: International traders and smelters in Europe, Korea and China. TONS OF FINE COPPER
Cable and other final product manufacturers in the domestic market.
500 THOUS. TONS OF ADDITIONAL FINE COPPER
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forma arauco academy:
THE ARAUCO FORMA ACADEMY WAS BORN THREE YEARS AGO, AS A WAY TO RESPOND TO THE NEEDS AND NEW DEMANDS OF THE FORESTRY INDUSTRY, FOLLOWING THE RAPID PROGRESS OF TECHNOLOGY, AUTOMATION OF PROCESSES AND MECHANIZATION OF THE HARVESTING.
DRIVING THE FORESTRY BUSINESS WITH NEW LOCAL TALENT Arauco took on the challenge of training people for its forestry operations in order to address the new demands of the industry, contributing - through education - to the development of the communities where it operates.
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It is almost 8 a.m. and Yesenia Lefno (31) is ready to start a new day's work as a heavy machinery driver at Arauco’s Valdivia pulp mill. It is an articulated truck, 4.2 meters high and 11 meters long, where up to 45 tons of logs (eucalyptus and pine) are transported from the forestry properties. Yesenia shares this role with 10 other women in a company where the vast majority of workers are men. All of them were students at Forma Arauco Academy, which is
carried out in partnership with the OTEC SOFOFA Foundation, with the aim of training and educating workers for its forestry operations.
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_ in the photo: Yesenia Lefno Heavy machinery driver at Arauco's Valdivia mill.
"This job has been a great accomplishment. My family is very proud of what I have achieved. For me it has been a great learning experience and also very beneficial financially. I am very grateful for the willingness of the teachers at the Academy. It has been fun to get to know the industry and to be surprised about what I am capable of doing," she says.
— focused on business The Arauco Forma Academy was born three years ago, as a way to address the needs and new demands of the forestry industry, following the fast progress in technology, process automation and mechanization of harvesting. The challenge was to be able to count on qualified and
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"WE ARE BREAKING THE PARADIGM THAT THE COMPANY HAS NO ROLE IN THE TRAINING OF PEOPLE," SAYS EYZAGUIRRE.
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_ in the photo: Patricio Eyzaguirre Arauco's Training and Organizational Development Manager.
trained workforce, especially in new machinery. According to Arauco's Training and Organizational Development Manager, Patricio Eyzaguirre, it was not possible to wait for educational institutions to provide the type of talent required, and they understood that, as a company that is constantly moving, they could do it in-house. They had the know-how and experience and decided to train local
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talent. This way, Academia Forma was strategically built, with a focus on business, but with a great social impact. "In Europe, the private sector plays an important role in training, which was not very common in Chile, because that responsibility was given exclusively to the universities. At Arauco, we have committed to this because we believe it is a leverage for development and growth. Through Fundación Arauco, we have been supporting the development of boys and girls for more than 30 years. In addition, with our schools and academies, and in alliance with different players, we are breaking the paradigm that the company does not interfere in the formation of people," says Eyzaguirre.
To date, 9,283 people have been trained in the different initiatives that have been incorporated over time. The Academy has five lines of work: forestry harvesting, Heritage, Protection, Environment and Communities (PPMAC, for its acronym in Spanish), maintenance, roads and driving. In each one, the integration of women has been encouraged and has had a positive impact on all the KPIs related to the operations, especially in safety, production performance and product quality, among others. "This academy is unique. We had to invent a different education model, linked to the operation: selecting talent, setting up infrastructure and educational resources, investing in human and technical resources to train people with high standards in
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FORMA ARAUCO ACADEMY In alliance with OTEC SOFOFA Foundation, with the goal of training and educating workers for Arauco's forestry operations.
2010 BORN
60 INSTRUCTORS
9.283 PEOPLE TRAINED FOREST HARVESTING
MAINTENANCE
DRIVING
30%
PPMAC
ROADS
OF STUDENTS ARE PEOPLE WITH NO EXPERIENCE OR RECENT GRADUATES
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30% OF THE STUDENTS ARE INEXPERIENCED OR RECENT GRADUATES, AND FOR THEM, THIS BECOMES AN OPPORTUNITY FOR GROWTH AND DEVELOPMENT.
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terms of safety, quality and productivity," explains the Training Manager. Currently, there are 60 instructors specialized in each line of training and they have designed several simulators with technology that allows to speed up the process.
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_ in the photo: José Bahamondes Maintenance Operator at Cima Arauco.
Each program lasts about six months, with two weeks of theoretical induction, where almost 100% are hands-on classes and closely linked to the operation.
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Thirty percent of the students have no experience or are recent graduates, and for them this is an opportunity for growth and development. Such is the case of José Bahamondes (21), who has been working as a maintenance responsible at Cima Arauco since September 2022. He was part of one of the first generations of this program and this is his first work experience. One of the aspects that he highlights the most is the dedication of the teachers. "It has been very encouraging to work in this company. I have met many people who support and back you up. This experience has helped me to grow and mature personally and professionally. It has opened my mind and helped me in my decision making," says José.
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training focuses:
maintenance
heritage, protection, environment and communities (ppmac)
forestry harvesting Is focused on the training of mechanized harvesting tasks, operation of high-tech equipment, equipment maintenance, installation of lines and supervisory role for the operation in Arauco's forests.
Focuses on training firefighting brigades, environmental care and community relations. This program has had a positive impact on talent retention, reducing from 30% to 10% the turnover due to the insourcing of helitransported brigades.
Seeks to enable maintenance personnel to perform maintenance tasks on harvesting and forestry road equipment. It has had a positive impact on KPIs related to safety and availability of equipment for operational continuity.
driving
roads Is focused on training in the construction and maintenance of Forestal Arauco's internal forestry roads. It has improved results in terms of safety, lower operational costs and the quality of road construction.
It began training log transport drivers, both in Arauco and Valdivia, to develop a 2.0 driver culture and support contractor companies in incorporating drivers to their operations. Currently, it has taken on the responsibility of training all the people who need to drive in different vehicles at the sites, incorporating driving courses for 4x4 trucks, maintenance and forestry roads trucks, among others. Of the 727 people trained, 68% belong to internal workers and 32% to contractors.
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empresas copec FISHING SECTOR EBITDA: US$ 76 million
ENERGY SECTOR EBITDA: US$ 850 million FORESTRY SECTOR EBITDA: US$ 744 million
RESULTS AS OF SEPTEMBER 2023 empresas copec's consolidated ebitda and net income as of september 2023 reached us$ 1.667 billion and us$ 183 million, respectively.
OTHER EBITDA: US$ (4) million
TOTAL NET INCOME: US$ 183 million EBITDA: US$ 1.667 million
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Meanwhile, Mina Justa, through our subsidiary Alxar, continues to report positive news, with an interesting generation of Ebitda, which responds to stable production, controlled and competitive costs and good price scenarios.
_ in the photo: Rodrigo Huidobro Alvarado CFO at Empresas Copec.
A few weeks ago, we released our results for the third quarter of 2023, which show an Ebitda of US$ 609 million and a quarterly loss of US$ 31 million. These are figures that are well below those we got used to seeing during the years 2021 and 2022, when all our business lines showed exceptionally positive performances. The year 2023, on the other hand, has been impacted by a sharp drop -perhaps the sharpest in decades- in pulp prices, affected at the beginning of the year by weaker demand in China and Europe, and by the significant entrance of new capacity into the market. Likewise, results have been returning to normal in timber, a segment which, in recent years, driven by certain trends since the pandemic, had shown margins that were almost three times higher than usual. In energy, we have been seeing a slight decrease in volumes, probably affected by a lower economic dynamism in our main markets. Together with this, the revaluation of inventories and the industrial segment have generated less favorable effects than in 2022. Abastible, however, shows an increase in its Ebitda this quarter, mainly due to a recovery in Chile and Colombia.
All in all, in the last reported quarter we began to see a recovery compared to the levels reached in the previous quarter. In fact, Ebitda grew 38%. This is mainly due to the forestry business, with higher pulp volumes and costs that are moving downwards as MAPA's production grows, and which should continue on this trajectory. In recent months, there has also been a significant rebound in pulp prices. Even in these less favorable scenarios, we have a robust financial situation, with an investment grade rating recently ratified by the rating agencies. This allows us to start thinking about the next steps of our strategic plan. MAPA, the large investment of the last few years, is beginning to bear fruit, showing more than 500 thousand tons produced as of September, with optimum quality. In the first months of 2024 it should be fully operational, adding more than 30% of capacity for the Arauco subsidiary. In a few years, the plant in Sucuriú, Brazil, could be added, which would contribute another 50%. These are projects with attractive long-term returns, of impressive magnitude, engineering challenges on a global scale and, at the same time, together with the associated forest plantations, with enormous contributions to the decarbonization of the planet.
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Likewise, Copec and Abastible will continue to move forward in the energy transition and the transformation of their business model. In a changing global energy scenario, our subsidiaries have the capabilities, the brand strength and the trust of their customers, necessary to not only carry out but also lead this evolution. Thus, we will see an increasing contribution to this segment's EBITDA from areas other than fuels, although complementary to them, such as new energies, convenience, lubricants and logistics. For its part, Alxar has just announced an option to expand Mina Justa. It is a project of about USD$400 million, which preliminarily increases reserves by 30%, useful life by five years and production by 500 thousand tons of a resource that is critical for the world's energy transition. In this way, we will continue along the path we have been following for some time now, that of providing resources and energy with a long-term vision, thinking in decades, with an eye on the future of the planet and its inhabitants.
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empresas copec receives la voz del mercado award
empresas copec leads ranking of the most valuable brands in chile
ec and subsidiaries among the best companies to work for according to university students
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ec and executives receive awards from enseña chile and belén educa read
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fundación copec-uc awards ch$434 million in r&d to innovate contest
las salinas launches its vision for viña del mar project and starts bidding process
golden omega inaugurates desalination plant in arica
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orizon seafood acquires 70% of fiordosur
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empresas copec receives la voz del mercado award for the fifth time, the company was acknowledged as one of the three chilean firms with the best corporate governance practices.
The study of publicly traded companies considers the perception of more than 370 directors, managers, investors, brokers and analysts, among other professionals and experts from different industries who were surveyed by EY. Its results and final selection are verified by the Santiago Stock Exchange and the Chilean Institute of Directors. "At Empresas Copec we are aware of our leadership in the different businesses and of our role in the country, therefore, we take on the responsibility of focusing all our energies on continuing to raise the standards in corporate governance matters," said Empresas Copec's chief executive officer, Eduardo Navarro.
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Other companies that received a positive evaluation were Banco Bci and Banco de Chile. Meanwhile, LATAM Airlines was distinguished as Outstanding Company 2023.
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empresas copec leads ranking of the most valuable brands in chile the company was highlighted in brand finance's "chile 10 2023" report, which recognizes firms based on factors such as their financial health and equity.
According to the study, Empresas Copec is at the top of the Chilean ranking for its brand value. In addition, the indicator highlights the Company's commitment to making new investments, including the upgrade and expansion of the ARAUCO mill and the construction of a new panel production line in Mexico. Brand Finance is an independent consultancy based in London, focused on global research, valuation and strategy. Each year, it analyzes more than 5,000 major brands around the world and publishes more than 100 reports. Certified ISO 10668 and ISO 20671, it is officially endorsed by the Marketing Accountability Standards Board (MASB) in the United States.
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ec and subsidiaries among the best companies to work for according to university students the company ranked second in the corporate holding category and climbed 44 positions in the overall measurement, reaching 37th place.
The fourth edition of the “Merco Talento Universitario en Chile” report -which ranks the 200 most attractive companies to work for- highlighted the Company and its subsidiaries among the most valued organizations by university students when it comes to joining the labor market. Meanwhile, subsidiaries Copec and Abastible ranked first and fifth in the Energy and Distribution category, respectively. The sample was conducted nationwide, between June and August, and included more than 5,000 students in the last two years of engineering and technology, health, economics and finance, social sciences and humanities, architecture
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and construction, education and advertising, as well as and marketing, among others. Among the criteria for choosing a company are compensation and benefits (20%), training and professional development (18%), quality of life and work flexibility (18%) and a good working environment (16%).
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ec and executives receive awards from enseña chile and belén educa the institutions acknowledged the constant commitment of the company, roberto angelini and eduardo navarro to promote quality education. At Enseña Chile's 15th anniversary ceremony, Empresas Copec received an award for its role as a strategic partner of the foundation for more than 10 years. The award was received by Eduardo Navarro, EC's Chief Executive Officer, who was joined by members of the team. In addition, the Belén Educa Foundation presented the holding company with the "Alliances that Transform" award for its long-standing commitment to the quality of education in Chile. The institution also honored Roberto Angelini, the Company's Chairman, and Eduardo Navarro, CEO, with the "People committed to education" award.
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"It is very rewarding to be able to inspire these students to continue growing as people and professionals. It is key to bring the business world closer to education and students, and to collaborate so that these students have the freedom to dream," commented Eduardo Navarro.
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fundación copec-uc awards ch$434 million in r&d to innovate contest the initiative seeks to support innovative science and technology-based proposals in the fields of natural resources and energy. The three teams awarded this semester will receive advice on commercial management and business model, as well as on intellectual property and regulatory issues, among other guidance necessary to materialize their ideas and generate impact. Since it was created, Fundación Copec-UC has supported 119 R&D&I projects with contributions of more than Ch$11,500 million.
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las salinas launches its vision for viña del mar project and starts bidding process the initiative aims to clean up and provide the city with a sustainable urban project, in collaboration with the community and authorities. The project, submitted to the authorities and the community of Viña del Mar, includes building medium-rise social integration housing, which will occupy 60% of the space. It also considers the construction of green areas that will connect the coastal edge with the upper sector of Viña del Mar and other works, such as the recovery of the 19 Norte street descent and a park in front of Alessandri Avenue. This would be developed after a land remediation process, for which the bidding process has already begun following its recent approval by the authorities. Of a total of 14 interested parties, seven international consortiums were chosen as candidates to develop soil bioremediation in the area.
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Jan de Nul (Belgium); Lamor (Finland) and Excon (Chile); Litoclean (Spain) and DPC (Chile); RSK (United Kingdom) and Flesan (Chile); Séché (France) and EBCO (Chile); Veolia (France) and Echeverría Izquierdo (Chile); and Züblin (Austria) and Strabag (Germany), were the groups that passed this first selection, which will be awarded in March 2024.
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golden omega inaugurates desalination plant in arica with these new facilities, the company will be supplied with treated seawater, reducing the consumption of water resources.
This is the first seawater desalination plant in Arica, which will extract water from the ocean and allow the affiliate company to have access to this renewable resource and, at the same time, reduce its usage demand from the public drinking water network. The facility will have a capacity to generate around 1,000 m3/h of desalinated water, equivalent to the daily consumption of approximately 6,500 people. Golden Omega's general manager, Jorge Brahm, explained that "this operation gives us greater autonomy from Arica's drinking water network, providing more available capacity for use by the community. In this way, we ensure
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the continuity of supply and free up such an important resource in the midst of a water shortage period, which is in line with Golden Omega's sustainability strategy."
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orizon seafood acquires 70% of fiordosur with this acquisition, valued at nearly us$20 million, the subsidiary will strengthen its activities in strategic markets such as the united states and china.
Fiordosur is focused on processing and exporting premium products, with a strong commitment to sustainability, an important regional positioning and a close relationship with the artisanal world in Aysén and Magallanes. As a result of this transaction, Orizon will complement its activities through the export of high-value marine proteins such as cod, spider crab and king crab, portioned salmon and crab. Cristián Larraín, Orizon’s general manager, valued this new step in the company’s growth: “We wanted to complement our capabilities with those of Fiordosur, which has great experience in the industry and an excellent human and
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professional team. In addition, it handles high quality products and is a recognized brand in the target markets.”
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journalistic magazine published by: empresas copec s.a. el golf 150, piso 17, las condes teléfono: 2461 7000 legal representative: eduardo navarro director: rodrigo huidobro editing and writing: m. francisca riveros natalia labbé journalists: journalists: constanza serrano daniela araneda marisol silva francisca zúñiga comsulting team proofreading norinna carapelle photography: photo bank of empresas copec and subsidiaries image banks design and graphic production: porta4, design studio translation: cristina molina if you have any suggestions and opinions, please send us an email at comunicaciones@empresascopec.cl follow us:
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The opinions expressed by the different authors and contributors in this magazine are the exclusive responsibility of those who express them and do not necessarily represent the opinion of Empresas Copec S.A.