Sustainable
Solutions

At Mexichem, we aim to deliver services that address our customers’ needs so that, together, we can contribute to making life better while solving today’s unique social and environmental challenges. We offer a wide range of value-added materials, finished products and solutions that contribute to the success of our clients, improve people’s lives and build a more sustainable world.

3

We help deliver fresh water where people need it with state-of-the-art water management solutions for homes and buildings, as well as rainwater, wastewater, sanitation and drainage systems for cities.

We play a critical role in increasing the world’s connectivity through advanced data transfer systems that deliver more information at higher speeds.

We help farmers grow more food with less water with intelligent irrigation solutions and farm-management techniques.

We advance access to healthcare through life-supporting PVC-based products for essential use in hospitals, clinics and healthcare centers, and propellant gases for inhaler products used by millions of patients around the world.

We create new possibilities to make living and working easier and better through our flexible, versatile, specialty vinyl derivatives that touch the lives of people everywhere through the thousands of consumer, household and industrial product developments our materials enable.

Operating from 19 Research and Development facilities around the world, we invest significantly in innovation processes with our teams that include more than 250 scientists, engineers and agronomists. In 2018, our investment in R&D was $41 million.

Innovating
our Innovation

At Mexichem we recognize the importance of innovation to secure our growth, maintain leadership in our industries and engage in new markets - and in doing so, enhance the quality of life.
Innovation at Mexichem has been achieved through the acquisition of new companies and technologies as well as through our in-house research and development processes, proprietary to our each of our operating companies, with their unique areas of expertise.

3

Innovating our Innovation

The combination of acquired and developed innovation has led us to develop solutions for the construction, services, civil infrastructure, water conduction, basic sanitation, transport, energy and telecommunications industries. Please read about some of our recent innovative solutions in the following pages of this report.

However, as we grow, we see the need to innovate even our own innovation process. We aim to better leverage our scale, share knowledge within our different business groups and operating units, and develop new ideas and applications for existing technology. To achieve this, we are establishing an innovation ecosystem comprised of:

Lighthouse: an innovation lab that will provide dedicated teams for top priority projects;

Corporate venture capital: seeking new technologies and investing in promising opportunities;

Open innovation: engaging and partnering with startups to advance early-stage technologies that hold strategic promise, and

In-house innovation: empowering employees to suggest ideas and developing a robust platform to coach these ideas all the way to commercialization.

Additionally, we have taken steps to create a global innovation platform across all Mexichem R&D units to encourage a culture of innovation. We are looking to establish a framework that all our businesses can apply to accelerate the pace of innovation in a clear and structured process. To get things moving, we created a Global Innovation Forum to establish the way forward as a global team.

Future-fitting
to Support Urbanization

Today, 55% of the world’s population lives in urban areas. By 2050, it is forecast that 68% of the global population will be city-dwellers. The migration of millions to cities carries far-reaching social and environmental implications, not least of which is the need for the development of sustainable infrastructure and construction that aligns with the vision of long-term global prosperity and planetary stewardship.

3

Future-fitting to Support Urbanization

At Mexichem, we offer a wide range of sustainable solutions for building and construction, as well as city infrastructure. As a leading manufacturer of polyvinyl chloride (PVC), we supply the third most popular plastic in the world and a very widely used material in the building and infrastructure market. As one of the largest global suppliers of conduits for fiber-optic and other cables, we play a strong role in equipping city infrastructure for data, water, power and other smart network systems that form the backbone of city life. As an innovative manufacturer of sewerage solutions, we help cities manage the increasingly concerning problems of drainage and wastewater removal that are exacerbated as population

density grows. At Mexichem, we are playing a part in the urban revolution through hundreds of ways that city-dwellers don’t realize while they enjoy the benefits of modern living, and those in developing countries gain first-time access to new services that improve their lives. By providing a range of sustainable solutions that support building and infrastructure, we play an important role in advancing the United Nations Sustainable Development Goal #11: Make cities and human settlements inclusive, safe, resilient and sustainable as well as Sustainable Development Goal #6: Ensure availability and sustainable management of water and sanitation for all.

3

Future-fitting to Support Urbanization

Cycleways of the future

In 2018, we piloted the first-ever cycle path made of recycled plastic, offering the promise of a revolution in cycleway construction to enhance urban efficiency, sustainability and to ease the complexities of managing road transportation infrastructure.

The cycle path was first piloted in Zwolle in the Netherlands in September 2018 and more than 124,000 cycles used the road during the pilot phase. PlasticRoad showed stability at temperatures from 20° to minus 5° Celsius with no wear or tear. A second pilot in the town of Giethoorn, also in the Netherlands, confirmed our findings. Our next pilot in 2019 will be in a parking lot, to test the PlasticRoad under more challenging conditions.

As we continue to develop PlasticRoad and test its viability for more forms of urban transportation, we see potential uses in smart city applications, incorporating sensors for assessing traffic congestion, road use and weather conditions.

The road could also be used in parking spaces and even to providing charging points for electric vehicles. We are excited about the potential of our PlasticRoad to future fit cities for sustainable living and growth.

3

Future-fitting to Support Urbanization

PlasticRoad is a prefabricated, modular and hollow bicycle path built of recycled plastic. Its benefits include:
• Faster and more efficient construction and maintenance compared to traditional road structures due to prefabrication, light weight and modular design.
• The ability to store, move and infiltrate water to prevent flooding during heavy rainfall.
• A significantly smaller carbon footprint than traditional road structures thanks to the circularity of

plastics, the longer lifespan of the road and an 85% reduction in logistics involved in its installation.
PlasticRoad was developed by a trio of leaders in their respective fields:
• KWS, a VolkerWessels company, a market leader in road construction in the Netherlands.
• Total, an integrated global energy producer and provider, and Mexichem’s Wavin, the European market leader in the field of plastic pipe systems and solutions for sustainable rainwater management.

3

Future-fitting to Support Urbanization

PlasticRoad is fully recyclable. New PlasticRoad can be produced from old PlasticRoad, although the road’s lifetime is expected to be three times that of an asphalt road – so it might be some time before there is old PlasticRoad available to recycle!

Around 70% of the plastic used to produce PlasticRoad currently comes from recycled post-consumer plastics, and we are working towards

sourcing 100% fully recycled plastic to produce the road in the future.

PLASTICROAD AWARDS

In 2018, PlasticRoad won the Cobouw Award in the ‘best product’ category. Cobouw is a renowned Dutch publication for the construction and infrastructure sector.

In 2019, PlasticRoad won the InfraTech Innovation Prize 2019 by the Dutch Ministry of Infrastructure and Public Works.

3

Future-fitting to Support Urbanization

So far, PlasticRoad has drawn interest from all over the world and captured the attention of many municipalities. City-leaders want to contribute to making the world greener and are looking for solutions for the challenges of the future. The PlasticRoad bike path is the first step in the ongoing journey towards building sustainable roads and we are proud to be part of it.”

MAARTEN ROEF
President, Building and Infrastructure

3

Future-fitting to Support Urbanization

A road gully to solve an urban challenge

Urbanization brings new challenges for city planners. Ageing sewerage infrastructure, modern urban planning and other environmental considerations have led to some acute issues in water drainage in cities. Some gullies cannot drain the rainwater away fast enough and will therefore bubble up and overflow into the street – creating stagnant water. Blocked gullies create unsafe road conditions, yet unblocking or repairing them is costly and inconvenient. This poses a serious problem for municipalities and residents.

Following consultation with municipalities, sewer maintenance companies and contractors to understand their challenges and needs, Mexichem designed a road gully to overcome the dual challenges of improving safety while reducing repair costs. The gully was launched in 2018.

By providing this new solution, we address the connected challenges posed by flood waters, climate change and urban development, helping improve the quality of life for city-dwellers.

The road gully:
• Provides access to manholes and inspection chambers.
• Is made from post-consumer materials (recycled polypropylene) from the automotive industry for gravity sewage systems and a special piping for pressure systems.
• Is easy to install - twice as fast as regular gullies and with just one operator, without the need for lifting equipment.
• Is easy to maintain through its lifecycle.
• Offers strong hydraulic performance.
• Is compliant with different local standards for European countries.

3

Future-fitting to Support Urbanization

Construction for better living and working

Mexichem solutions are widely used in some of the most prestigious and ambitious construction projects in the world, providing new living, working or recreational spaces to improve the lives of local citizens and create attractive urban landscapes.

In El Salvador, we supported work on the most modern building in the country, the Insigne building by Calidad Inmobiliaria in San Salvador. Insigne has 21 floors of office space and was built using our Amanco solutions for drinking water, drainage, and storm water, as well as utilizing our pumps and valves throughout the building. Use of Building Information Modeling (BIM) technology enabled the most efficient design and optimal use of materials which achieved 50% reduction in construction waste. Trenchless installation of pipes helped avoid disruption to the local area during construction.

In Brazil, we continue to support construction of what at 275 meters will be Brazil’s tallest skyscraper: the

Yachthouse in Balneário Camboriú, scheduled for completion in 2020. The Yachthouse includes two 81-floor residential towers. Our Building & Infrastructure group provided the hot and cold-water, sewerage, rainwater drainage and fire protection systems through the Amanco brand.

3

Future-fitting to Support Urbanization

YACHTHOUSE

We provided the internal infrastructure including hot and cold water systems.

INSIGNE

Use of 3D Building Information Modeling (BIM) technology enabled the most efficient design and optimal use of materials.

3

Future-fitting to Support Urbanization

Protecting critical oil supplies

Among the special uses of our uniquely designed conduits is our collaboration in Canada with Hifi Engineering, a leading provider of sensing and monitoring technology for oil and gas pipelines, including other applications. A key priority for pipeline operators is to ensure the pipes do not suffer damage or leakage of any kind. Hifi Engineering’s sensing technology is deployed via fiber optic cable carried in Mexichem’s Dura-Line conduits adjacent to the pipelines. This system offers unprecedented protection for oil and gas pipelines and provides real-time information about the integrity of the installed pipes, giving operators the ability to prevent potentially catastrophic environmental damage. We have worked with HiFi engineering for more than a year to develop this solution, now deployed in Canada and other countries.

3

Future-fitting to Support Urbanization

We are excited about helping scale this technology to further support city infrastructures and environmental protection. For this reason, we became members of the Fiber Optic Sensing Association, working with other industry players to develop innovative technical solutions and support changes in public policy to enable their more extensive deployment.”

TIM GRIMSLEY
Vice President, Global Customer Engagement, Mexichem Datacom

3

Future-fitting to Support Urbanization

Going to the opera?
Soon to be better in Prague

Madame Butterfly would have been delighted! Our renovations of the State Opera House in Prague are recreating the glory of this iconic theater. The opera house, which opened in 1888, is in dire need of renovation. The biggest issues with the historic building are the distribution systems – particularly the wiring, water and waste. Mexichem was thrilled to accept the challenge of helping restore this UNESCO-protected building, while deploying the most advanced solutions for water, waste and drainage that we can offer. Using advanced Building Information Modeling technology, BIM Revit, the entire internal building structure was scanned and demolished digitally. Then, Mexichem developed plans to reconstruct the State Opera House to provide highly efficient hot and cold water, and soil and waste piping installations. The solution uses Wavin-brand silent systems which limit noise from drainage, a significant feature to such a building. While extensive remodeling is in progress, the antique

artwork and historic façade of the building remain untouched and intact. Renovation work is scheduled to be completed in 2019, enabling the thousands of visitors to the State Opera House each year to enjoy a cultural experience in a historic, yet efficient and climate-friendly building.

3

Future-fitting to Support Urbanization

Connectivity is a way of life

Connectivity is transforming the world, and it is doing so at an increasingly rapid pace. Within the next few years, 5G will transform internet capabilities and the Internet of Things (IOT) will connect billions of intelligent devices. In the near future, unlimited streaming, autonomous cars, remote open-heart surgery, infinite e-commerce, global online education and unprecedented deployment of technology affecting every facet of our lives will be our new reality. The hardware and networks required to support this change are now being developed. Our Mexichem Datacom business supports the connectivity infrastructure solutions that underpin the scaling of 5G and IOT.

One of the biggest limitations to the growth of fiber optic data transport solutions for 5G is the pace of upgrade of existing cable systems. New fiber optic installations are costly and time consuming in a period where all providers are racing to expand their services using new technology. Our solution, FuturePath Hybrid™, launched in 2018, goes a long way to solving these issues. Offering a combination of three standard ducts and three micro ducts in one

single conduit, customers can install one line and obtain six new pathways for fiber optic cables. With half the time required to install and double the amount of data transport space in one conduit, we offer service providers a route to faster, more efficient, less costly and fully reliable 5G-ready service.

3

Future-fitting to Support Urbanization

In 2018 we manufactured more than

400 million

meters of conduit – enough to circle planet Earth 10 times.

Mexichem’s Datacom group is the only global manufacturer of communications conduit, the largest conduit company in North America, and has worked hand-in-hand with some of the largest communications service providers for over two decades.

3

Future-fitting to Support Urbanization

We know for a fact that economies that make best use of technology are more competitive and offer a higher standard of living for their citizens. At Mexichem, the sheer scale and global presence of our datacom offerings positions us at the heart of economic growth. All new technological developments need connectivity. Our products help service providers build their basic connectivity layer. We are playing a significant role in the spread of technology to all corners of the world, and I am proud of that.”

PETER HAJDU
President, Datacom

Everywhere
in Healthcare

If you are one of the 100 million people in all corners of the world who uses an inhaler to control your asthma, chances are that a Mexichem propellant is what delivers you with a perfect dose of medication straight to the lungs. If you have ever had a blood infusion, or a saline drip, there’s a high probability that the medical bag was made using our polyvinyl chloride (PVC). One in every five fluorine atoms used around the world come from our company.

3

Everywhere in Healthcare

We remain committed to supporting global healthcare services with day-to-day products used in routine and specialist healthcare that are essential for many medical interventions and treatments. With an ever-increasing population that the United Nations estimates will reach 9 billion in 2050 (of whom more than 2 billion will be over the age of 60), the demand for healthcare services will continue to grow. By providing a range of sustainable solutions that support healthcare, we play an important role in advancing the United Nations Sustainable Development Goal #3: Ensure healthy lives and promote well-being for all at all ages.

In the healthcare industry, there are hundreds of uses for PVC, and this versatile, affordable, recyclable product has

become a material of choice in hospitals, clinics and other treatment facilities. This is true both for medical equipment as well for the internal fittings in healthcare facilities, where PVC offers major advantages in maintaining hygienic and sterile conditions. The special qualities of PVC make it an optimal choice for all forms of cables, pipes, floorings, window fittings and other fixtures in health centers. At Mexichem, our significant support for the healthcare industry contributes to the efficiency of health services around the world. In other words, it’s good for our health!

3

Everywhere in Healthcare

Post-use medical grade PVC is fully recyclable!

PVC is widely used in the construction of medical facilities such as hospitals and clinics. In flooring, ceiling and wall coverings, PVC reduces cleaning and prevents the spread of infection with its smooth hygienic surface.

The two main applications for medically approved PVC compounds are flexible containers and flexible medical tubing.

Medical grade PVC is used in approximately 40% of all plastic-based medical devices around the world.

Mexichem is a member of the PVCMed Alliance representing all parts of the PVC medical industry chain advancing PVC-based products and applications to provide top quality healthcare while being environmentally sustainable.
https://pvcmed.org

Fluor-based medical grade propellant produced by Mexichem is used in around 75% of metered dose inhalers manufactured by pharmaceutical companies for 100 million users around the world.

3

Everywhere in Healthcare

Vinyl and vinyl compounds are among the most versatile building blocks of so many of the consumer, household and industrial products we use every day around the world, in healthcare and construction, automotive, electronics, textiles and much more. At Mexichem, one of the largest providers of vinyl resins and compounds in the world, we thrive on playing a significant role contributing to the efficiency of several industry sectors.”

CARLOS MANRIQUE ROCHA
President, Vinyl Business Group

3

Everywhere in Healthcare

Low-carbon treatment for asthma

At Mexichem, we seek to blend science with social and environmental benefit. An estimated 235 million people suffer from asthma globally, according to the World Health Organization, and many use Metered Dose Inhalers (MDIs) powered by propellant gas. Mexichem currently supplies around 75% of the leading propellant gas (R134a) for global medical inhaler needs.

We are now working with the healthcare industry to promote the adoption of a next-generation propellant that meets all medical performance requirements while offering a much lower carbon footprint than current propellants.

After significant development efforts, driven by a desire to reduce the global warming impact of MDIs, Mexichem Fluor was able to confirm that a hydrofluorocarbon compound, 1,1-difluoroethane, known as HFA-152a, does the job. The global warming potential of HFA-152a is 90%

lower than current propellants, meaning MDIs powered by Mexichem HFA-152a can lead to a significant reduction in greenhouse gas emissions.

3

Everywhere in Healthcare

We are progressing development of HFA 152a with several pharmaceutical companies and expect to introduce Zephex®152a once all necessary performance, regulatory, quality and safety testing is completed. In this way, we can help people obtain the necessary healthcare treatment while reducing the carbon footprint of the healthcare sector overall. We are proud to be part of a greener propellant future!”

SAMEER BHARADWAJ
President, Fluor and Compounds Business Group

3

Everywhere in Healthcare

This one is for animal lovers

Mexichem cares about health beyond humans. We leverage, as well, our ingenuity to create solutions that support animal wellbeing and sustainable animal agriculture. A specific solution we offer to customers around the world is a bio-based compound that protects animals from harmful parasites. Our product, SuperKleen, sold as a PVC dry-blend carrier, is infused with controlled levels of pest or insect repellents according to customer requirements. It is used as an ear tag for livestock to protect them from infestation by parasites or inserted into hives to protect honeybee colonies. SuperKleen meets the U.S. Environmental Protection Agency (EPA) regulations for products used in animal agriculture, as it is a naturally-derived product that is attractive due to its versatility. In fact, in 2018, we saw several requests from Taiwan and other parts of China with customers looking to use bio-based PVC compound SuperKleen in applications for humans such as face mask cushions and medical tubing. This just goes to show that caring for animals is always a good thing to do.

3

Everywhere in Healthcare

We are a specialty polymer compound solutions provider with a diverse portfolio addressing challenging applications at the forefront of materials technology. Our solutions involve working closely with customers to develop proprietary solutions. As we do this, we pay close attention to safety at our manufacturing sites and the impact our manufacturing processes and our material solutions have on the environment. Our goal and commitment is to be a responsible player in this space.”

GAUTAM NIVARTHY
Vice President and General Manager, Mexichem Compounds

Precision agriculture
for greater yields

Agriculture is the main source of nutrition for the world’s growing population, but it is also a significant source of environmental degradation, with intensive water use, greenhouse gas emissions, waste, deforestation and more. According to Climate Watch (published by the World Resources Institute), 10% of global GHG emissions come from agriculture. The improvement of agricultural practices, with science-based technology and innovative solutions, can double or triple agricultural yields, halve the energy, water and chemicals used in agriculture and advance the livelihoods of smallholder farmers, who supply more than 80% of the world’s agricultural output, helping future generations of farmers prosper.

3

Precision agriculture for greater yields

Mexichem’s Netafim is the global leader in precision agriculture and sustainable farming practices based on drip irrigation. Drip irrigation allows farmers to improve their yields and income. In emerging economies, many farmers are women, whose empowerment through greater income contributes to the growth and resilience of entire communities. Netafim-brand solutions advance sustainable productivity by enabling growers to cost-efficiently produce better and higher yields, while using less water, land, nutrients and energy. Delivering state-of-the-art technology, deep agronomic expertise and training, Mexichem is dedicated to helping farmers achieve their goals by growing more with less. By supporting the development of precision agriculture through drip irrigation systems, we play an important role

in advancing the United Nations Sustainable Development Goal #2: End hunger, achieve food security and improved nutrition and promote sustainable agriculture.

Netafim precision irrigation solutions have demonstrated their efficacy with hundreds of food crops in varying climatic and soil conditions. A development focus in recent years has been commodity crops such as corn, sugarcane and rice, which are global food staples. Low margins on these crops have been a barrier to drip irrigation uptake. However, tirelessly working to advance mass adoption of drip irrigation with its proven benefits, Netafim offers tailored solutions and agronomic support for essential commodity crops with positive results for global food security.

3

Precision agriculture for greater yields

Beyond our unique and advanced products, the precise agriculture solutions we provide include services and solutions such as design, agronomic and technical support, digital farming technology of analysis, monitoring and control systems. These support the company’s core purpose of helping the world grow more with less. That adds up to improved food security while saving a significant amount of water and generating economic development for many communities and a major contribution to mitigating climate change.”

RAN MAIDAN
President, Precision Agriculture

3

Precision agriculture for greater yields

Irrigation by collaboration

In 2016, we concluded a multi-year collaborative flagship project that Netafim had supported as a founding partner over several years. The Ramthal Community Drip Irrigation Project in Karnataka, a state in southwestern India, is the world’s largest, fully automated, community-based drip irrigation project. The project was financed by the Indian government, and included the design, supply and installation of fully automatic irrigation systems, as well as the formation of 23 water user associations and 230 water user groups to secure and regulate efficient use of irrigation water and equitable distribution, based on approved irrigation scheduling and automation.

Netafim India installed drip irrigation systems across 11,700 hectares with fully automated scheduling and a full crop management package, including training for locals on how to use the equipment to cultivate the most profitable crops and optimize land and equipment use. In October 2017, farmers saw the first monsoon crops in several years – thanks to drip irrigation that enables crop cultivation when monsoon rains in the Karnataka region are not sufficient to provide water for a full growing cycle.

3

Precision agriculture for greater yields

Before drip irrigation we used to get good returns only if it rained well. When rain failed, we lost investment on seeds, fertilizer and labor costs. With no other option, we were forced to sell our land to repay our loans. Now, we have gained good farming skills and experience from Netafim.”

Woman farmer from
the Karnataka region

3

Precision agriculture for greater yields

In 2018, the Precision Agriculture business group embarked upon a social impact assessment to monitor the success of the project. Two thirds of the farmers that participated in the project were surveyed. Socio-economic factors such as age, education level, access to banking and mobile phone usage, were measured. Agricultural information such as plot size, irrigation

type, mechanization and types of crop was gathered as well. This data will serve as a baseline for further monitoring of yields, crop income and changes in the socio-economic status of the farming communities in the region and provide valuable information on how improvements can be made in Karnataka and similar initiatives identified elsewhere.

Ramthal Community Irrigation Project

2,200 km

bulk water pipes

77,000 km

drip irrigation lines

22

villages

7,000

farmers

1.74

hectares average farmer plot size

3

Precision agriculture for greater yields

Irrigation by artificial intelligence

Netafim is no stranger to the use of technology in agriculture. Our brand has been steadily enhancing digital offerings and technologies such as cloud computing, big data, the Internet of Things and Artificial Intelligence continue to evolve. Building on these platforms, Netafim leads sustainable agricultural transformation. Digital farming supports leading-edge solutions to global challenges such as food security, water scarcity, land availability and climate change mitigation. Digital farming technologies include irrigation monitoring, water and nutrient control, and real-time adjustments for optimum yields with fewer resources.

In 2018, following three years of development and numerous field trials, Netafim introduced NetBeatTM, the first ever digital solution to enable automated irrigation, fertigation and crop protection. Combining everything into one closed-loop platform, NetBeat enables farmers to monitor, analyze and control irrigation systems remotely. In addition, NetBeat features crop models for 15 different crops, incorporating 50 years of amassed data and

agronomic and hydraulic experience at Netafim. It also uses the input of 150 in-house agronomists and other industry best practice and statistics. NetBeat calibrates itself using these combined data inputs to provide farmers with growing models that are crop, geography, climate and weather-specific. Once in the field, NetBeat continually collects weather, soil and plant conditions, data through sensors and weather stations, comparing live data with the crop growth protocol and making automatic irrigation adjustments.

3

Precision agriculture for greater yields

Since the launch of NetBeat, farmers in 15 countries including India, Brazil, Australia and Japan have installed the system and are starting to evaluate the benefits. As the main growing seasons are through the spring and summer, we expect to have detailed results through 2019.

We were pleased to be an early adopter of NetBeat technology. We are firm believers in the power of technology to transform the way we live and work, so farming should be no exception. We find NetBeat easy to use and far less energy-intensive than our previous irrigation systems!”

Farmer in Japan

3

Precision agriculture for greater yields

NetBeat is the first system in the world that provides a solution for all elements together: monitoring field conditions, collecting and analyzing data, delivering recommendations for irrigation and fertigation, and automated control of the full growing cycle. Results we have seen across the world are truly incredible. This is just the start of our digital farming revolution.”

GUY LEVENTON
Head of Digital Farming, Mexichem Precision Agriculture

3

Precision agriculture for greater yields

Irrigation DripByDrip

In 2018, our Netafim brand continued its engagement with multinational life sciences company Bayer, through its Crop Science Division, on a new crop protection approach called “DripByDrip”. DripByDrip is the targeted application of Bayer’s crop protection products through Netafim’s irrigation systems, enabling direct, controlled administration of crop protection to specific parts of the plant roots. A very important advantage of the new system is its high safety level for the farmer. It is a closed transfer system, so that the farmer does not touch, smell or have any direct contact with the crop protection product. DripByDrip also minimizes quantities of crop protection products leeching into the ground and contaminating subsurface soil and water, as well as reducing chemical residues on fruit and vegetables.

In joint trials of DripByDrip conducted with Bayer, yields increased, and net revenues rose due to improved quality crops, and the number of crop protection product applications was reduced by up to 53%.

Mitigating
climate change

The construction and infrastructure sectors consume a large part of the world’s energy and contribute to global climate change through greenhouse gas emissions. Estimates are that building construction and renovations account for 40% of energy consumption in developed economies. The latest special report from the Intergovernmental Panel on Climate Change (IPCC) - the United Nations body for assessing the science related to climate change - sets the ambitious goal of capping global warming at 1.5°C above pre-industrial levels. Achieving this goal will require major changes in the way industry consumes energy.

At Mexichem, we offer a wide range of smart energy-saving solutions, recycling and construction optimization technology. In this way, Mexichem is contributing to advancing Sustainable Development Goal #9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, as well as Sustainable Development Goal #11: Make cities and human settlements inclusive, safe, resilient and sustainable.

3

Mitigating climate change

Effortless indoor climate control

Indoor climate control is a major focus of the construction industry to help gain energy efficiencies and reduce the environmental footprint of homes and buildings. To support this ambition, in 2018, we introduced Wavin Sentio - a simple to install, smart, indoor climate control system for room-by-room heating and cooling. Smart “zone heating” can reduce energy consumption by up to 21% compared to use of single thermostat control. This is because Wavin Sentio allows the user to control heating in each room, instead of using a single system to cover the entire home.

The Sentio system includes the Central Control Unit (CCU), extension units, room thermostats and sensors, an intuitive App and an LCD touch screen, delivering underfloor comfortable heating and cooling solutions that are very straightforward to install and use. Throughout the innovation process, we involved installers from various European countries who tested Sentio extensively and reached out to customer end users for their feedback. By taking the effort out of temperature management, we enable installers and users to save energy and resources.

Smart zone heating can reduce by up to
21%
of energy consumption compared to use of single thermostat control.

The Smart Indoor Climate Market grew
48%
in 2018 and is expected to reach €6 billion in Europe alone in 2019.

3

Mitigating climate change

We utilize Sentio controls on several projects due to its sleek design and easy control of the system via an app. Its integration with smartphone technology has been positive for our clients. For us, it is also a lot easier to install and the wiring has become a lot simpler than other systems.”

AD Mechanical, UK (Mexichem Customer)

3

Mitigating climate change

Making heating sustainable

Reducing global energy consumption in cities is crucial to achieving global energy reduction and climate change goals. A key solution to reducing the energy dependency and costs of municipalities is district heating, which is a lower-cost option than batteries for storing energy.

In 2018, Mexichem introduced Calefa, a digital heat interface unit for end-users in district heating systems. Installed in homes or offices, Calefa enables savings of 40% or more on standard energy bills. Calefa operates intuitively and, once accustomed to users’ needs, self-adjusts for optimum energy without user intervention. It also enables limited circular flow of hot water in the secondary pipes to keep them warm enough for an almost immediate hot water flow upon demand, reducing water heating requirements and water waste.

3

Mitigating climate change

A recent report by Heat Roadmap Europe suggested that the EU should move from 10% to 50% use of district heating by 2050 to meet its energy efficiency goals.

District heating is based on centralized heat generation with a flexible heat source. Different energy types are combined, switching from one to another for optimum efficiency. Energy types could include low carbon options such as waste combustion, biomass, solar panels and natural gas. Typically, such systems are 100 times cheaper than battery-stored energy.

3

Mitigating climate change

Recycling refrigerants

Mexichem in Japan has pioneered a recycling initiative to help reduce the global warming impact of older generation refrigerants.

In 2018, Mexichem established a new facility for refrigerant recycling and infrastructure. Within the first year of operation, Mexichem recycled 479 metric tons of propellants, avoiding more than 1 million tons of greenhouse gas emissions.

3

Mitigating climate change

We expect the refrigerant recycling demand to become massive in Japan and in other countries. This is recognized by the government of Japan as a business which contributes to the Japanese objective of reducing high global warming substances”.

GREGG SMITH
Vice President and General Manager, Mexichem Fluor

3

Mitigating climate change

Protecting the coastline in Mexico

Coastal erosion was threatening waterfront properties on Mexico’s Yucatán peninsula until an innovative Mexichem solution helped restore the beach and protect homes. At the beachside resort town of Chicxulub, tidal movements and extreme weather conditions are changing the local geography. The nearby Progreso pier, at 6.5 km, is mostly solid construction and therefore blocks the natural passage of sediment, accelerating erosion and threatening beachfront properties along the coastline.

A Mexichem geostructure, consisting of a 20 meter-long tube of woven geotextile made from polypropylene, was placed near the tideline and filled with water and sand. After the water filtered out, a solid breakwater of hard-packed sand was left. Over the weeks that followed, the natural tide action helped fill the area between the geotextile and the shore, creating a new beach to welcome locals and tourists to the area.

3

Mitigating climate change

This solution is not only impressive, it’s permanent. With the geotextile tube in place, only very rare and strong phenomena – like a Category 5 hurricane – will be able to erode the beach, and even then, it will recover.”

RODRIGO PINZÓN
General Director Geosynthetics, Building and Infrastructure

Helping solve
water challenges

In 2015, 29% of people lacked safely-managed drinking water supplies, and 61% were without safely-managed sanitation services. While these statistics, published by the United Nations, may have improved over the past few years, much remains to be done to provide universal access to water and sanitation. In fast-growing cities, water stress comes in different forms, ranging from a lack of infrastructure needed to maintain supply of potable water to all inhabitants, to the need for efficient drainage and the optimization of systems to prevent water leakage and waste.

Mexichem offers a range of water-related solutions to some of the most pressing water challenges around the world including renovation of aging water-delivery infrastructure, urban drainage management, rainwater capture and storage for use in dry areas, and detection technology for water leaks in buildings. In this way, we support and advance progress towards Sustainable Development Goal #6: Ensure availability and sustainable management of water and sanitation for all.

For example, Compact Pipe is a proven system for the efficient repair of leaks. Compact Pipe is easily installed within existing pipelines without the need for costly and disruptive trench excavation in busy city streets. With over 1.5 million meters installed worldwide, Mexichem’s flexible Compact Pipe offers an efficient solution to fix old and leaky pipes, and has a service life of more than 80 years, meaning minimal maintenance and replacement costs.

3

Helping solve water challenges

Keeping Cape Town from running dry

In 2018, the city of Cape Town in South Africa was on the verge of running out of water, following three years of drought and an aging infrastructure that was very complex to maintain. It was estimated that up to a third of city water was wasted through leakage, especially in old steel pipes. To address this issue, our team in Johannesburg responded to the city’s water challenge by installing our Compact Pipe within existing infrastructure so as to cause minimum disruption to the city. We installed six 200-meter sections of Compact Pipe, each of which – weather permitting – was completed in a day with no road closures.

3

Helping solve water challenges

Letting no raindrop go to waste

Many parts of rural Central America lack access to water through traditional systems. In 2013, Mexichem and Care International, in a program funded by the Canadian government, joined forces to develop a technological solution for rainwater catchment in the south of Honduras where annual rainfall occurs principally over a two-month period. A new rainwater catchment system was developed as a simple and inexpensive method for the collection, storage and distribution of water in the home, using geomembrane – a 1 mm thick polyethylene membrane with UV protection. The rain harvest tank is made of this geomembrane and represents the most inexpensive way to store water. Each system can also become a wireless station for collection of local data, with links to rain alerts and other tools such as irrigation software, sewer and drainage maps, virtual flood simulators and more, which can support water or sanitation projects.

Since 2013, storage systems that can hold more than 80 million liters of rainwater have been installed in Central America using Mexichem geomembrane technology, contributing not only to water conservation but also better hygiene and efficient water management to improve the lives of all those living in the region.

3

Helping solve water challenges

Water leaks that
whistle – a world first!

How do you test for leaks after you have finished your water system installation on the building site? To date, you would pressurize your system with water and trace a leak by looking for water dripping from the pipes. But now, there is a cleaner, easier, safer and quicker way! It’s one of Mexichem’s latest innovations, introduced to the market in 2018. It’s the world’s first acoustic leak alert, based on testing with air, rather than water. The fittings whistle when air escapes through an accidently unpressed fitting. Just follow the sound and the fitting is found. Developed as a response to customer needs, in a targeted design process, the acoustic leak alert transforms construction work, enabling leaks to be detected rapidly, thereby conserving water and allowing construction plans to proceed without disruption. Initial reactions from our customers are very positive – some have even given an approving whistle!

3

Helping solve water challenges

When testing with air, the pressure test is no longer a hiccup in the installation phase, as there is no dependency on early water supplies at the building site. An air pressure test can be executed during winter time without the risk of freezing pipes. And leak testing with air has several other advantages; there is no risk of bacterial growth due to water stagnation, it is efficient, and it is ideal for testing prefabricated installations.”

RUURD VAN LEEUWEN
Wavin European Product Manager (Hot & Cold), Mexichem Building & Infrastructure