How did Tecnomina manage to increase revenues in 2020 despite the impact of the pandemic?

The pandemic had a significant impact on our service supply, especially as the qualified workforce, which was already limited in Peru, faced quarantine and mobility restrictions. This reduced our capability to meet our clients’ demands. However, we managed to mitigate the negative impacts through agreements with our collaborators to remain in the field for prolonged periods of time in order to reduce workforce turnover and trips as much as possible. In terms of product supply, Tecnomina had the necessary stock to meet our clients’ needs. Although we did have certain problems with imports due to vessel restrictions caused by the pandemic, this did not reduce our company’s revenues. In fact, we managed to increase our earnings by almost 3% compared to 2019. Our rise in earnings came primarily from the sale of Sempertrans conveyor belts for Las Bambas, the sale of cleaning systems from Rema Tip Top to companies such as Las Bambas, Cerro Verde, and Antapaccay, and the sustained sale of our traditional products. Additionally, we earned revenue from the provision of services to important clients such as Southern Peru Cuajone, who demanded a seven-month service for the maintenance of conveyor belts.

Can you explain the benefits of the products Tecnomina works with?

Rema Tip Top has a range of first-class products for everything related to the reparation and maintenance of conveyor belts. Since 1970, it also has another unit for anti-wear, anti-corrosive, and anti-abrasive coatings. For many years, Rema Tip Top had focused on products such as rubber, glue, tools, etc. However, in 2000, with the Antamina and Yanacocha projects, we grew significantly in the service area. Another line of business of Rema Tip Top is in the automotive sector, specifically in tire repair. Additionally, since their acquisition of the Dunlop unit in South Africa, Rema Tip Top also sells conveyor belts, and we are collaborating with them in this area of business. Tecnomina is also an agent for other companies such as Sempertrans, a European brand that manufactures first-class girdles. We are also in contact with Chinese companies that supply conveyor belt-related products for a middle market. In summary, we have a wide range of suppliers to adapt to the specific demands of each market.

Can you explain Tecnomina’s focus on innovative solutions such as preventive maintenance?

Tecnomina is developing a plan to acquire new equipment to complement the stock of equipment we already have to better meet the demand of our clients. We aim to provide them with a diagnosis and offer them a customized solution. We are getting increasingly involved in preventive maintenance, using high-tech equipment to evaluate the condition of conveyor belts, including dynamic radiographic equipment, ultrasound sensor equipment, and scanning equipment. This technology can be used while the conveyor is in movement, which is a great advantage.

What is your outlook for Peru’s mining industry in 2021?

The mining industry is showing itself as the key pillar of Peru’s economy, despite social conflicts. Mining companies have been providing support to remote communities during the pandemic through oxygen donation and other social initiatives.

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