The economic environment in 2016 continued to be favorable for the Adhesives Business, which closed the year with positive results and an annual sales growth of 14%.

The business’s positive performance was achieved despite significant increases in the cost of some of its main inputs, reflecting the depreciation of the peso against the dollar as well as extraordinary price hikes in the cement industry.

During the year, the business made progress with adapting to the specific installation needs of new, increasingly sophisticated, differently sized ceramic products. It also implemented commercial initiatives to continue enhancing its brand value, through digital and the mass media, and at the point of sale. For example, the Crest campaign “Don’t get mixed up, each product has a specific function” (No te confundas, cada uno a su función) was aimed at reinforcing the correct use of adhesives specifically adapted for each particular application.

In order to promote its different product lines and continue growing its presence both in Mexico and beyond its borders, in 2016 the Adhesives Business took part in fairs and exhibitions, such as Coverings in the United States and Expo CIHAC in Mexico City. It also organized installer events, such as Installer Day, which attracted more than 2,000 participants.

The specialized SLTK mortar line, launched in 2015, advanced significantly in 2016, with sales volume doubling year-over-year. New products were developed to complement the line and assure a range of offerings to satisfy the diverse market needs.

In response to the enhanced market activity and favorable results of 2015, during the year the segment determined to expand its installed capacity. Thus, it began the construction of three manufacturing facilities in the states of Hidalgo, Chihuahua and Morelia. These production centers will begin operations during the first half of 2017, underpinning the presence of the Adhesives Business in the three regions.