Chile has established itself as an attractive destination for foreign companies seeking to expand in Latin America in the most diverse sectors. Here are a series of companies that are betting on Chile, to build from the first tire recycling plant in the world to the most modern data center. The reasons? Find out from their executives.
Chile has positioned itself as the most competitive country in the region according to the World Economic Forum; the most attractive for investment according to the Milken Institute and even the safest to invest in Latin America, according to the Economist Intelligence Unit. It is also one of the most reliable countries in the region to do business according to Forbes magazine. Therefore, it is not strange to see that there are several companies that today choose Chile to innovate, expand and market new products and services. According to them, among the main reasons are clear business rules, a wide network of trade agreements, availability of talent and great conditions to innovate.
One of the most pressing current challenges is undoubtedly global warming and the need to generate renewable energies that will allow us to eliminate global dependence on fossil fuels. Chile has been at the forefront in this area, due to its geographical conditions, but also because of its capacity to attract talent. Last year in the region of Antofagasta, Chile inaugurated Cerro Dominadorthe largest solar thermal plant in Latin America, with the capacity to supply approximately 380,000 homes and reduce the emission of around 640,000 tons of CO2 per year. "Chile has become a leader in the energy transition and in the installation of renewable energies," says Fernando González, CEO of Cerro Dominador. "We are located in the desert with the best radiation in the world and we believe it is a good bet to continue working on renewable energies in the country," he adds.
Also in terms of sustainability, an unprecedented initiative is being developed in the same region of Antofagasta, in Bahía Verde, where Michelin is building the French company's first mining tire recycling plant in the world. "Chile is a country with a healthy business environment and sound economic policies. It is a country that believes in sustainability, just like us, so as a company we have decided to build our first tire recycling plant in the world here," says Carla Allende, Michelin's marketing manager for Chile, Peru and Bolivia. Once fully operational, the center will have the capacity to recycle 30,000 tons per year of end-of-life tires for mining vehicles.
Chile has also positioned itself as a pole of attraction for technology companies. In 2020, the U.S.-based Microsoft announced its "TransformaChile #ReactivaciónDigital" plan, a project that aims to build a datacenter region in the country and generate 51 thousand jobs in four years. "We reinforce our long-term commitment to the country, by announcing our most significant investment in the national territory, which seeks to contribute to the development and boost the economic recovery of the country," says Sergio Rademacher, general manager of Microsoft Chile. Another technology company that has bet heavily on Chile is Oracle, which after opening its first data center in the country in 2020, last year announced the construction of a second one, and its CEO said that Chile is called to become a pole of technological development.
In the same industry, the also U.S.-based Evernote - which allows capturing, storing and synchronizing files - announced in 2019 the installation in Chile of its first software development center outside the United States. "In 2019 we started a development center in Chile for two reasons: availability of talent and simple, clear and consistent business rules. To date we employ more than 60 people, and we expect to continue growing in 2022," states Francisco Mardones, Evernote's executive director for Chile. "Technology companies are in a permanent search for talent, and Evernote is no exception," he adds.
Healthy food has also proved attractive to foreign investors. One example is The Live Green Co, a company that, based on an algorithm called Charaka, makes it possible to replace chemical additives in products that we usually consume with vegetable-based substitutes, as well as to produce 100% degradable packaging. Its creator, Indian entrepreneur Priyanka Srinivas, decided to found her company in Chile and not in her native country. "I am often asked why Chile? I think Chile has played an instrumental role in the success of The Live Green Co," says Srinivas, explaining that this is due to a number of reasons: "The Chilean market behaves very similarly to developed countries like the United States, so it's an amazing market to test, learn and market your idea before going global. The second thing is the trade agreements it has with more than 60 countries and organizations like ProChile and InvestChile, which really help you open those doors. Finally, the support of government institutions like Corfo and Startup Chile," he says. Finally, he says that the most important thing is the people in Chile, who are extremely open to new ideas, technologies and way of life".
In addition, the multinational Nestlé now has 80 brands in 12 categories, and continues to grow. "We continue to seek new opportunities to operate in the country. An example of this is the recent acquisition of La Fete fine chocolate, a 100% Chilean brand, because we are confident that we will continue to expand our presence and commitment to Chileans," says Andrés Eyzaguirre, corporate affairs manager of Nestlé in Chile.
Also in the mass consumption sector, the multinational Unilever has been operating in Chile for almost a century through its different brands. "Chile is an innovative country, that is why we chose it and bet on it as a testing center for many of our products at a global level. It is a growing country with an increasingly relevant environmental awareness", says Nuria Hernandez, country manager of Unilever Chile.
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