When Raw Materials Become a Matter of Survival
Interview with Christian Wendel, President of HEXAGON GROUP AG
A ship carrying fertilizer across the ocean may seem far removed from everyday life. Yet its cargo can influence the price of food, the future of a factory, or the livelihood of a farmer in Africa. Christian Wendel, President of Switzerland-based Hexagon Group AG, knows these connections well. He talks about building a global trading business amid successive crises – and why shortages can have consequences far beyond the balance sheet.
European Business: Mr. Wendel, you founded HEXAGON GROUP AG with partners in 2018. What led you to take that step?
Christian Wendel: I had spent many years in commodity trading, working for a Swedish company, then an American corporation, where I eventually became CEO of its largest division. Later, I headed an American oil trading business. So I knew the industry from different perspectives. At some point, my partners and I decided to build something of our own. We founded Hexagon in Switzerland, bringing together our experience and international networks. Looking back, it was certainly the right decision.
European Business: Today, Hexagon generates around 3 billion USD in revenue. What exactly does the company do?
Christian Wendel: We specialize in the physical trading of fertilizers, raw materials used in fertilizer production, and chemical products. These include ammonia and sulfuric acid. Through a 50% participation, we are also involved in petrochemicals, including methanol and biodiesel. And when I say physical trading, I mean exactly that. You can go to a port, see our products, and touch them. We are not trading figures on a screen. We buy commodities where they are available in large quantities and transport them to regions where they are needed. Essentially, we balance supply and demand across the world.
European Business: That sounds like a substantial logistical operation.
Christian Wendel: It is. At any given time, we probably have 30 to 40 loaded ships traveling across the world’s oceans. Last year, we traded more than 7.2 million tonnes of products. And our work doesn’t end with buying and selling. We organize transportation, insurance, inspections, and payments. Customers receive a complete service. That is an important part of our business.
European Business: Who are these customers?
Christian Wendel: They range from major international corporations in the chemical, oil, and mining industries to regional businesses, cooperatives, and family-owned companies. Their needs differ considerably, but reliable access to materials is essential for all of them.
European Business: Many people associate fertilizers exclusively with agriculture. Is that too narrow a view?
Christian Wendel: Absolutely. These products and their raw materials are used in many industries. Sulfuric acid, for example, is important for mining as well as fertilizer production. Chemical raw materials are also needed in water treatment, food and feed production, metalworking, textiles, and pigments. They are part of countless manufacturing processes. People often don’t realize how dependent modern industry is on these basic materials. If their availability changes, the effects can spread through entire supply chains.
European Business: You mentioned the geopolitical crises. What concerns you most about their impact on commodity markets?
Christian Wendel: The consequences go much further than higher transportation costs. Many chemical products depend directly or indirectly on oil and natural gas production. Natural gas, for instance, is essential for manufacturing ammonia, which is used in nitrogen fertilizers. If supply becomes scarce, prices rise. And that creates a chain reaction. Chemical producers pay more, manufacturers face higher costs, and eventually consumers feel the effects. You cannot look at one commodity in isolation.
European Business: Does that put European industry at a disadvantage?
Christian Wendel: It can, particularly when European producers face higher energy and raw material costs than competitors elsewhere. Large corporations often have more options to absorb these pressures. Smaller and medium-sized companies must either raise prices, accept lower margins, or find alternatives. None of those choices is easy.
European Business: The consequences become even more serious when fertilizers are involved.
Christian Wendel: Yes, and this is something that worries me. When fertilizer prices rise, farmers face significantly higher production costs. In Europe, there are sometimes ways to cushion the impact. In poorer regions, farmers may be unable to afford sufficient fertilizer. That can mean lower crop yields and, ultimately, less food. I am particularly concerned about Africa, where further price increases and supply disruptions could contribute to a hunger crisis. We are talking about much more than commercial margins here.
European Business: Looking ahead, where do you see the greatest opportunities for Hexagon?
Christian Wendel: We still see considerable growth potential. We have already built a strong position in the market, and our aim is to expand and consolidate it. Asia remains particularly interesting, but our business is global. We want to continue growing profitably while maintaining the reliability our customers expect. The world will not become less complicated. That much seems clear. What matters is how you respond. You have to understand global developments, adapt quickly, and make sure the products reach the places where they are needed. That is what we do.