Grupo Nueva, new dynamics

After the Rio Summit, my business outlook was influenced not only by a new view of sustainable development but also by the comeback in Latin America following its ‘lost decade’ of the 1980s. It was a time of great hope for that vast region, so rich in human and natural resources. For some countries, globalization was the great opportunity to expand their markets and achieve economic success. For others, it initially implied even tougher competition and an even more intense exploitation of their natural resources. In any event, the step towards globalization had been taken, and the world had begun to shrink

In many Latin American countries, inflation was being brought under control, the balance of payments was on a more even keel, and companies were growing more efficiently. Yet, the inefficiency that for long had been the rule in public administration, sheltered by political elites defending partisan interests, was being unmasked but not eradicated; and unemployment continued rampant in many sectors. Both problems continued into the 1990s, the main sufferers being, as always, the poor.

At the close of the summit I was 45 years old. I owned three international corporations: one with investments in high-tech companies in Europe; an Asian-European trading group; and GrupoNueva, focused on pipe systems and forestry in Latin America. In the course of my business career I had experienced just about everything imaginable: I had reached the very top, been on the brink of bankruptcy, and worked very hard to get back to the top. I had won, lost, innovated, restructured, sold, and diversified. I had experienced great success and complete failure.

I thought of my future and knew that ‘more of the same’ would not be enough of a challenge for me. I felt much too young to spend the next 20 years -- assuming that I would retire at age 65 -- buying, selling and diversifying companies. I therefore decided to sell my businesses based in Switzerland. I was pleased to realize that my business acumen still served me well: my companies had reached their maximum potential and were ready to be passed on to the right buyers. The sale of these companies gave me the means to finance my new plans.

As I significantly increased my investments in Latin America, it made less and less sense to maintain my base of Latin-American operations in Switzerland. So, I moved it to Costa Rica, the so-called ‘Central American Switzerland,’ a country I knew very well as I had regularly visited it for the past 25 years and where I had made some of my best friends. Its geographic location allowed me to be closer to my customers and associates in my business and philanthropic activities, and to share my thoughts on the region in their own language.

When I founded GrupoNueva in 1994, it was an industrial holding generating value for its shareholders and society with leadership positions in the Americas in the areas of forest industry and construction materials. Its business divisions at the time were: Amanco, leader in Latin America in the production and marketing of products for the conduction of fluids (tube systems) and light construction systems (Plycem Construsistemas); and Masisa, an integrated forestry company with an international sales marketing organization for wood products. For practical reasons its head office was moved from Costa Rica to Santiago, Chile. Due to strategic reasons the Amanco division was sold in March 2007 and the Plycem division in December 2007.

All GrupoNueva companies had a single common denominator: their corporate philosophy, based on three complementary areas of responsibility: profitability, social responsibility, and environmental management.

GrupoNueva's goal was to be a leader in all markets where it operates and in customer satisfaction, focusing on long-term growth of invested capital in order to attain profitability. Corporate social responsibility was one of the key elements of sustainable development. The group's vision, as defined in its sustainability reports, stated: "To be recognized as a leading industrial group in Latin America, operating in a framework of ethics, eco-efficiency, and social responsibility that generates economic value and improves our neighbors' and our region's quality of life."

GrupoNueva has succeeded in improving its profitability and competitiveness over the last few years, as many other Latin American companies in similar businesses went under. I attribute this success to strong leadership, to a teamwork inspired by a shared set of values, and to the hard work done to quantify and disseminate the true meaning of those values in terms of social impact, environmental impact, and profitability. In 2002, GrupoNueva published its first independently audited sustainability reports.

As the result of my freedom to manage and dispose of my assets, I could invest in businesses with great long-term growth potential. Part of these investments were earmarked for tree planting, thus helping to prevent erosion and remove carbon dioxide from the atmosphere. In addition, these investments created new jobs in rural areas and provided employees with health services, training programs, and reasonable salaries.