The chemical COO is changing: what companies need from their next operations leader

Global chemical production is forecast to grow by only 2% this year, while persistent overcapacity and softer demand continue to pressure operating rates and margins. Profitability, supply chain resilience and AI adoption are among the industry’s main priorities for 2026.

Against that backdrop, companies are asking more of their operations leaders. Technical manufacturing expertise remains important, but many businesses now need a COO who can connect plant performance with margin, capital allocation, supply chain decisions and growth.

For chemical and specialty chemical businesses in Mexico and across Latin America, that combination is particularly valuable.

Operations leadership is becoming more commercial

The traditional route to a chemical COO role has often centred on manufacturing expertise:

• Improving reliability
• Increasing throughput
• Controlling costs
• Maintaining strong safety performance

Those skills remain essential, but operational decisions now need to be made with a clearer view of their commercial impact.

When demand is weak and excess capacity is weighing on margins, producing more efficiently is only part of the challenge. COOs may also need to decide where capacity should sit, which product lines justify further investment, where working capital can be released and how manufacturing networks should respond as demand shifts.

A recent survey of chemical executives found that 58% said overcapacity was having either a heavy or modest negative impact on their company. Respondents cited operational efficiency, supply chain optimisation, cost improvement and technology adoption among their priorities for the next 18 to 24 months.

P&L judgement therefore carries more weight in the COO brief than it once did.

When hiring, companies should look beyond traditional operational measures such as output, uptime or cost per tonne. A candidate’s record of improving EBITDA, margins and return on invested capital can provide a better indication of how effectively they connect operational performance with the economics of the business.

Mexico is making supply chain capability more valuable

Mexico presents its own set of operational challenges. The country attracted a record US$40.9 billion of foreign direct investment in 2025, while the chemical industry ranks among Mexico’s largest recipients of cumulative FDI. Regional manufacturing supply chains are also changing as companies reconsider sourcing, production locations and their exposure to trade disruption.

The performance of Mexico’s chemical sector shows some of those pressures. ANIQ reported that chemical production volume fell 3% in 2025. Imports rose 2.7%, while apparent domestic consumption declined 2.4%. In value terms, the country’s chemical trade deficit reached US$28.2 billion – 14.3% higher than in 2024.

That gives COOs a wider set of decisions to make around sourcing, inventory, supplier risk, production footprint and regional capacity.

Companies hiring in Mexico are likely to place greater value on leaders who understand both local operations and the wider North American supply chain. Experience across the US, Mexico and other Latin American markets can be especially useful where a business is consolidating production, changing its sourcing model or building regional supply capability.

AI will change the job, rather than replace its fundamentals

AI and automation are also widening COO specifications. Chemical companies are already using digital technologies in operational planning, process optimisation, safety, energy management and R&D. AI adoption will remain one of the sector’s main priorities during 2026.

That does not mean companies need to hire a COO who is a technology specialist. More important is the ability to identify where technology can deliver a measurable operational or financial return.

A strong candidate should be able to tell the difference between an interesting pilot and an investment that can work at scale. They also need enough credibility across the organisation to bring plant managers, engineers, IT teams and finance leaders through implementation.

Change management, confidence with data and cross-functional leadership are therefore becoming more important alongside established operational skills.

Energy and sustainability are becoming operating metrics

Energy efficiency has always mattered in chemicals because of the sector’s energy-intensive production processes. With margins under pressure, the financial case for reducing energy use increasingly overlaps with sustainability objectives.

Chemical COOs therefore need to understand how energy, emissions, reliability and capital investment interact at plant and network level.

The strongest operations leaders will treat sustainability targets as part of plant economics and asset strategy rather than as a separate corporate programme. That calls for experience making trade-offs between short-term performance and longer-term investment, particularly in capital-intensive businesses.

Hiring the next chemical COO

Chemical companies may need to broaden how they define the COO profile.

Plant experience and a strong safety record remain fundamental. Beyond that, hiring briefs increasingly need to test for P&L ownership, margin improvement, supply chain restructuring, digital implementation, energy management and experience leading across countries or business units.

The interview process should also probe judgement, not simply achievements.

• Which investments did the candidate stop as well as approve?
• How did they respond when volumes fell?
• Did technology projects produce measurable improvements?
• How have they redesigned supply chains when cost, service and resilience pointed in different directions?

These questions give companies a better indication of whether a candidate can lead operations in the conditions chemical businesses are facing in 2026.

At Proco Group, our Industrial practice works with chemical and specialty chemical companies across Latin America and international markets to identify senior operations and executive talent. As COO responsibilities expand, the challenge is finding leaders who combine operational depth with commercial judgement and relevant regional experience.

To discuss the Chemical COO talent market in Mexico or Latin America, or your organisation’s senior leadership requirements, contact Proco Group.