Sr. Julian Siucho Dextre - CEO- San Martìn

Julián Siucho President of San Martín

Press Tribune. Could you make a brief history introduction of San Martin?

Sr Siucho: The company began in the 70s; at that time we were basically oriented to heavy machinery, rental heavy machinery. Over the years and the transformations that Peru had, the company became specialized. From being a rental company, we became a specialized company in services for the mining industry, directed towards operations of open pit and mountaintop removal in general. We operate the mining proccess from the perforations, blast, loading and transport of mineral or sterile material. In the meantime we were evaluating other businesses opportunities. We started with construction, working with foreign or national companies and a few years ago we decided that we would also have to focus on the public sector. That summarizes the history of the company: from being a rental company for heavy machinery, we became a specialized company focused on services for the mining and construction sectors. At the moment we have operations with Gold Fields, La Cima, Shougan Hierro Peru, Cementos Lima, Cemento Andino, Hunt Oil, Central Hidroelectrica El Platanal, Sedapal…

Press Tribune. The construction sector is the one that grew the most in 2006 and the mining sector is the major exporter of Peru with over 50% of the total exportations. Did San Martin grow at the same path than these two sectors in 2006?

Sr Siucho: Definitively those are the most dynamic sectors in the Peruvian economy in 2006, last year San Martin had a turnover of 102 million dollars. This year we have sold 90 million dollars nevertheless we hope to obtain two projects before the end of the year, with those projects our sales should surpass 2006.

Press Tribune: Regarding the growth of the economy do you forecast to increase your number of units?

Sr Siucho: The investment always goes hand-to-hand with new projects At the moment we are waiting for some projects before the end of the year, with which San Martin will possibly increased its machinery.

Press Tribune: What brand names dominate the machinery sector in Peru?

Sr Siucho: Caterpillar is the leader in heavy machinery; I would say Volvo and Scania right now are very aggressive. Nowadays all the brands offer competitive products, the difference is in the post-sale service, support and the spare parts stock, there is no bad machinery, but different dealers.

Press Tribune: What are the company values, its philosophy?

Sr Siucho: We are descendants of Chinese and for us respect is very important, integrity and trust, those are fundamental values for us, we promote them within the company and encourage that they are taken at home also. Teamwork is fundamental and nobody is more important than the team. We also promote the development of young talent just graduated from universities, we also have a Machinery Operators School, possibly the only one in the country. We think that we have a great responsibility not only with the company but with the country, to provide proactive professionals with Management potential.

Press Tribune: How would you describe your management style?

Sr Siucho: I am a facilitator; my job is to make sure that others get their job done right and to equip them with the necessary tools for the suitable management with the company. Also part of my time I dedicate to evaluate the performance and behavior of people and how could they contribute to the development of the company. To detect hidden talent that all organization have and must motivate, to help them develop management abilities is also part of my management, helping each member obtain an holistic vision of the organization is a challenge. At the end of the day directing people is an art and to transform that art into positive results by means of good practices and clear policies is my work and also to look put for the company so that it will last over time.

Press Tribune: Do you have plans to develop activities outside Peru? Are you interested in Chile?

Sr Siucho: Definitively, we are interested in other markets, that is part of our policy, to keep growing and so in the last years we have received invitations for projects in Chile, Colombia, Central America and the Caribbean, specifically Dominican Republic, but the Peruvian market has been reactivated very fast, so it has forced us to pospone the possibility of expanding to international markets at the moment, maybe next year we we will have some news. Peru in mining has projects like Toromocho, Michiquillay, Bayóvar, La Zanja, Quellaveco, Majaz, Canaryaco, Cerro Lindo, Marcobre, etc.. In the construction sector lots of roadwork projects are coming, infrastructure, Energy, housing, etc. Peru has a deficit of over a million and 200 thousand houses and is necessary to work in that.

Press Tribune: What impact do you think the FTA with the United States will have on the Peruvian economy?
Sr Siucho: Definitively a very positive one, we are talking about a Free Trade Agreement with the biggest economy in the world, that is going to stimulate our economy. Our companies will have to expand their plant capacity in order to produce more, they will hire more employees and better paid ones, in that higher spending market we will have better prices for our products. The tax deduction in custom duties for machinery will be immediate, that will allow the creation of new companies or extensions of the present ones, therefore more job opportunities. It is the way to the competitiveness of the Peruvian companies, the competition no longer is your neighbor, but the companies of the rest of the world. Definitively it is necessary to work with the sectors that will be affected, but the government must play an important role in promoting the gradual substitution for exportable products, as well as to making up for the affected ones. The FTA brings more benefits to the Peru that problems. The FTA must be signed and must be welcomed by all the Peruvians.

Press Tribune: How do you perceive the incoming of the American and Canadian investment in Peru? What about Chinese investments?

Sr Siucho: All investment is welcomed specially if it comes from economies bigger than ours, The fact that mora American and Canadian companies are investing in Peru is a good sign that the Country is on the right track, is the reflection that our country is providing the right conditions so that these investments occur. The American and Canadian investment is focused mainly in the Mining and Fuel sectors nevertheless they are present in manufacture, financing and insurances sectors. Peru has initiated conversations with Canada for a FTA. The Chinese are on the search of raw materials for their industries and food for their population during rain seasons and are watching Peru by a lot of interest, Peru must be prepared for this incoming export wave to China and must invest in expanding highways, docks, airports, transport services, logistic in general. Conversations with China for a potential commercial agreement will begin in September.

Press Tribune: Does that mean competition for other foreign investors?.

Sr Siucho: By all means; and is healthy. I believe that if Peru reaches that degree of investment in the 2008, Peru will become attractive for the investors all over the world. It will attract investors who nowadays do not know Peru, we are going to be in the big picture and that will stimulate the incoming of investments to our economy, besides lowering interest rates for the companies in general. Peru hopes to close this year with a 7% growth.

Press Tribune: What will be your message to our readers?

Sr Siucho: The first come and visit Machupicchu, the new wonder of the world and second do not forget about San Martin as your first and best choice for their mining and construction businesses. The experience acquired through the years, the investments and the staff of professionals makes us experts in the handling of these projects. Being local being has allowed us to develop strategies and policies for an customized handling in the relations with the communities where we operat. At last, let me congratulate Press Tribune for being interested in making these articles on Peru.