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Grupo Fósforo with a Century of Tradition, Innovation, and Sustainability

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In most Chilean households, the presence of a small box of matches is almost a tradition. Despite the evolution of fire-starting tools, such as electric and autonomous lighters, matches remain a common item in daily life.

This resistance to change is no coincidence, as in Chile, a century-old company continues to manufacture these "micro-products with added value"—essential items that remain relevant in homes across the country. This is the case with Grupo Fósforo, a Chilean company with over 100 years of history, which, with its production plant in Retiro, Maule Region, and another in Los Lagos, Los Rios Region, has managed to stay competitive by focusing on sustainable, high-quality products.

Diego de la Maza, General Manager of Grupo Fósforo, highlights that one of the company's pillars is its ability to take a "very noble" raw material like poplar and pine and transform it into products that not only meet high-quality standards but also generate local employment and align with the world's most demanding environmental certifications.

"It’s a pride to know we’re making a 100% sustainable product," the executive remarks, emphasizing the company’s positive environmental impact.

Throughout its journey, Grupo Fósforo has proven to be an exception in a sector where many companies have short life cycles. Matches, a product that seems to have been overshadowed by modern technologies, remain crucial in daily life—whether for lighting a stove, charcoal for a barbecue, or simply as a reliable light source during blackouts, as recently experienced in Chile.

Resistant to the Passage of Time

In a world where electric stoves and lighters seem dominant, matches remain relevant, accessible, and essential. "Matches are a super affordable product, available in any supermarket, and priced accessibly for everyone," asserts de la Maza. While some prefer modern alternatives like electric lighters, he argues that these have limited lifespans and generate non-recyclable plastic waste.

In contrast, matches are fully biodegradable, decomposing naturally after use. This much lower ecological footprint is one reason matches remain a preferred choice in many households.

New Market Niches

Grupo Fósforo has successfully diversified over the years. One example is its venture into manufacturing ice cream sticks, a product requiring millimeter precision and superior quality to meet market demands. "The ice cream stick cannot splinter; it must be very straight and precisely dimensioned," explains de la Maza, highlighting the meticulous attention to detail in its production.

Additionally, Grupo Fósforo has entered the wooden cutlery market, which is expanding, especially internationally, where sustainability is valued. Though a significant portion of these utensils are currently sold in Chile, de la Maza sees great potential in exporting to Europe and the U.S., where consumers increasingly prioritize eco-friendly products.

The company also produces fire starters—a flammable element made from wood scraps that stays lit for 8 to 10 minutes, ideal for lighting fireplaces, grills, or open fires.

Certifications and Sustainability

One of Grupo Fósforo’s key differentiators is its commitment to sustainability. The company has earned some of the world’s most stringent environmental certifications, enabling it to compete in international markets where sustainability is decisive. However, de la Maza notes that not all competitors can claim the same. "We’ve seen rivals claiming certified products that aren’t actually certified," he warns, stressing the importance of transparency and high standards.

Beyond certifications, Grupo Fósforo prides itself on meeting deadlines and service quality. "We have an on-time delivery rate of over 99%," says de la Maza, emphasizing their dedication to exceptional customer service.

Source of Employment

Grupo Fósforo is not only a key player in industrial products but also a major local employer. "We’re one of the largest job providers in our operational areas," notes de la Maza, underscoring the company’s vital role in the local economy. During peak seasons, it employs up to 800 people, significantly contributing to nearby communities' well-being.

Technological Innovation

Despite its 100+ year history, Grupo Fósforo remains at the forefront of technology. The company still uses some of its oldest machines, over 60 years old, which operate as efficiently as when first installed. "These machines, though not fully automated, are exceptionally high-quality and require specialized maintenance to keep producing top-tier products," explains de la Maza.

Holistic Approach

The company demonstrates that true sustainability involves a comprehensive commitment to the community and continuous production improvements. From crafting high-quality, specialized products to actively collaborating with neighbors—supporting local projects and donating to schools and neighborhood associations—the group works hand-in-hand with its surroundings.

However, the path to sustainable production also faces challenges, particularly in training new workers. In a market increasingly demanding skilled professionals in technical areas like forestry machinery operation, companies are fostering partnerships with technical schools to prepare the next generation of workers for industry demands.