Interview with Eduardo Hochschild, interviewed by Andrea Lluch, Lima, Peru

Description

In this interview, Eduardo Hochschild, narrates the impressive arc of his career, describing how he worked his way from the bottom up to become the head of his family's 106-year old business in the Peruvian mining industry. Although he trained as an engineer in the United States, Hochschild remarks that his first years working in the company's mines helped him to gain a lasting appreciation of the practical knowledge and expertise required in the industry--two characteristics that he says have become central to Hochschild Groups' long-term success. Hochschild goes on to discuss some of the challenges the group has faced doing business in Peru over the past few decades. He talks about the period of Shining Path terrorism, the challenges that this posed to mine workers, and some of the strategies he used to navigate that difficult period. He also discusses prolonged periods of macroeconomic turbulence in Peru, from the relatively closed economy in the 1980s to the opening in the 1990s--describing the group's strategies regarding foreign partnerships, debt management, and regional expansion. In the interview, Hochschild also talks about some of the factors motivating the group's decision to go public on the London Stock Exchange in 2006, and the benefits that this had for the group in germs of encouraging best corporate practices and facilitating growth. He also attributes of the company's success to the role of family business in guiding the group's development and encouraging a more long-term vision and strategy. Hochschild goes on to address the challenges and opportunities associated with working in a highly internationalized. Unpredictable fluctuations in international commodity pricing can have disastrous effects on corporate debt. Yet the group's prominent place in the Peruvian mining industry has also opened the door to numerous partnerships with foreign companies as they attempt to enter the Peruvian market. Hochschild concludes the interview by discussing his thoughts on corporate social and environmental responsibility, highlighting the group's efforts to develop underground mining (rather than open-pit mining), as well as initiatives to bring education to rural communities. He is also the founder and chairman of UTEC (Universidad de Ingenieria & Technologia), a non-profit engineering university in Peru committed to training the next generation of skilled professionals in Peru.

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