DEXP4 Dexxos Participações

Dexxos Participações S.A. is a publicly traded holding company with shares listed on B3 under the tickers DEXP3 and DEXP4, whose origins date back to the corporate reorganization process related to the former Refinaria de Petróleo de Manguinhos. Listed on the Brazilian stock exchange since 1997, initially under the name GPC Participações S.A., the company was structured to concentrate assets not related to refining activities, bringing together industrial businesses in the chemical and steel pipe segments. The group’s operational roots, however, are older: the chemicals business began in 1954 with Synteko Produtos Químicos S.A., while the basis of the ERW pipe business goes back to 1938, with operations at the Pavuna unit in Rio de Janeiro. Over the years, the company has undergone several mergers, industrial portfolio adjustments and the divestment of non-operating assets, culminating in the name change to Dexxos Participações S.A. in 2021 and its migration to B3’s Level 1 Corporate Governance segment.

Dexxos structures its business model as a holding company, focused on stakes in operating companies that rank among the main domestic players in complementary industrial niches. The group is mainly exposed to two segments: chemicals, through GPC Química S.A., and steel, through Apolo Tubos e Equipamentos S.A. and Apolo Tubulars S.A. The subsidiaries operate in the production, sale and delivery of chemical products – particularly thermosetting resins and specialty chemicals – and in the manufacture of steel pipes for conveying, structural uses and the oil and gas industry. In 2024, the chemical segment accounted for around 72% of consolidated net revenue, while the steel segment represented approximately 28%, underscoring the heavier weight of industrial chemicals in the group’s revenue and profit generation.

In the chemical segment, GPC Química produces formaldehyde, urea and phenolic resins and other derivatives primarily targeted at the reconstituted wood panel industry, such as MDF, MDP, plywood and OSB. The resins for wood panels are developed using technology that allows for low formaldehyde emissions and good reactivity, serving panel manufacturers in a market where Brazil stands out for its high forestry productivity. The company also supplies resins for impregnating decorative papers and laminates, resins for special applications in nonwovens for construction and textiles, edge banding, wood impregnation and cutlery, as well as various chemical additives. This portfolio is complemented by products such as formaldehyde scavengers, special catalysts and additives to reduce gas emissions in industrial plants. Beginning in 2024, GPC Química started operating a new specialty chemicals unit in Araucária (PR), aimed at expanding production capacity and developing new applications in industrial resins and specialty chemicals, in line with the group’s diversification strategy.

In the steel segment, Dexxos, through its subsidiaries Apolo Tubos and Apolo Tubulars, operates in the manufacture of electric-resistance welded carbon steel pipes (HFIW) under different specifications and technical standards. Apolo Tubos, with an industrial unit in Pavuna (RJ) and installed capacity of 80 thousand tons per year, produces pipes for conveying water, gas, compressed air and other fluids, conduit pipes for electrical and telephone installations, as well as structural pipes used in bridges, roofing, metal structures, the shipbuilding and automotive industries and the solar energy sector, in applications such as tracker-type supports and metal poles. Apolo Tubulars, with a plant in Lorena (SP) and capacity of 120 thousand tons per year, specializes in pipes for oil and gas exploration and production (OCTG) and line pipe, produced in accordance with API and NBR standards, with continuous manufacturing processes and a high degree of automation, including welding, heat treatments, destructive and non-destructive testing, threading and specific finishing steps.

Dexxos’ markets reflect the B2B nature of its subsidiaries, with strong ties to industrial and infrastructure sectors. On the steel side, Apolo Tubos operates in the civil construction, fire network and infrastructure project markets, supplying distributors, resellers and companies in the sector, with a higher concentration of sales in the Southeast region, especially Rio de Janeiro and São Paulo. Apolo Tubulars, in turn, is a relevant supplier of OCTG pipes to the onshore oil and gas industry and shallow-water offshore operations, and also serves the energy and general industrial segments, with a strong presence in the Northeast region and participation in the foreign market. The company holds a leading position in the Brazilian onshore OCTG pipe market, with market share above 50% in 2024. In the chemical segment, GPC Química mainly serves industrial manufacturers of wood panels and other sectors that use resins and additives as production inputs, with sales concentrated in the South (notably Paraná and Santa Catarina) and Southeast (especially São Paulo), along with still limited participation abroad.

The geographic footprint of Dexxos’ operations is distributed across industrial hubs considered strategic in Brazil. In the chemicals business, GPC Química maintains plants in Araucária (PR), Uberaba (MG) and Camaçari (BA), with combined capacity of more than 450 thousand tons per year of formaldehyde and over 600 thousand tons per year of resins and other chemical products, including hexamethylenetetramine. These units allow for agile service to the main wood panel clusters and other industrial segments in different regions of the country. In steel, Apolo Tubos’ plant in the Rio de Janeiro metropolitan area and Apolo Tubulars’ plant in São Paulo ensure proximity to large consumer markets, ports and the logistics network. Distribution is carried out mainly by road, supplemented by maritime operations in some cases, especially for supplying pipes to the oil and gas sector and for exports.

From the regulatory and technical certifications standpoint, Dexxos’ subsidiaries operate in sectors with strict quality, safety and compliance standards. Apolo Tubos manufactures pipes under ABNT NBR 5580, 5590, 5597, 5598, 8261 and 6591 standards, as well as ASTM A178, is authorized to use the Inmetro seal on certain products and holds ISO 9001 certification for its quality management system. Apolo Tubulars holds ISO 9001 and ISO 14001 certifications, as well as approvals under NBR standards specific to steel pipes and technological partnerships with international companies such as JFE, Metal One and Tuboscope, which certify products for oil and gas applications. In the chemical segment, the production of formaldehyde and resins is subject to regulations on chemical product control, and the subsidiaries obtain the necessary permits from public authorities and regulatory agencies for the purchase and sale of controlled substances. These requirements underscore the need for standardized industrial processes, traceability and environmental monitoring.

In terms of environmental, social and governance practices, Dexxos Participações maintains a Socioenvironmental Policy valid for the holding and its subsidiaries, approved in 2022, which guides business conduct under principles of sustainability, protection of life, reduction of environmental impacts and respect for human rights. The policy references guidelines such as the UN Global Compact, the Universal Declaration of Human Rights, GRI standards and the company’s Code of Ethics and Conduct. Dexxos explicitly states its stance against child labor, slave labor, discrimination, harassment and corruption, in addition to promoting occupational health and safety and the conscious use of natural resources such as water and energy. The governance structure includes an ESG committee responsible for providing strategic guidance on the sustainability agenda, spreading a socioenvironmental culture and reporting to the board of directors. On the social front, the group supports Associação Carlos Fernando Coutinho, a non-profit organization that has been running social projects since 1996, and maintains a non-partisan stance, making no donations to political parties or election campaigns, in line with its code of ethics.

Dexxos’ recent trajectory also includes initiatives in capital management and corporate structure. Between 2022 and 2023, the company advanced its plan to monetize non-operating assets, selling remaining land in Benfica, Rio de Janeiro. The company approved a profit allocation policy in 2023, strengthening its governance framework, and took out significant financing with FINEP, both at GPC Química and Apolo Tubulars, aimed at investments in innovation, capacity expansion and technological development. In 2024, Dexxos completed the merger of GPC Química and Apolo Tubos e Equipamentos shares, coming to hold 100% of the capital of these subsidiaries, and began operating the specialty chemicals unit in Araucária. In the same period, the company approved a share buyback program for common shares, covering up to 4% of the free float, which reinforces active capital management while maintaining the holding structure listed on B3 as the vehicle for consolidating results and strategically coordinating the chemicals and steel pipe businesses.