Mangels Industrial S.A. is a Brazilian company with a long track record in industry, founded on October 1, 1928, by Max H. H. Mangels Jr. and Heinrich Kreutzberg. Formally incorporated as a corporation in 1959, the company began by producing galvanized steel buckets at its first plant in the Mooca district of São Paulo, in a context in which the country still lacked structured water supply systems. Over the following decades, Mangels expanded and diversified its operations, keeping pace with Brazil's industrial development. In 1971, it went public and its shares began trading on what was then the São Paulo Stock Exchange, now B3, consolidating its position as a securities issuer regulated by the CVM.

Mangels' evolution was marked by moves into industrial diversification and adaptation to Brazil's infrastructure and energy demands. As early as 1932, the company began manufacturing hardware for electric power distribution and transmission lines, serving the expansion of the grid installed by Light. In 1938, it started producing cylinders for the distribution of liquefied petroleum gas (LPG), placing it in a segment essential to residential and commercial energy supply. In the 1950s, with a new generation of the Mangels family taking over management, the company entered the nascent automotive industry, producing wheels and auto parts to international standards, aligning itself with the cycle of accelerated industrialization encouraged by the Juscelino Kubitschek administration.

From the late 1960s onward, Mangels intensified its expansion and verticalization program around the steel and metal components value chain. In 1969, it inaugurated a new plant in São Bernardo do Campo for the production of steel strips and acquired companies in the rolling sector, as well as installing the first Steel Service Center in Latin America. In the 1970s, it expanded its industrial base with a third plant dedicated to LPG cylinders in Três Corações (MG), and with the acquisition of a steel strip rolling mill featuring advanced technology in alloys and heat treatment. In 1989, it took another significant step by installing an aluminum alloy wheel factory, complementing its existing steel wheel production and structuring the organization into three business divisions: Steels, Wheels and Cylinders.

Today, Mangels Industrial structures its activities into three main business units: the Wheels Unit, the Cylinders Unit (including air tanks and automotive axles), and the Steel Service Center. The Wheels Unit, located in Três Corações (MG), is responsible for manufacturing original aluminum wheels for vehicle assemblers. The Cylinders Unit, also in Três Corações, produces LPG cylinders (new cylinders), compressed air tanks for truck and bus brake systems, and stamped components for the market. The Steel Service Center, located in Manaus (AM), supplies flat steel sheets to the motorcycle industry and manufactures rear axles in the form of “V”-profile steel blades for light vehicles. The company's shares, traded under the tickers MGEL3 and MGEL4, remain listed on B3, and the company joined the Level 1 Corporate Governance segment in 2003, reinforcing its transparency commitments to the market.

From a revenue generation standpoint, the Wheels Unit is Mangels Industrial's main segment. In 2024, this unit accounted for 62.25% of consolidated net operating revenue, followed by the Cylinders Unit with 27.41% and the Steels Unit (Steel Service Center) with 10.34%. The company is highly exposed to the automotive and transportation sector, with customers classified as “Vehicles” representing 67.33% of total net revenue in 2024, while the LPG segment accounted for 23.25% and other customers for 9.42%. Geographically, most sales are in the domestic market, which accounted for 99.28% of operating revenue in 2024, with a residual share from exports to countries in South America, North America and Africa.

Mangels' production processes combine aluminum and steel metallurgy with industrial stages of cutting, forming, welding, heat treatment, painting and testing. In the Wheels Unit, the typical aluminum wheel manufacturing flow involves casting, machining, finishing and packaging. In the Cylinders Unit, the production of new LPG cylinders uses carbon steel coils, which undergo cutting, forming, welding, heat treatment, painting and quality testing. The same carbon steel base is used to manufacture air tanks for heavy vehicle braking systems, with stages of cutting, forming, welding, testing and painting, in addition to requalification activities for LPG cylinders and the supply of stamped components. At the Steel Service Center, the company performs longitudinal and cross cutting of sheets to demanding specifications, and applies high-technology processes and large presses in the production of “V”-profile axles.

Product distribution is carried out directly by Mangels itself, both for the wheels and cylinders lines and for the Steel Service Center. Sales are handled by in-house sales teams and representatives, without dedicated distribution centers. Among the main markets served, the company highlights car, motorcycle, truck and bus manufacturers, as well as household appliance manufacturers and LPG distribution companies throughout the country, resulting in a diversified corporate customer base, albeit concentrated in specific industrial sectors. The operating performance of each unit is tied to the production cycle of light vehicles, heavy vehicles and motorcycles and to LPG demand, segments that in 2024 showed growth in national production statistics.

Mangels Industrial maintains a significant industrial presence in different regions of Brazil, with plants in São Bernardo do Campo and Guarulhos in the state of São Paulo, and in Três Corações (MG), in addition to a Swap Center in Araucária (PR) linked to the Cylinders Unit, and the Steel Service Center in Manaus (AM). The company is subject to a broad set of licenses and authorizations to operate, especially at its plants in Minas Gerais, Paraná and Amazonas. Regulatory requirements include environmental licenses from state and federal agencies, technical registrations with IBAMA and local environmental entities, operating permits from municipalities and health authorities, fire department inspection certificates and specific registrations with the Ministry of Defense, the Federal Police and state civil police forces, reflecting the regulated nature of activities related to pressurized products and sensitive materials.

Regarding environmental, social and governance (ESG) practices, Mangels states that it discloses information through a Sustainability Report available on its corporate website. The document does not yet follow a specific methodological standard nor is it audited by an independent entity, but it incorporates internal indicators such as CO2 emissions and takes climate change into account in risk management. The company prepares an inventory of greenhouse gas emissions and adopts integrated management policies that encompass raw material consumption, emissions, waste and effluents. Although it has not yet fully incorporated formal materiality matrices and the UN Sustainable Development Goals into its current reports, the company indicates an intention to consider the SDGs in future reports and states that risks and relevant topics are addressed in stakeholder forms and internal risk analyses, gradually aligning its governance with investor and broader stakeholder expectations.

Finally, Mangels Industrial depends on strategic metal inputs such as steel, aluminum and zinc, purchased mainly from a few large suppliers, which limits competition and can generate price volatility. Steel prices track international commodity movements, while aluminum follows London Metal Exchange (LME) quotations. These characteristics heighten the company's sensitivity to global metals cycles. The continued management by the founding family, evidenced by Mark Ross Mangels' assumption of the chairmanship of the board of directors in 2023, and the continued listing of MGEL3 and MGEL4 on B3 offer individual investors a company with a strong historical connection to Brazil's industrial sector, significant exposure to the automotive sector and to the LPG market, and diversified operations in metal products geared mainly to the domestic market.