Wetzel S.A. is a Brazilian industrial company founded on April 11, 1932, originally under the corporate name Schmidt, Wetzel & Cia., with an initial focus on manufacturing brass faucets and valves. Starting in the 1950s, the company expanded its production scope by entering the manufacture of aluminum parts, mainly aimed at power installation, transmission, and distribution. In 1966, it was converted into a corporation, adopting the name Metalúrgica Wetzel S.A., and in 1984 it went public, with its shares starting to trade on the market. Its corporate trajectory includes acquisitions, mergers, and reorganizations, such as the purchase of control of Metalúrgica Douat S.A. in 1988 and the subsequent merger of Wetzel Fundição de Ferro S.A. in 1998, when the company adopted the name Wetzel S.A., the current corporate name under which the tickers MWET3 and MWET4 are traded on B3.

Since its inception, Wetzel has established itself as a metallurgical and materials processing company, operating in components made from ferrous metals, non-ferrous metals, and plastics. The company directs its production to power transmission, distribution, installation and lighting chains, in addition to applications across several industrial sectors. Over time, it has forged strategic partnerships, such as joint ventures focused on the production of automotive filters and plastic parts for electrical applications, always with an eye to complementing its portfolio of industrial components. The company has invested in quality and management certifications such as ISO 9001, ISO TS 16949, IATF and ISO 14001, reinforcing its positioning as a qualified supplier to industries with high technical requirements.

Wetzel’s business model is structured into two main units: the Aluminum Automotive Components Unit, known as Wetzel Automotiva, and the Electrical and Lighting Components Unit, called Wetzel Eletrotécnica. The Automotive unit focuses on producing cast and machined aluminum parts for the truck, bus, and light vehicle assembly chain, using high-pressure, low-pressure, and gravity casting processes, and supplying raw castings, machined parts, and assembled sets. Eletrotécnica manufactures exposed electrical installation materials in aluminum and PVC, industrial LED lighting, and solutions for classified areas with international certification, serving mainly civil construction, infrastructure, and industrial installations. The company’s net revenue is generated by these two segments – automotive and electrotechnical – and is reported on a consolidated basis, without margin breakdown by business unit.

In the automotive segment, Wetzel Automotiva concentrates its expertise on components of medium and high technical complexity, supported by a casting and machining industrial park of about 16.3 thousand square meters. The production process includes casting parts with different weights and geometries, with the possibility of heat treatments according to customer specifications. The in-house laboratories are equipped for tests of mechanical properties, metallography, chemical composition analysis, crack inspection, three-dimensional measurement, leak tests, and X-ray analysis, among others, allowing the company to meet the requirements of light and heavy vehicle manufacturers and tier suppliers. Demand dynamics in this segment are directly linked to the performance of motor vehicle sales in the market, with seasonal impact from scheduled shutdowns of customers, especially between December and January.

In the electrotechnical segment, Wetzel Eletrotécnica develops, produces, and markets a broad portfolio of electrical installation materials and industrial and commercial lighting, with in-house manufacturing and a focus on industrial, infrastructure, port, airport, and general civil construction applications. The product lines include exposed installation materials in aluminum and PVC, luminaires and LED lighting systems for industrial environments, and products for classified areas that require specific certifications due to explosion risks. The unit has in-house laboratories for quality testing, which supports the development of products that meet technical and regulatory standards. Sales of this product line are carried out through a nationwide network of sales representatives, complemented by the company’s own sales and technical consulting team.

Wetzel’s customer base is diversified across both operating segments. At the company level as a whole, there is no single customer accounting for more than 10% of total net revenue, although in each business unit there are customers that individually exceed this share. Physical distribution of products is carried out mainly by road transportation for the domestic market and by sea freight for exports. In 2024, revenue from Brazil represented 99.72% of consolidated net revenue, totaling approximately R$ 278.99 million, while foreign sales accounted for 0.28%, around R$ 0.78 million, which underscores the essentially domestic nature of its operations.

From a regulatory standpoint, Wetzel’s industrial activities require a set of licenses and authorizations at different levels of government. The company maintains environmental operating licenses issued by the Instituto do Meio Ambiente de Santa Catarina (Santa Catarina Environmental Institute), as well as permits for water withdrawal and discharge of treated effluents, authorizations for the use of certain chemical products controlled by the Brazilian Army and the Federal Police, location permits, and authorizations for receiving and disposing of waste. The electricity and natural gas suppliers serving the company are subject to regulation by specific government agencies. In terms of intellectual property, the organization follows a policy for protecting and renewing its trademarks, with the “WETZEL” brand registered in several classes at the INPI in Brazil and abroad, and it maintains patents in line with applicable legal terms.

In the environmental, social and governance field, Wetzel states that it incorporates practices aligned with the ESG agenda, although it does not yet publish an annual report specifically consolidating these indicators. The company maintains environmental management systems certified under ISO 14001:2015 at its industrial units, monitors indicators such as solid waste generation and energy consumption relative to production volume, and operates its own industrial Effluent Treatment Plant, focused on reducing environmental impacts. Social responsibility initiatives include technical training programs, periodic training on occupational safety standards, and leadership development projects such as the Programa Transformar – Academia de Liderança Wetzel – and talent retention initiatives like the Programa Pertencer. The company emphasizes diversity and inclusion policies, encouraging the reporting of discriminatory practices and seeking socio-environmental alignment in supplier assessments, forming a set of governance and people management practices that complement its industrial operations. The common and preferred shares issued by Wetzel, traded under the tickers MWET3 and MWET4 on B3, reflect exposure to this evolving combination of industrial, regulatory, and ESG management activities.