MYPK3

Iochpe-Maxion S.A., listed on B3 under the ticker MYPK3, is a Brazilian company with global operations in the auto parts industry, focused on the manufacture of automotive wheels and structural components for vehicles. Its origins date back to 1918, when the Ioschpe family began activities in the timber sector and, over the following decades, diversified into the financial and industrial segments. In the 1980s, the company also began operating in the agricultural sector, in a period marked by acquisitions and expansion. In 1984, the company’s shares began trading on the then São Paulo Stock Exchange, now B3, consolidating its presence in the Brazilian capital market and paving the way for a trajectory of growth and restructuring focused on the automotive and rail industries.

In the 1990s, Iochpe-Maxion redesigned its portfolio, concentrating efforts on the production of auto parts and rail equipment, with the divestment of assets considered non-core. In 1998, it began a corporate restructuring process that included the issuance of common shares subscribed by BNDESPAR and Banco Bradesco. In the early 2000s, it transferred 50% of its rail business to Amsted Industries of the United States, forming the Amsted-Maxion joint venture. As a result, the company began to direct its resources more intensively to the automotive segment, especially wheels and structural components. In 2008, it migrated to B3’s Novo Mercado segment, converting all preferred shares into common shares, reinforcing corporate governance practices. From 2009 onward, it went through a significant cycle of international expansion, with acquisitions of wheel operations in Brazil, Mexico, the US, Europe and Asia, as well as investments in joint ventures in South America and China.

Iochpe-Maxion’s business model is now essentially concentrated in the automotive segment, which accounts for 100% of consolidated net revenue. The company organizes its operations into two main platforms: Maxion Wheels and Maxion Structural Components. Maxion Wheels is responsible for the production and sale of a broad range of steel wheels for light vehicles, commercial vehicles and agricultural machinery, as well as aluminum wheels for light vehicles. Maxion Structural Components manufactures side rails, crossmembers, assembled chassis for commercial vehicles and structural stamped parts for light and commercial vehicles. This structure allows the company to serve various categories of global automakers, with products that directly integrate the structural architecture and running gear system of vehicles.

From an industrial standpoint, Iochpe-Maxion operates with complex, engineering-intensive production processes. In the structural components area, the flow involves preparation of steel sheets in coils, pickling, cutting, forming in presses, drilling, assembly, pretreatment, painting and anti-corrosion finishing. In steel wheel manufacturing, the process covers the production stages of the disc and rim, with drawing, stamping, roll forming, welding, rolling, expanding, machining and subsequent joining of the parts, finished with E-coat and powder painting. For aluminum wheels, the cycle includes casting of special alloys, pressure molding in die-casting machines, X-ray testing, heat treatment, machining and electrostatic painting, with different types of finishes, such as painted, diamond-cut and polished. The company carries out preventive and corrective maintenance routines in its plants and maintains insurance coverage for operational and civil liability risks.

Iochpe-Maxion, through its subsidiaries Maxion Wheels and Maxion Structural Components, operates 33 manufacturing units in 14 countries across the Americas, Europe, Asia and Africa, employing around 17,800 people. In Brazil, its home country, revenue attributed to local customers accounted for approximately 28% of total net revenue in 2024, while most of its revenue comes from foreign markets, with a significant presence in Mexico, Germany, Italy, the Czech Republic, Turkey, India, China, South Africa, among others. The company does not use dedicated distribution centers, adopting a model in which shipments are made directly from the industrial units to automakers, predominantly by road transport, including systems such as the “milk run,” in which the automakers themselves collect products at the plants.

Iochpe-Maxion’s competitive positioning is that of a global supplier to the automotive industry, focused on major manufacturers of light and commercial vehicles. Internal market studies based on data from specialized consultancies indicate that the company holds significant shares in global production of steel wheels for light and heavy vehicles, as well as a meaningful share in side rails and chassis in the Americas. In 2024, two major global commercial vehicle groups, Daimler Truck AG and Traton, each accounted for more than 10% of the company’s net revenue, reinforcing the concentrated and large-scale nature of its commercial relationships. Demand for Iochpe-Maxion’s products is directly influenced by global automotive industry cycles, with no ability for the company to generate its own demand, which makes it dependent on automakers’ production volumes.

In regulatory terms, Iochpe-Maxion’s business sector and that of its subsidiaries is not subject to specific regulatory agencies in Brazil or abroad, but it is subject to the general legislation applicable to industry, especially in labor, environmental and industrial safety matters. The company needs licenses and authorizations from environmental agencies and other public authorities, both in Brazil and in the other countries where it operates, for installation, operations, use of water resources, waste management and handling of controlled chemical products. The industrial units follow Brazil’s National Environmental Policy and analogous local regulations, with prior environmental licensing for potentially polluting activities, as well as specific requirements for permanent preservation areas, industrial waste management, water abstraction and effluent treatment.

In the environmental, social and governance field, Iochpe-Maxion publishes an annual sustainability report, based on international standards such as GRI and SASB, also considering TCFD recommendations regarding climate change. The most recent report includes an inventory of greenhouse gas emissions for scopes 1 and 2, assured by an independent entity, and the company plans to extend this assurance to scope 3. All production units are ISO 14001 certified and undergo periodic environmental audits. The company has recently updated its materiality matrix to incorporate the concept of double materiality and aligns its sustainability strategy with several UN Sustainable Development Goals, focusing on topics such as product quality and innovation, human capital, decarbonization and circular economy, value chain development and corporate governance. MYPK3 shares, traded on B3, reflect this set of globalized industrial operations, exposure to the automotive cycle and commitment to formal ESG disclosure practices.