MYPK3 Iochpe-Maxion

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 manufacturing 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 markets 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, divesting assets considered non-strategic. 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 started to allocate 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 and strengthening its 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 wide 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 members, cross members, assembled chassis for commercial vehicles, and stamped structural items for light and commercial vehicles. This structure enables the company to serve various categories of global OEMs with products that directly integrate the vehicles’ structural architecture and wheel systems.

From an industrial standpoint, Iochpe-Maxion operates with complex, engineering-intensive production processes. In the structural components area, the process flow involves preparation of steel coil sheets, pickling, cutting, forming in presses, drilling, assembly, pretreatment, painting and anticorrosive finishing. In the manufacturing of steel wheels, the process covers the stages of disc and rim production, with drawing, stamping, rolling, welding, rolling mill operations, expansion, machining and subsequent joining of the parts, finished with E-coat and powder coating. 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 performs 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 17.8 thousand people. In Brazil, its home country, revenue from 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 and others. The company does not use dedicated distribution centers, adopting a model in which shipping is carried out directly from the industrial units to the automakers, predominantly by road transport, including systems such as “milk run,” in which the automakers themselves collect the 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 consulting firms indicate that the company holds significant shares in global production of steel wheels for light and heavy vehicles, as well as a substantial share in side members and chassis in the Americas. In 2024, two large 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 the cycles of the global automotive industry, with no ability for the company to generate its own demand, which makes it dependent on automakers’ production volumes.

In regulatory terms, the sector in which Iochpe-Maxion and its subsidiaries operate is not subject to specific regulatory agencies in Brazil or abroad, but is subject to the general legislation applicable to industry, especially labor, environmental and industrial safety matters. The company requires licenses and authorizations from environmental agencies and other public authorities, both in Brazil and in other countries where it operates, for installation, operation, use of water resources, waste management and handling of controlled chemical products. The industrial units follow the National Environmental Policy and analogous local legislation, with prior environmental licensing for activities potentially causing pollution, as well as specific requirements for permanent preservation areas, industrial waste management, water withdrawal 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 related to 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 are subject to periodic environmental audits. The company 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.