Metalúrgica Riosulense S.A., currently positioned in the market under the RIO brand, is a publicly traded company with shares listed on B3 under the tickers RSUL3 (common) and RSUL4 (preferred). Founded in April 1946 in the city of Rio do Sul, in the state of Santa Catarina, the company has established its track record as a manufacturer of metal components geared mainly to the automotive sector. Its headquarters are located in the Barra do Trombudo neighborhood in the same municipality, and the company also maintains a branch in São Cristóvão do Sul, in facilities linked to the Penitentiary Fund. Its shares have been listed on the Brazilian stock market since 1988 and, as of 2010, they have been included in category “A”, which groups together issuers whose common and preferred shares are admitted to trading.

Historically, Riosulense has developed capabilities in the casting and machining of special iron and steel alloys, aimed at applications in internal combustion engines and other mechanical systems. In 2014, the company became the first Brazilian foundry to obtain the international certificate of the Transportation and Power Generation program, focused on suppliers to the railway and power generation industries, highlighting its focus on technical and quality requirements to serve manufacturers and operators in these segments. In 2019, the company underwent a rebranding process, adopting the RIO brand, and inaugurated a Prototype Plant with 3D printing technology, reinforcing its capacity for product development and detailing of complex geometries in metal components.

Riosulense’s business model is predominantly based on the manufacture and sale of components for vehicle engines and systems, serving light vehicles, utility vehicles, trucks, agricultural machinery, motorcycles, as well as rail and naval applications. The company operates with two main revenue streams: sales of products manufactured in-house and resale of complementary automotive items. In 2024, the sale of its own products accounted for around 91% of net operating revenue, while resale accounted for approximately 9%, indicating the predominance of industrial activity and metallurgical transformation. This profile positions the company as a relevant supplier both to automakers and to the aftermarket for auto parts, with integrated operations in different links of the automotive chain.

Riosulense’s industrial portfolio covers a set of critical components for engines and support systems, focusing on high dimensional precision and mechanical strength. Among the main products manufactured are valve guides and seats, valve tappets, engine mounts, cylinder liners and steel shoulders, intended for applications in combustion engines, load transmission and structural systems. On the resale front, the company sells a broader line of engine items, including pistons, valves, connecting rods, head bolts, bearings, camshafts, timing kits, rings, reamers and gasket sets, among others. This combination of in-house manufacturing and resale enables the company to offer complete solutions for the repair and maintenance of engines in different types of vehicles.

From a market segment standpoint, Riosulense organizes its activities into five main fronts: aftermarket auto parts, automakers, exports, railway and agricultural. In 2024, the aftermarket accounted for 58.56% of total sales, consolidating itself as the main revenue driver, followed by direct supply to automakers, with 25.33%. Exports accounted for 8.09% of revenue, while the railway and agricultural markets accounted for 3.76% and 4.27%, respectively. One of the company’s main customers is Mercedes-Benz, which accounted for 14.32% of net revenue in 2024 in the automaker segment, demonstrating significant exposure to large global commercial vehicle manufacturers.

Riosulense’s production structure is characterized by intensive metallurgical processes and high-precision machining operations. The company uses melting furnaces, mixers, casting machines, deburring equipment, conventional and CNC lathes, milling machines and machining centers, as well as grinding machines and lines dedicated to different product families. The processes comprise casting, quality testing, cleaning, deburring, diameter adjustment, precision machining, heat treatment and finishing, with quality control at multiple stages. The main raw materials include pig iron, steel and cast iron scrap, special alloys, silicon brass tubes and secondary inputs such as sand, resins, electrodes, oils, abrasives and cutting tools, forming a supply chain typically associated with the foundry and machining industry.

Riosulense’s geographic presence is predominantly domestic, with commercial operations in all Brazilian states, supported by a network of sales representatives and direct sales in some regions, such as Greater São Paulo, Santa Catarina, Rio Grande do Sul, Sergipe and the Triângulo Mineiro. Distribution in the domestic market is carried out mainly by road, while exports use maritime, road and air modes. In 2024, approximately 90.73% of the company’s net revenue originated in Brazil, with the remainder coming from foreign sales. Among the international markets served, notable countries include the United States, Germany, Italy, China, the United Arab Emirates, Paraguay and Turkey, in addition to other destinations in Europe, the Americas, Asia and Africa, totaling exports to more than 25 countries.

In terms of regulation and licensing, Riosulense is subject to municipal, state and federal laws applicable to industrial activities, including safety, environmental and controlled product requirements. To operate, it maintains a business location and operating permit, a sanitary permit for the cafeteria, a fire department inspection certificate, an environmental license issued by the state environmental agency of Santa Catarina and an operating license certificate from the Federal Police for the use of controlled chemicals, in accordance with specific legislation. The company also monitors changes resulting from Brazilian tax reform, assessing the impacts of new tax rules on its operations and internal processes.

On environmental, social and corporate governance matters, Riosulense adopts an environmental management system aligned with ISO 14001, with policies aimed at reducing adverse environmental impacts, preventing pollution, complying with current environmental legislation and properly managing waste and hazardous materials. The company maintains departments dedicated to quality, environment, health and safety, responsible for guiding the storage, treatment and disposal of inputs with contamination risk, as well as for ensuring working conditions for employees. The company has set up an internal ESG committee and hired specialized consultants to develop its first sustainability report, based on the guidelines of the Global Reporting Initiative (GRI) and future adherence to the requirements of IFRS S1 and IFRS S2 standards. Ongoing initiatives include the preparation of a materiality matrix, definition of key ESG performance indicators and an inventory of greenhouse gas emissions, as well as plans for external assurance of sustainability information starting from upcoming disclosure cycles.

Riosulense’s corporate governance includes efforts to protect its brands and intangible assets, with registration and renewal of the “RIOSULENSE” and “RIO” trademarks with the Brazilian National Institute of Industrial Property in different classes, with renewable terms every ten years. The company states that it does not make financial contributions to political parties, candidates or initiatives aimed at directly influencing public policy. In relations with suppliers, it adopts guidelines for ethical, professional and transparent relationships, seeking to approve multiple supply sources to reduce dependence on a few suppliers, although there are still specific items with concentrated supply, a situation the company seeks to mitigate by developing new supply alternatives.

As a share issuer traded on B3, Riosulense combines the profile of a metallurgical industry specialized in components for engines and automotive systems with a relevant presence in the aftermarket and supply to automakers. Its activities in niches such as railway and agricultural, together with its base of industrial customers in Brazil and abroad, position the company as an auto parts manufacturer with a strong emphasis on casting and machining of metal alloys, exposed both to the automotive industry cycle and to the dynamics of investment in transportation and agricultural machinery.