Açotubo grows apace and foresees earning US$ 588 million in 2012
Valor Econômico
Nothing in Açotubo currently resembles its origins: a supplier of iron and steel scrap to steel industries. Under the management of the current partners, a branch of the Italian Bassi family that came to Brazil in the late 19th century, it was founded in 1973, in Guarulhos, in Metropolitan region of São Paulo. Since then, with the improvement of its operations, it grew nonstop and became the largest distributor of pipes in the country. For 2012, it foresees exceeding the mark of R$ 1 billion (US$ 588.2 million) in earnings. That means doubling in size compared to two years ago.
The focus of operation of the Bassi family, represented by three shareholding brothers, is a wide range of activities: from the market for works related to the oil and gas sector, in which there are major clients like Petrobras and its providers of services, going through the sectors of agriculture, machinery and equipment, chemical and petrochemical and energy until the industries of automobiles and parts for motorcycles. And that is not all. To diversify the businesses, three years ago the Bassi family made its first big acquisition, it bought Artex, a company established in Rio de Janeiro with expertise on the market of stainless steel. With that, it started catering to food and beverage industries, hospital chains and the civil construction market. Altogether, it was invested R$ 55 million (US$ 32.4 million), including the transfer of assets to São Paulo and the modernization of facilities. For the first time they used a credit line of the BNDES (National Development Bank) that guaranteed 30% of the total resources.
The philosophy of Açotubo, which operates with virtually 100% of national tubes, is to grow with small operations and each step is taken after a lot of study, says Luiz Eugênio, Operational Chief Officer. The company currently has a portfolio with 15 thousand to 18 thousand active clients, which place orders ranging from 30 kilograms to 30 tons. One of its most recent orders was placed by the Jirau hydroelectric power plant, on the Madeira River (RO): it was a batch of 450 tons. To meet the demand of the interior of São Paulo, which grows in agricultural machines and in other industrial sectors, it recently opened the sixth branch of the group, in Sertãozinho. Also last year, it entered into a partnership with Gerdau Aços Especiais to sell special steel to large auto parts manufacturers.
At its large premises in the neighborhood of Cumbica, Açotubo does not sell only pipes. In its line of machines it performs the laser cut and the finishing of the material it receives from Vallourec and ConfabTenaris, services that add value to their operations. Incotep is specialized in the drawn products used to manufacture auto parts and motorcycle parts. For Artex, which was facing problems, but has a strong brand, the new owners already foresee doubling its market share, currently at 8%. It is only behind Amorim, of Aperam (former ArcelorMittal Inox).
The expansion of the economy in the country already puts the Bassi on alert. With capacity to operate 11 thousand tons a month and with sales already over 8 thousand they will soon have to consider further improvements in the facilities. Nearly 70% of the earnings of the group, which is projected at nearly R$ 900 million (US$ 529.4 million) for 2011, comes from Açotubo. It will represent growth of 27% compared to 2009, repeating the performance achieved in the prior year. The rest is equally divided between Incotep and Artex. "We always grow above the rate of the GDP", say the brothers who are proud of not having a bank debt. "Should the country continue growing at annual rate of 5% there may be a shortage of steel and other materials", they say.
Nearly 70% of the earnings of the group, which is projected at nearly R$ 900 million for 2011, comes from Açotubo. It will represent growth of 27% compared to 2009, repeating the performance achieved in the prior year. The rest is equally divided between Incotep and Artex. "We always grow above the rate of the GDP", say the brothers who are proud of not having a bank debt. "Should the country continue growing at annual rate of 5% there may be a shortage of steel and other materials", they say.