Grupo Aço Cearense

2025
Sustainability Report

Grupo Aço Cearense

Grupo Aço Cearense is a privately held group of companies with integrated operations in steel sales, metalworking, steelmaking, forestry focused on producing bioreductants for its own use, and steel product logistics.

Grupo Aço Cearense comprises SINOBRAS, SINOBRAS Florestal, Aço Cearense, and the Aço Cearense Institute.

Learn about each one:
  • Produces long steel products for the construction industry.
  • It is the largest metal scrap recycler in Brazil’s North and Northeast regions.
  • Produces bioreductants for the SINOBRAS blast furnace.
  • It is the largest reforestation company in the state of Tocantins.
  • Promotes social transformation and inclusion,
  • It helps strengthen communities in the regions where the Group operates.
  • Five facilities combine industrial, commercial, and logistics capabilities.
  • The company produces flat steel and related products for construction and other industries.
  • It is the largest manufacturer of welded steel pipes in South America.

2025 2025 Highlights

Revenue of

BRL 7.2 billion

Production capacity increased to

1.5 million

metric tons per year

GHG emissions inventory awarded the Brazilian GHG Protocol Program’s

GOLD SEAL
A 200%

increase in the production of natural enemies of crop pests, helping reduce pesticide use

Approximately

1.3 million

metric tons of products delivered to more than 20,000 customers

18,000+

suppliers

5,400+

direct jobs and 140,000+ indirect jobs

350,000+

people benefited from projects supported by the Aço Cearense Institute

GREATER EFFICIENCY

in detecting impurities in metal scrap through cameras connected to an AI neural network

Operational Excellence and Production Expansion
Integrated steel production process
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about the investments made at each stage of the production process in 2025.

Innovation

Grupo Aço Cearense updated its innovation structure in 2025, focusing on organizational ambidexterity. This approach combines operational excellence and efficiency with the pursuit of new and disruptive solutions. Explore the main changes:

  • 1.
    Governance structure for innovation centered on a multidisciplinary Innovation Development Team tasked with identifying and strengthening innovative initiatives developed through the Inovar Program.
  • 2.
    Digital Transformation Program: establishes a consistent methodology for developing solutions. It empowers employees to innovate, strengthening a more integrated digital culture.
  • 3.
    Digital partner: an employee dedicated full-time to digital transformation within their department, with an analytical mindset and a focus on business results.
In 2025, a total of 50 digital initiatives were completed; 68% of them saved more than five hours per month.

Research and Technology
in Operations

SINOBRAS Florestal

Tree Breeding Program: develops clones adapted to the climate conditions of the Cerrado. The company has one patented clone and four others undergoing registration.

Production of natural enemies: supports pest control in planted forests and reduces the use of chemical pesticides. The company’s dedicated laboratory is the largest of its kind in northern Brazil. In 2025, parasitoid production increased by 200%, with more than 40,000 releases to control caterpillars.

Manufacturing and Logistics

High-resolution cameras connected to an AI neural network detect impurities—including soil, plastic, wood, and rubber—as metal scrap purchased by the Group for steel production is unloaded. The operation was integrated with a control tower, enabling detailed, real-time analysis.

Operational Excellence Program

The Operational Excellence Program (OEP) covers all areas of the Group and is led by the Innovation department. In 2025, the program gained momentum through initiatives to optimize workflows and processes.

A total of 45 working groups (WGs) were established to address operational bottlenecks, reduce costs, and increase productivity and competitiveness. The program used Lean Manufacturing, which focuses on identifying and reducing waste while creating customer value, and Kaizen, which promotes continuous improvement.

Logistics

In 2025, Grupo Aço Cearense expanded and modernized its in-house logistics fleet. The purchase of 105 new, state-of-the-art trucks brought the fleet to 312 vehicles. Fleet renewal prioritized vehicles with more fuel-efficient engines and lower emissions.

Socioeconomic Impact

People management

Grupo Aço Cearense continued its comprehensive restructuring of human resources management. In 2025, initiatives focused on integrating organizational culture, strengthening internal communication, increasing employee engagement, and developing talent for succession.

Digital transformation in human resources management also supported this restructuring. Automation tools were implemented for processes including:

Permanent workforce planning
Organizational chart management
Job vacancy management
Training

Engagement and communication

Grupo Aço Cearense’s main internal engagement platform, Acontece+, has strengthened internal communication by connecting employees across the Group. Available through a mobile app, a web portal, and corporate TV, the platform received national recognition at the Best HR awards, where the Group was named the company that best communicates with its employees in the Digital category.

96%

active users

190%

engagement

The Conte com a Gente (Count on Us) Program offers 24-hour psychological support to employees.

Occupational Health
and Safety

People's health, safety, and well-being are strategic priorities for Grupo Aço Cearense. Its Safety Policy formalizes this commitment.

Formal committees comprising employees from various departments monitor risks, propose preventive action plans, conduct inspections, organize the Internal Occupational Accident Prevention Week, and develop measures to prevent psychological and sexual harassment.

Mental Health in Focus

The company surveyed employees to identify and map psychosocial risks. In 2026, the findings informed action plans tailored to each department’s needs. An internal mental health committee was also established, with representatives from Human Resources, Legal, and Industrial Operations.

Inclusion and Accessibility

The company has formal policies to promote inclusion, diversity, and accessibility. Its Code of Ethics and Conduct affirms full adherence to the United Nations (UN) Universal Declaration of Human Rights.

Initiatives such as the Inclusion Program for People with Disabilities put these values into practice.
Women account for 16.4% of the total workforce and hold 45% of senior management positions.

Suppliers and Partners

Grupo Aço Cearense has a diversified supply chain. To prevent and mitigate risks in these relationships, the Group uses formal supplier assessment and approval processes based on technical, legal, and socio-environmental criteria. These processes require ongoing documentary checks of environmental permits and compliance with tax and labor regulations.

In 2025, the Group began developing its Supplier Code of Conduct, which sets out requirements to combat forced labor and general standards for integrity and compliance. The document will be released in 2026.

36.98%
of total procurement volume in 2025 came from local suppliers, defined as those located in the states where Grupo Aço Cearense operates.

Community Development

Since 2010, Grupo Aço Cearense has supported community development through the Aço Cearense Institute, which promotes projects in health, education, social services, sports, culture, entrepreneurship, and the environment. Investments funded through the Group’s own resources and tax incentives support nonprofit civil society organizations in the regions where the Group operates.

BRL 5.6 million+

invested in 2025

40

projects

350,000+

people reached

121

institutions supported

Comunidades

Since 2010

BRL 41 million+

invested

476

organizations supported

1.1 million+

people reached

The Environment

Climate Change

Grupo Aço Cearense seeks to invest in clean technologies and production models that enable steel production with low greenhouse gas (GHG) emissions.

From planted eucalyptus forests to finished steel products, the Group invests in solutions that support lower emissions:

  • SINOBRAS Florestal's planted eucalyptus forests capture carbon from the atmosphere. In 2025, 982,379.20 tCO2e were removed.
  • At SINOBRAS, blast furnace gas is reused in the rolling mill, reducing LPG consumption and associated emissions. In 2025, this renewable energy source supplied approximately 890,000 GJ.
  • Scrap accounts for 70% of the metallic charge in the electric arc furnace, helping reduce emissions from steel production.
SINOBRAS’ GHG emissions intensity per metric ton of steel produced is one-tenth of the national industry average.

Circular Economy

Circular economy practices are part of Grupo Aço Cearense’s day-to-day operations. Its integrated production process enables circular practices at every stage. This supports more efficient management of waste and gases generated during steel production. Using recycled materials also makes the company’s operations more sustainable.

Explore the circularity initiatives at each stage of the process:

SINOBRAS FLORESTAL

Planted eucalyptus provides a renewable source of bioreductants for the blast furnace, reducing demand for other materials used for this purpose.

Industrial Stage

  • Using metal scrap as a raw material for steel production promotes recycling and returns this material to the production cycle, while supporting a value chain involving thousands of people.
  • Co-products from the steelmaking process (blast furnace dust, charcoal fines, blast furnace sludge, and mill scale) are reused in sintering to produce sinter, which is fed back into the production of molten pig iron.
  • Blast furnace gas is reused in the billet reheating furnace at Rolling Mill 1, reducing the need for fossil fuels (LPG).

Biodiversity

The Group’s production facilities are located in three regions rich in biodiversity: the Amazon, the Cerrado, and the Caatinga. Explore the company’s initiatives to support biodiversity in these biomes:

  • Twice-yearly wildlife monitoring at forestry operations. Monitoring identified species classified as Near Threatened and Vulnerable by the International Union for Conservation of Nature (IUCN).
  • Eucalyptus planting in a forest mosaic connects native vegetation fragments across 18,713.02 hectares of Legal Reserve and 1,392.69 hectares of Permanent Preservation Areas (PPAs), forming ecological corridors.
  • Continuous satellite monitoring, structured forest fire prevention and response programs, and annual environmental education campaigns for neighboring communities.
  • Conservation efforts in reclassified PPAs that help protect more than 100 springs feeding major rivers in the Araguaia–Tocantins basin.

Corporate Governance

Governance Structure

Grupo Aço Cearense’s corporate governance structure is organized as follows:

The Board of Directors is the highest governance body and is responsible for setting organizational strategy. Its members are appointed by shareholders at a shareholders’ meeting for three-year terms.

The Executive Management team is responsible for operations. Its broad view of the business enables it to implement the strategies set by the Board of Directors and oversee the Group’s activities.

To support senior management, the company has consolidated the work of three committees: Ethics; Privacy and Information Security; and Tax Law.

Ethics, Integrity, and Compliance

Grupo Aço Cearense conducts its operations and business activities according to principles of integrity and transparency. These principles are formalized in its Code of Ethics and Conduct and its Integrity and Compliance Program.

The Group maintains the Ethics Channel for reporting suspected misconduct, irregularities and violations of company policies or Brazilian law, including potential impacts on human rights and the environment. Reports may be submitted anonymously:

Click here to read our full 2025 Sustainability Report.
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