Brazilian longs steel distributor Açotubo Group plans to invest BRL100mn ($17.7mn) in 2021-2023. In 2020, the company invested the last of its previous three-year BRL100mn commitment.
According to executive and corporate manager Bruno Bassi, the investments will help the company adapt to new market opportunities including industrial works, infrastructure projects, and the oil and gas sectors. Large growth is expected in energy infrastructure projects. The company has products that help support and anchor the transmission line towers.
Açotubo sold about 105,000mt of steel in 2020, up 20.7pc from 87,000mt in 2019. In 2020, the average client portfolio was 60,000 customers serviced monthly.
Revenues at Açotubo are estimated at BRL1bn in 2021. The 2020 revenues are expected at BRL900mn, up from the BRL800mn in 2019 and BRL760mn in 2018. Despite the COVID-19 pandemic, each year has resulted in progressively stronger revenue growth, Bassi said. Most of the gains in 2020 were achieved in H2 2020 with a rebound in fulfillments at centers, resurgence in activities, and higher prices.
The company’s main suppliers are Aperam, Gerdau, Tenaris, and Vallourec as it sources solid bars, tubes, connections, and stainless steel. Açotubo also operates anchoring services to support buildings.