NAVIGATING THE MULTIENERGY SCENARIO: THE REINVENTION OF A TRADITIONAL IRON CASTING COMPANY

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Extended abstract

Paper proposal. The reorganization of the global automotive market has been redefining organizational models and competitive strategies, particularly for autoparts suppliers. While combustion engines have often been declared obsolete, a more nuanced understanding is emerging in the context of decarbonization, the central challenge is not the engine itself but the fuel that powers it. This distinction opens new technological and strategic pathways for companies traditionally embedded in the internal combustion value chain. Tupy, a Brazilian multinational company, the world’s largest cast iron company with nearly 90 years of history, provides a compelling case study of how a mature industrial player can reinvent itself to remain competitive in a multienergy future. This paper investigates how scenario analysis informs strategic choices, and how technological alternatives can be positioned to strengthen resilience and competitiveness.

Research Question and Purpose. The central question guiding this research is: How can a traditional autoparts company reinvent itself to thrive in a multienergy automotive landscape? The purpose is to explore the role of scenario evaluation in shaping strategic diversification, and to analyze how companies can leverage their legacy capabilities while building new competencies in sustainable technologies. By focusing on Tupy, the study contributes to broader debates on industrial adaptation, resilience, and the reconfiguration of global value chains in the automotive sector.

Methodology and Design. The paper adopts a scenario-based analytical framework. Multiple energy transition scenarios are constructed, considering regulatory trajectories, technological innovations, and competitive dynamics across regions. The analysis draws on secondary data (industry reports, policy documents, academic literature) and primary insights from company projects and partnerships. Comparative benchmarking with other autoparts and materials companies is used to highlight distinctive strategic choices. The methodology emphasizes the interplay between technological feasibility, legislative environments, and market distortions created by uneven global competitiveness.

Findings The study identifies several strategic movements undertaken by Tupy that illustrate how a traditional company can reposition itself:
• Mergers and Acquisitions (M&As) to expand capabilities beyond casting, enabling machining and assembly of complete engines.
• Partnerships and innovation projects focused on sustainable fuels, including biofuels, hydrogen, and synthetic alternatives.
• Diversification into adjacent industries, such as developing energy and fertilizer solutions from meat industry waste, which connects industrial processes to circular economy principles.
• Battery recycling initiatives, particularly for lithium-ion technologies, which position the company within critical mineral supply chains and global sustainability agendas.
These findings demonstrate that resilience is achieved not by abandoning legacy competencies but by embedding them into diversified portfolios aligned with multienergy futures.