Grupo Aço Cearense reaches 37 years in the market with a family succession project - Group Aço Cearense

Grupo Aço Cearense reaches 37 years in the market with a family succession project

Friday October 14th, 2016

Prospering in a consolidated manner in the market is one of the great challenges for companies, especially for family businesses, which often run into difficulties such as the succession and professionalization process.

Family business mortality

Brazil has between 6 and 8 million companies, 90% of which are family-owned, but the early mortality rates of these ventures are still very high. To give you an idea, of every 100 Brazilian family businesses, 30% arrive in the second generation and only 5% in the third. The numbers show that many cannot survive this passage or get there with great difficulty.

Ceará Steel Group

In this regard, Grupo Aço Cearense, about to turn 37 on October 15th, is preparing to experience its succession process with great care and responsibility, seeking to maintain the space it has conquered in the market year after year.

To this end, it entered into a partnership with the consulting firms Oxbridge and PricewaterhouseCoopers (PwC), companies known nationally and internationally for helping large companies to consistently take advantage of the virtuous cycle of the economy.

Founded by Vilmar Ferreira, born in Ceará, Ceara, the company was initially “FERRO OK”, intended to sell steel for civil construction and derivatives. With the expansion of business, in 1984, it became Aço Cearense.

Based on the practice of serving all customers and their different needs, regardless of volume or operation, the company has associated its brand with the concept of good business, expanding its range of operations and, consequently, its customer base.

Today, the Ceará group has five companies – Aço Cearense Comercial, Aço Cearense Industrial, SINOBRAS, SINOBRAS Florestal and Instituto Aço Cearense – in Ceará, Pará and Tocantins, and 22 thousand active customers across the country.

In 2015, the Aço Cearense Group had revenues of R$ 2.5 billion and, in 2016, even with the delicate moment of the economy that the country is going through, the revenue forecast is R$ 2.0 billion, with a production capacity of 1,000 .000 t/year.

Family Office Project

Through the partnership with Oxbridge and PwC, Grupo Aço Cearense intends to ensure a healthy and sustainable growth of the business in the medium and long term. For this reason, the Family Office Project has been implemented in the company, which addresses family, corporate and corporate governance in the company and will help educate the children of the family to understand the value of the business.

The implantation will take about a year and is led by one of Vilmar’s sons, Wander Ferreira. Aline Ferreira, also the daughter of the Group’s founder, is on the way to running the business. After going through several sectors and positions in the company, Aline currently holds the position of Commercial and Financial Vice President of Grupo Aço Cearense.

To go through the delicate economic period that the country is facing, with a coherent posture, readjusting projects and investments, Grupo Aço Cearense is preparing to resume growth in the coming years.

Currently, the company’s biggest project is SINOBRAS Phase II, by SINOBRAS, a steel mill located in Pará, which will more than double its production capacity, with an investment of US$ 200 million, generating, among other benefits, growth and development for the state of Pará and the entire region, as well as new direct and indirect jobs.