MULTIENERGY SCENARIO: THE REINVENTION OF A TRADITIONAL IRON CASTING COMPANY

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Abstract:

MULTIENERGY SCENARIO: THE REINVENTION OF A TRADITIONAL IRON CASTING COMPANY

André Ferrarese – Director of Innovation, Technology and New Businesses, Tupy SA

Mario Sergio Salerno – Senior Full Professor, University of São Paulo (USP), Polytechnic School, Department of Production Engineering

Paper proposal

The reorganization of the global automotive industry 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 iron casting 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, in an action research approach. 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 was achieved not by abandoning legacy competencies but by embedding them into diversified portfolios aligned with multienergy futures. To a certain degree, taking advantage of path dependency.

Practical and Theoretical Implications

Practically, the case reinforces the importance of scenario evaluation as a strategic tool. Companies must avoid being misled by futures artificially constructed by weak legislation or temporary incentives. A diversified portfolio across different time horizons provides insurance against volatility and policy uncertainty. Theoretically, the paper contributes to discussions on industrial transformation, showing how mature firms in traditional sectors can innovate and adapt without losing their core identity. It highlights the role of organizational learning, strategic foresight, and cross-sectoral diversification in sustaining competitiveness during technological transitions.

Conclusion

The reinvention of Tupy illustrates that the automotive transition is not a binary shift from combustion to electrification, but a complex reorganization of energy systems, industrial capabilities, and global competitiveness. By embracing scenario-based strategy and investing in diversified technological routes, traditional companies can remain central actors in shaping the future of mobility. This paper argues that resilience in the automotive industry may depend less on abandoning legacy technologies and more on reimagining them within broader multienergy environments.