SeAH Targeting Global Market as a Breakthrough for COVID-19 Crisis

[Asia Economy Reporter Hwang Yoon-joo] SeAH Group is expanding its overseas exports. The strategy is to strengthen overseas sales further after the COVID-19 pandemic and diversify sales that have been concentrated in the domestic automobile industry.

According to the industry on the 10th, SeAH Besteel's export ratio increased to 22% as of the third quarter of last year. Compared to the past when it remained in the 10% range, this is about double the size.

SeAH Besteel is a company that produces automotive special steel and maintained a monopoly position domestically until Hyundai Steel entered the market. As market competition intensified, since 2016, it has reduced the proportion of automotive special steel and diversified its product lineup. With the business shrinking due to the COVID-19 shock, it is accelerating overseas sales.

SeAH Besteel established its North American sales and marketing corporation (SGI) in 2016, its Thailand corporation (SGT) in 2018, and newly established a production corporation in Vietnam at the end of last year. Construction of a production plant in Vietnam is also underway, aiming for mass production in January 2022. Once completed, the plant will produce 15,000 tons per year of seamless tubes for bearings. An industry insider explained, "Global bearing companies are gathered in the Southeast Asian market, so establishing a production plant in Vietnam can create synergy in terms of diversifying the global network."

As part of this, the existing 'Global Marketing Headquarters' was renamed the 'Global Sales Headquarters.' Under the Global Sales Headquarters, the organization was subdivided into Global Sales Team 1 and Global Sales Team 2 to specialize the sales organization.

SeAH Steel, which focuses on steel pipes, is also accelerating the development of overseas markets. Demand for steel pipes is increasing mainly overseas due to the rise in renewable energy demand. Offshore wind power projects are representative. SeAH Steel has won 10 offshore wind power projects over the past four years (2017?2020), setting the record for the most overseas orders among domestic companies.

To strengthen overseas sales of the offshore wind power business, the Offshore Structure (OF) Marketing Team was newly established under the Special Pipe (SP) Business Headquarters. The existing Export Team 3, which handled offshore wind power tasks, was abolished, and the OF Marketing Team is now fully responsible for marketing and sales related to offshore wind power.

A SeAH Steel Holdings official said, "We are making efforts to find new demand after COVID-19," adding, "This year, the goal is to increase the global proportion and normalize sales to pre-COVID-19 levels."