SeAH Besteel Holdings to Invest 213 Billion KRW in Special Alloy Production Plant in the US

Yeonsan 6000t Scale... Target Completion in 2026
"Actively Responding to New Demands in Aviation and Aerospace"

SeAH Besteel Holdings and SeAH Changwon Special Steel will invest 213 billion KRW to build a special alloy production plant in the United States with an annual capacity of 6,000 tons. By establishing a local special alloy base in the U.S., they plan to actively respond not only to power generation and plants but also to new demands in aerospace, space, and petrochemicals.

SeAH Besteel Holdings announced on the 16th that it will establish a U.S. investment corporation, 'SeAH Global Holdings, Inc,' and a special alloy production corporation, 'SeAH Superalloy Technologies, LLC,' to enter the local special alloy market in the United States.

The target completion date for SeAH Superalloy Technologies is 2026. Currently, they are reviewing the site for the special alloy production plant, considering equipment line design and logistics flow, and plan to finalize it soon.

SeAH Besteel Holdings will participate in the paid-in capital increase of the U.S. special alloy production corporation SeAH Superalloy Technologies, investing about 64 billion KRW, while SeAH Changwon Special Steel, the main player in special alloys, will invest approximately 149 billion KRW in redeemable convertible preferred shares (RCPS) of SeAH Superalloy Technologies.

SeAH Changwon Special Steel will oversee the entire project, including the construction and operation of production facilities for SeAH Superalloy Technologies, based on its special alloy production know-how.

Special alloy bars produced by SeAH Changwon Special Steel [Photo provided by SeAH Group]

Special alloys are materials composed of alloys such as nickel, titanium, and cobalt combined with iron, maintaining consistent mechanical properties even under rapid temperature changes and continuous high-temperature exposure. They are high value-added products compared to the carbon alloy steel and stainless steel, which are the existing main steel types of SeAH Besteel Holdings’ subsidiaries.

Market research firm Allied Market Research expects the global special alloy market size to grow from 6.8 billion USD (approximately 9 trillion KRW) in 2021 to 15 billion USD (approximately 20 trillion KRW) by 2031, at an average annual growth rate of 8.5%.

A SeAH Group official said, "Special alloys are a market with high entry barriers requiring advanced technology in the production stage. This investment is significant in that it secures a production base in the United States, the battleground of advanced industries and the largest demand market for special alloys."

He added, "Going forward, SeAH Besteel Holdings plans to intensify its global special steel market strategy centered on production bases in major continents such as Southeast Asia, the Middle East, and North America."