SeAH Shifts Focus to Aerospace Materials Amid Steel Downturn... 58.8 Billion Won New Plant in Changnyeong

First in Korea to Introduce Rapid Cooling Heat Treatment System
Investing 100 Billion Won by 2034

SeAH Besteel Holdings is accelerating its transition from a steel-focused structure to advanced materials for the aerospace and defense industries. As the global aircraft materials market enters a phase of structural growth, the company is making new investments to proactively respond to demand and secure future growth drivers.

On October 28, SeAH Besteel Holdings announced that its subsidiary, SeAH Aerospace Defense Materials, will establish a new high-strength aluminum materials production plant in Changnyeong County, South Gyeongsang Province, with an annual capacity of 770 tons. The total investment amounts to 58.8 billion won, and the plant is scheduled for completion in the first half of 2027, with commercial production to begin in the second half of the year. The high-strength aluminum materials produced will be supplied to global aircraft manufacturers such as Boeing, Embraer, and Israel Aerospace Industries (IAI).

Various sizes of high-strength aluminum materials from SeAH Aerospace Defense Materials are stacked in the yard. Provided by SeAH Holdings

SeAH Aerospace Defense Materials plans to gradually expand its facilities through 2034, increasing the total investment to approximately 100 billion won. The new plant will feature advanced production lines equipped with state-of-the-art extruders and heat treatment equipment, producing core aluminum materials used in aircraft fuselages and wings. Notably, the company will introduce, for the first time in Korea, a "rapid cooling special heat treatment system" that rapidly cools materials at high temperatures to enhance strength, corrosion resistance, and toughness, thereby strengthening its technological competitiveness.

This investment is a strategic decision to strengthen the business portfolio centered on aerospace and defense materials amid a downturn in the steel market. In the first half of this year, SeAH Aerospace Defense Materials achieved record-high half-year results since its founding, with sales of 66 billion won, operating profit of 13.4 billion won, and an operating margin of 20.3%.

According to the Korea Aerospace Industries Association's "Global Aerospace Materials Market Report," the global aircraft materials market is projected to grow by approximately 132%, from 44 trillion won in 2022 to 102 trillion won in 2032. SeAH Group views this as a next-generation growth market and has taken preemptive steps to invest accordingly.

A representative from SeAH Besteel Holdings stated, "The establishment of this new plant is a decision aimed at securing a leading position in the global aircraft materials market, whose growth potential has been proven," adding, "Based on our accumulated high-strength aluminum materials technology, we will strive to become a key supply chain partner for global aircraft manufacturers."