SeAH Besteel Holdings (CEOs Lee, Taesung and Kim, Suho) and SeAH CSS (CEOs Lee, Sangeun and Lee, Junghoon) will jointly make a large-scale investment to enter the special alloy market in the United States, and will pursue the global market in earnest.

SeAH Besteel Holdings announced on the 16th that it will establish SeAH Global Holdings, Inc, an investment corporation in the US, and SeAH Superalloy Technologies, LLC, a special alloy production corporation, and jointly invest approximately KRW 213 billion with SeAH CSS to build a special alloy production plant in the US over the next two years.

The investment will take the form of SeAH Besteel Holdings participating in the capital increase of SeAH Superalloy Technologies, LLC, a special alloy production company in the U.S., and investing approximately KRW 64 billion, and SeAH CSS, which focuses on special alloys, investing approximately KRW 149 billion in redeemable convertible preference shares (RCPS) of SeAH Superalloy Technologies, LLC. In particular, SeAH CSS will lead the entire project, including the construction and operation of SeAH Superalloy Technologies’ production facilities, based on its know-how in the production of special alloys.

'SeAH Superalloy Technology', which will be SeAH Besteel Holdings' US special alloy production base, is scheduled to be completed in 2026 and will produce 6,000 tonnes of special alloys per year. The site for the special alloys production plant is currently under consideration, with the final site to be decided in the near future, taking into account the design of the facility line and logistics routes.

Special alloys are materials that are composed of alloys such as nickel, titanium, cobalt, and iron that maintain their mechanical properties even in the face of rapid temperature changes and continuous exposure to high temperatures, and are high value-added products compared to SeAH Besteel Holdings' subsidiaries' existing core steel grades of carbon alloy steel and stainless steel.

With the establishment of the North American special alloys production subsidiary, SeAH Besteel Holdings plans to actively respond to not only the major demand markets for special alloys such as power generation and plants, but also to new demands such as aerospace and petrochemicals. In fact, according to market research firm Allied Market Research, the global special alloys market is expected to expand from $6.8 billion in 2021 to $15 billion in 2031, with a compound annual growth rate of 8.5 percent.

An official from SeAH Group said, "Special alloys are a market with a reputation for high barriers to entry, as they require high technical skills in the production stage, and this investment is significant in that we have secured a production base in the United States, which is the center of high-tech industries and has the largest demand for special alloys. Going forward, SeAH Besteel Holdings will continue to focus on production bases in major continents such as Southeast Asia, the Middle East, and North America to target the global special steel market."