The global aviation industry is entering another period of significant expansion. Passenger demand, which rebounded sharply following the pandemic, is projected to maintain strong growth, while the development of next-generation aircraft centered on high-efficiency and eco-friendly fuels continues to accelerate. As the aerospace materials market moves into a phase of structural growth, SeAH is also gaining momentum and preparing to take flight toward a new era of advancement. SeAH Aerospace & Defense, the Group’s dedicated aerospace and defense materials subsidiary, is accelerating its push into the global aerospace market with the construction of a new high-strength aluminum plant.

SeAH Besteel Holdings announced that it will make a strategic investment to strengthen its position in the global aerospace materials market, which is entering a phase of structural growth, and to secure new future growth engines.

The company revealed that its subsidiary, SeAH Aerospace & Defense Materials, will build a new high-strength aluminum plant in Changnyeong, Gyeongnam Province, with an annual production capacity of 770 tons.

The investment for the first phase totals KRW 58.8 billion, and the facility is scheduled for completion in the first half of 2027, with commercial production beginning in the second half of the year.

The company plans to supply high-strength aluminum materials to global aircraft manufacturers such as Boeing, EMBRAER, and Israel Aerospace Industries (IAI).

Further capacity expansion is also planned by 2034, which will increase the total investment to approximately KRW 100 billion. This represents more than a mere expansion of production facilities; it is a strategic declaration that SeAH is formally shifting its future growth engine toward the aerospace and defense materials sector.

The new plant will feature state-of-the-art production lines, including advanced extrusion presses and heat treatment systems. It will produce core aluminum materials for aircraft fuselage and wing structures.

In particular, the company will introduce Korea’s first rapid-quenching heat treatment system, which rapidly cools materials from high temperatures to achieve superior strength, corrosion resistance, and toughness—further reinforcing SeAH’s technological competitiveness in aerospace-grade aluminum. Through this advancement, SeAH Aerospace & Defense is expected to strengthen its technological competitiveness not only in Korea but also in the global market.

This investment goes beyond short-term performance gains and represents a key component of SeAH’s broader strategy to transition its industrial portfolio toward future growth sectors, coming as SeAH Aerospace & Defense continues to accelerate its shift from traditional steel to high-value aerospace and defense materials amid the ongoing stagnation of the global steel market.

In fact, as of the third quarter of this year, the company recorded cumulative sales of KRW 98.9 billion and operating profit of KRW 20.3 billion, marking the highest third-quarter performances since its founding. With an operating margin of 20.6%, the results clearly demonstrate the company’s successful transformation into a high value-added industry.

The global aerospace materials market is expected to experience robust growth. According to the Global Aerospace Materials Market Report (2023) by the Korea Aerospace Industries Association, the market is projected to grow from KRW 44 trillion in 2022 to KRW 102 trillion in 2032, representing an increase of approximately 132%. This indicates that the structural growth trend is already well underway.

A representative from SeAH Besteel Holdings stated, “The establishment of SeAH Aerospace & Defense’s new aluminum plant marks a decisive step to secure leadership in the high value-added aluminum segment within the global aerospace market, whose growth potential has been validated by data,” adding, “Leveraging our proven expertise in high-strength aluminum production, we aim to become a key supply chain partner to global aircraft manufacturers and strengthen our position as Korea’s leading aerospace and defense materials company.”