SeAH Changwon Specialty Steel Accelerates Entry into Aerospace and Defense Special Alloy Market

SeAH Changwon Specialty Steel is accelerating its efforts to penetrate the aerospace and defense special alloy materials market. By leveraging the global supply chain restructuring and the advent of the private space era as opportunities in a field where technological prowess and quality reliability are key competitive factors, the company aims to gradually increase its production share. It has set a goal to become one of the global top five manufacturers of aerospace special steel by 2030.

Chae Minseok, Head of the Technology Research Center at SeAH Changwon Specialty Steel, stated during a presentation held at the company's headquarters in Changwon, South Gyeongsang Province, on October 20, "The aerospace special alloy market is characterized by high entry barriers, long lead times, and a monopolistic structure centered on a few suppliers. However, as supply chain restructuring accelerates due to recent geopolitical risks, opportunities are opening up for domestic companies." The company is currently implementing a phased roadmap for entering the aerospace and defense special alloy market. With a focus on securing technology, obtaining quality certifications, and entering the global supply chain, SeAH Changwon Specialty Steel aims to raise the share of related business revenue from the current 3% to 20% within the next three years.

Exterior view of SeAH Changwon Specialty Steel. Provided by SeAH Holdings

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SeAH Changwon Specialty Steel continues to expand its investment in research and development (R&D), focusing on securing core technologies such as superalloys with ultra-high heat resistance. The R&D investment increased by 77%, from 18.4 billion won in 2022 to 32.6 billion won this year. Through these investments, the company has already secured superalloy technology capable of maintaining metal strength and heat resistance at 1,650 degrees Celsius, preparing for applications in aerospace engines and power generation gas turbines. In addition, the company is advancing its technology for manufacturing master alloys for single-crystal precision casting to enhance its competitiveness in next-generation engine materials.

Facility expansion is also underway. SeAH Changwon Specialty Steel has introduced new aerospace heat treatment furnaces and non-contact ultrasonic inspection equipment (Immersion UT), and plans to replace its 2,200-ton forging facility with a 5,000-ton facility by 2027. The company is also expanding its titanium production facilities, planning to invest over 400 billion won in the Changwon plant and the U.S.-based SST (SeAH Super Alloy Technologies) over the next three years. Chae explained, "These investments in production facilities are not just about expanding capacity, but about enhancing process reliability. All facilities are being established to meet global certification requirements."

International certifications to ensure quality and trust are also being obtained. SeAH Changwon Specialty Steel acquired the AS9100 aerospace quality management system certification in 2021 and the Nadcap (for heat treatment and non-destructive testing) special process certification in 2023. In August of this year, the company supplied prototype superalloys rated for 900 degrees Celsius to clients, completed performance evaluations, and is currently undergoing the process to be registered as a qualified supplier (QPL) for Boeing. Next year, the company plans to pursue certification from Pratt & Whitney (P&W). Chae stated, "Our goal is to complete the QMS reset by next year and receive approval from major OEMs and engine manufacturers by 2028. We will elevate our certification system to international standards and prove the reliability of domestically produced aerospace materials."

On the technology front, SeAH Changwon Specialty Steel is collaborating with Hanwha Aerospace and Korea Aerospace Industries (KAI) to develop advanced nickel and titanium alloys. The company has completed the initial delivery of Waspaloy, a superalloy for engines, to Hanwha Aerospace, and has succeeded in localizing aluminum forgings for the wing spar of the Israel IAI G280 aircraft in cooperation with KAI. Additionally, in collaboration with domestic and international research institutes, the company is working on localizing various aerospace alloys, including cobalt-nickel alloys for rocket engine nozzles, 718 alloys for high-strength fasteners, and precipitation-hardened stainless steel for propellant rudders.

Chae emphasized, "We are proving that domestic companies can achieve world-class quality in a short period through collaboration. Localizing materials is not just about securing technology but also about fostering the industrial ecosystem." He added, "To increase material self-sufficiency across all areas, from space launch vehicles to engines and structural components, a robust R&D network is essential. In an era of supply chain uncertainty, internalizing materials is key to national competitiveness."

The company is also ramping up its global market strategy. In March, SeAH Changwon Specialty Steel began construction of a special alloy production subsidiary, SeAH Super Alloy Technologies (SST), in Temple, Texas, aiming for completion in June next year. SST will produce cast stick master alloys for aerospace and metal powders for 3D printing, with an annual production capacity of 6,000 tons. Chae stated, "SST is not just a production base but a bridge connecting SeAH's technology with the U.S. market. We will establish a system to immediately respond to the needs of North American customers on-site."

Through this investment, SeAH Changwon Specialty Steel aims to enter major supply chains in the U.S. market, which accounts for 35-40% of global special alloy demand, and to simultaneously achieve cost competitiveness and carbon reduction by recycling local scrap. Notably, SST serves as a core hub in SeAH Group's three-phase global strategy of localization, high value-added, and low carbon. It will shift the existing business structure, which focused on exporting finished products, to a local procurement, processing, and supply system. The company plans to expand direct transactions with North American aerospace and defense clients through SST and establish a stable revenue structure based on long-term supply contracts.

SeAH Changwon Specialty Steel is also strengthening synergies with its affiliates within SeAH Group. The company is jointly developing high-strength alloy products for aerospace and defense, such as aircraft structural components, shafts, and missile combustion tubes, in collaboration with SeAH Aerospace & Defense Materials. By leveraging SeAH Aerospace & Defense Materials' network, which holds numerous aircraft manufacturer certifications, the company plans to expand its global customer base. Chae stated, "Technological collaboration within the group is SeAH's greatest asset. When Changwon, the U.S., affiliates, and research centers operate as a single team, we can become a true global player."

SeAH Changwon Specialty Steel expects that the localization of special alloys will also contribute to strengthening the competitiveness of the domestic aerospace and defense parts ecosystem. Chae said, "Based on our special alloy technology and quality management capabilities, we are simultaneously pursuing localization of aerospace materials and entry into the global market. In the era of private space exploration, rather than adhering to foreign standards, we must establish our own certification system to lead the industrial ecosystem."

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