SeAH Besteel Holdings and SeAH Changwon Specialty Steel Invest 213 Billion KRW to Enter U.S. Specialty Steel Market

Pic : Seah Changwon Specialty Steel

SeAH Besteel Holdings and SeAH Changwon Specialty Steel announced on the 16th that they will make a large-scale joint investment to enter the U.S. specialty alloy market.

SeAH Besteel Holdings plans to establish an investment corporation in the U.S., 'SeAH Global Holdings,' and a specialty alloy production corporation, 'SeAH Super Alloy Technology,' and will invest approximately 213 billion KRW over the next two years in collaboration with SeAH Changwon Specialty Steel.

SeAH Besteel Holdings will invest around 64 billion KRW in the capital increase of SeAH Super Alloy Technology. SeAH Changwon Specialty Steel will contribute approximately 149 billion KRW to SeAH Super Alloy Technology’s redeemable convertible preferred stock (RCPS).

SeAH Changwon Specialty Steel will oversee the entire project, including the construction and operation of production facilities for SeAH Super Alloy Technology, leveraging its expertise in specialty alloy production.

SeAH Super Alloy Technology aims to complete construction by 2026 and plans to produce 6,000 tons of specialty alloys annually. The production site will be selected considering logistics routes and other factors.

Specialty alloys, composed of nickel, titanium, cobalt, and iron, can maintain consistent properties under extreme temperature changes and high-temperature environments.

According to market research firm Allied Market Research, the global specialty alloy market is expected to expand to 15 billion USD (approximately 20 trillion KRW) by 2031.

SeAH Besteel Holdings intends to respond to the demand in the specialty alloy sector, including power plants and plants, by establishing a production corporation in North America.

A representative from SeAH Group stated, “The specialty alloy market is known for its high entry barriers due to the advanced technology required in the production process. This investment is significant as it secures a production base in the U.S., where the demand for specialty alloys is the highest and where advanced industries are highly competitive.”