SeAH Aerospace Materials, a subsidiary of SeAH Besteel Holdings, has made an announcement of signing a long-term agreement with Boeing to provide high-strength aluminium alloy materials to the latter, the largest aircraft manufacturer in the world. Under the contract, starting from 2026, SeAH will be supplying Boeing with aluminium alloys that are employed in aircraft fuselages and wings.
Image source: https://www.seahaerospace.com/
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The deal followed a direct agreement between Boeing and SeAH Aerospace last year, which highlighted the quality competitiveness of the latter and its ability to meet the rigorous standards of the aerospace industry, as well as the meticulous certification criteria of Boeing.
Hence, SeAH Aerospace mentioned that “the excellent quality, delivery compliance capabilities, and supply stability proven during the previous trading period have led to a long-term strategic partnership.” Financial terms of the collaboration are yet to be communicated.
SeAH has acquired production volume for the new 2,300-tonne aluminium plant being constructed in Changnyeong County, South Gyeongsang Province, and is expected to launch full-scale operations in 2027. This early volume commitment will enable a fast, efficient and early stabilisation of operations and boost cost competitiveness while catering to flexibility building to address surging global aerospace material demand during its growth phase.
The company has received positive results from its strategy to shift towards high-value-added materials for aerospace and defence, with supplies to Airbus Defence and Space, Boeing, Brazil's Embraer, Canada's Bombardier, and China's COMAC. It has made a record sale of KRW 98.9 billion throughout the third quarter, securing a profit of KRW 20.3 billion, and a 20.6 per cent margin since its foundation.
Elaborating on the partnership, a SeAH Besteel Holdings official stated, “This long-term contract with Boeing is an important milestone proving that SeAH Aerospace Materials has entered a sustained growth trajectory as a key player in the global aerospace materials market. We will further solidify our cooperation foundation with global aircraft manufacturers to continuously expand our material supply scope and accelerate new platform entry and portfolio expansion.”
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