SeAH Besteel Holdings to invest $160 mn to build specialty steel plant in U.S.

[Courtesy of SeAH Besteel Holdings Corp.]

South Korea’s SeAH Besteel Holdings Corp. has announced plans to establish a new subsidiary in the United States and invest about 210 billion won ($160 million) in a new production facility to cater to the growing demand for specialty alloys in North America.

The decision, confirmed during a board meeting on Thursday, involves the creation of SeAH Global Holdings (SGH) as the investment vehicle. Through SGH, SeAH Besteel will establish SeAH Super Alloy Technology (SST), a dedicated entity for the production of specialty alloys, according to industry sources.

This investment is a joint effort between SeAH Besteel Holdings and SeAH Changwon Integrated Special Steel, reflecting their commitment to the advanced materials sector. SeAH Besteel Holdings will contribute 64 billion won to SST through a capital increase, while SeAH Changwon Integrated Special Steel will invest 149 billion won by purchasing redeemable convertible preferred shares (RCPS) issued by SST.

Demand for specialty alloys has been on the rise in the U.S., particularly in sectors such as power generation, plant engineering, aerospace, and petrochemicals. By establishing a local production base, SeAH Group can position itself to rapidly respond to both existing and emerging market needs.

A SeAH Group spokesperson highlighted the strategic importance of this investment, noting that the specialty alloy market is known for its high entry barriers and technical sophistication required during the production stages.

This venture marks SeAH Group‘s first foray into the specialty steel business in the U.S. Historically, SeAH has operated steel pipe production and sales subsidiaries such as SSUSA and SPS in the American market.