SeAH Aero & Defense Materials, a subsidiary of SeAH Besteel Holdings (001430.KS), announced Wednesday that it has signed a long-term agreement (LTA) with Boeing, the world's largest aircraft manufacturer, to supply high-strength aluminum alloy materials.
Under the contract, SeAH Aero & Defense Materials will supply high-strength aluminum alloy materials for aircraft fuselages and wings to Boeing starting next year. The agreement follows a direct supply contract signed with Boeing last year.
"Our proven quality, on-time delivery capability, and supply stability during the previous contract period led to this long-term strategic partnership," a company official said.
High-strength aluminum alloys used in aircraft structural components, which are directly linked to safety, require high precision and consistent quality stability. This necessitates lifecycle management and data transparency from raw material receipt through extrusion, heat treatment, processing, and inspection. SeAH Aero & Defense Materials has demonstrated its competitiveness in the global aviation materials market by meeting Boeing's stringent standards based on world-class traceability and quality control capabilities for aluminum alloy materials.
The long-term supply agreement is also significant as it secures advance production volume for SeAH Aero & Defense Materials' new 2,300-ton aluminum materials plant under construction in Changnyeong County, South Gyeongsang Province. The new facility is scheduled to begin full operations in 2027, and securing stable volume from the start will enable early stabilization of equipment operations and improved cost competitiveness. The company also expects to establish a flexible response system to meet structurally growing global demand for aviation materials.
SeAH Aero & Defense Materials' strategy to restructure its portfolio toward high-value-added materials centered on aerospace and defense is producing tangible business results. In addition to Boeing, the company supplies materials to global aircraft manufacturers including Airbus Defence and Space, China's COMAC, Brazil's Embraer, and Canada's Bombardier. The company achieved record performance with cumulative revenue of 98.9 billion won, operating profit of 20.3 billion won, and an operating profit margin of 20.6% through the third quarter of this year.
"This long-term contract with Boeing is an important milestone proving that SeAH Aero & Defense Materials has entered a sustainable growth trajectory as a key player in the global aviation materials market," a SeAH Besteel Holdings official said. "We will further solidify our cooperative foundation with global aircraft manufacturers, continuously expand our materials supply scope, and accelerate entry into new platforms and portfolio expansion."
