This article was published on May 15, 2026, at 13:44 on Signal, the capital markets compass.
"Our goal is to diversify our product lineup by acquiring fellow aluminum die-casting companies through M&A. We also plan to consider acquiring defense or robotics manufacturing firms if suitable targets emerge."
Lee Sung-wook, CEO of SeAH Mechanics, said in an interview with Seoul Economic Daily on Thursday, "Without continuously pursuing M&A, we cannot survive in a rapidly changing market." He added, "Securing future growth requires business expansion, and the fastest way to expand our business areas is through M&A."
Founded in 1999, SeAH Mechanics specializes in aluminum casting. In 2020, mid-sized manufacturer HPK acquired the company through a consortium with private equity firm Keystone Partners. Following its initial public offering (IPO) in 2022, financial investor Keystone Partners sold its stake, and strategic investor HPK now holds the position of single largest shareholder. CEO Lee, an M&A specialist who previously worked at Daishin Securities and KB Securities, joined HPK's future strategy office before taking the helm at SeAH Mechanics in 2024.
SeAH Mechanics' core products have recently diversified from display components to electric vehicle (EV) and energy storage system (ESS) components. Of last year's revenue of 85.8 billion won, roughly half — 44.3 billion won — came from its new ESS and EV businesses, with results becoming increasingly visible. The company's main customer is LG Energy Solution. "Amid intensifying competition in the EV market, there was a consensus that we needed to find a breakthrough through ESS," Lee explained. "Because we proactively began research and development (R&D), we were able to gain a first-mover advantage in this newly forming market."
For M&A targets to expand the business, the company plans to prioritize fellow aluminum casting firms. The reasoning is that since SeAH Mechanics has already accumulated casting techniques and know-how, post-acquisition integration would be smoother, and economies of scale could be realized in procurement, manufacturing and sales. In addition, for more substantial business advancement, the company is also pursuing acquisitions in other sectors, such as defense and robotics component firms. The goal is to find new growth drivers by expanding its casting-centered business into related areas such as components.
"Our goal for the current core aluminum casting business is to build a manufacturing platform that produces small, medium and large products through M&A," Lee said. "We will also pursue acquisitions of advanced industry component firms to expand our manufacturing value chain."
