[Report] All gun barrels produced at Changwon Plant… “2030 goal: Top 5 in aerospace special steel”
Securing superalloy technology, establishing SST in the US, increasing facility investment
On October 20, a visit to SeAH Changwon Special Steel’s (032430) special steel plant in Changwon, Gyeongnam, revealed a scene filled with steam as the interaction of fire and water took place.
The special steel team leader, Oh Sang-hoon, explained that the steel pillars are gun barrels mounted on K2 tanks and K9 self-propelled guns. He elaborated that heat treatment is done on the barrels to meet the physical properties required by defense companies.
To withstand intense pressure and heat from missile and shell launches, gun-barrel materials require high strength and heat resistance. The SeAH Changwon plant, which produces such special alloy steels, along with general steelmaking, casting, forging, and rolling facilities, undergoes rigorous processes to achieve these physical properties.
The vertical continuous casting machine within the nearby casting plant is also part of a similar process. Continuous casting is part of the steelmaking process where molten steel is solidified to create semi-finished products. SeAH Changwon Special Steel uniquely possesses a 12-meter vertical casting machine in Korea.
Unlike typical casting machines where molten steel flows along a gentle incline, the vertical casting machine allows the molten steel to flow in the same direction as gravity, resulting in more uniform solidification and minimizing uneven stress in the semi-finished products. Technical research director Chae Min-seon noted, “No other company has a 12-meter vertical casting machine, so we produce 100% of gun barrels domestically.”
SeAH Changwon Special Steel aims to expand its influence in the defense and aerospace materials industry based on its owned special alloy technology. The company plans to convert its current portfolio, focusing on stainless steel and tool steel production for traditional industries like plant, shipbuilding, and heavy equipment, to center on high-value-added industries.
Specifically, the company aims to increase the aerospace and defense special alloy sector, which currently accounts for only 3% of total sales, to about 20% by 2030. The goal is to rank among the top 5 global aerospace special steel makers by 2030.
Interest is particularly high in the aerospace sector due to its high potential for growth and high value-added materials. According to the Korea Aerospace Industries Association, the material market for aircraft manufacturing is expected to grow by approximately 132%, from 44 trillion won in 2022 to 102 trillion won in 2032.
The traditionally high entry barriers of the aerospace sector have recently decreased, providing an ideal opportunity to expand influence. The aerospace ecosystem typically features Original Equipment Manufacturers (OEMs) like Boeing and Airbus at the top, followed by Tier 1-3 suppliers and material companies, requiring companies like SeAH Changwon Special Steel to meet all requirements from OEMs and tiered suppliers.
However, with the global aerospace supply chain restructuring around allies and friendly nations, new opportunities have emerged. Technical director Min-seok mentioned, “The aerospace market had been impenetrable due to stringent certifications and approvals and the practice of long-term contracts (LTA) for stable supply. Recent geopolitical events like the Russia-Ukraine war, the US-China rivalry, and the Israel conflict have presented opportunities for us.”
SeAH Changwon Special Steel has aspirations to contribute to the domestic aerospace ecosystem by localizing special alloy materials. Chae highlighted the issue of relying on foreign companies like Carpenter despite the KF-21 fighter jet being manufactured in Korea, emphasizing the need for localization.
Through R&D, the company aims to secure special alloys suitable for aerospace applications and is actively pursuing various certifications and approvals to prepare for market entry. The R&D investment has increased by 77%, from 18.4 billion won in 2022 to 32.6 billion won in 2024.
As a result, the company has secured domestic technology for a superalloy capable of maintaining durability and heat resistance at 1,650°C this year. Superalloys, primarily made from nickel and cobalt, are essential materials for aerospace engines and power generation turbines that operate under extreme temperatures and pressures. In August, they supplied a 900°C-grade superalloy prototype to Hanwha Aerospace for initial performance evaluation. They are also supplying domestically developed wingspar materials, which are key components for aircraft wings, to Korea Aerospace Industries (KAI).
SeAH Changwon Special Steel has acquired the necessary global standard certifications to enter the aerospace supply chain. The company obtained AS9100, an aerospace quality management system certification, in 2021, and in 2023, acquired NADCAP, an international aerospace and defense contractor approval program for special processes.
They are also hastening to obtain certification from customers, such as aerospace OEMs. The process of registering as a certified supplier (QPL) with Boeing will begin in 2024. Additionally, they have embarked on acquiring LCS certification from engine manufacturer Pratt & Whitney (P&W) this year.
Moreover, they plan to complete a reorganization of their quality management system by the end of the year. The aerospace industry requires comprehensive documentation for managing the entire lifecycle of materials, from raw materials to the final components, to thoroughly identify causes in the event of accidents or issues. SeAH attaches QR codes to their special alloy materials supplied to end-users, enabling verification of lifecycle information.
SeAH’s active investment in new production facilities includes the ongoing construction of a special alloy production subsidiary, SeAH Super Alloy Technology (SST), in Texas, USA, with an investment of 213 billion won, slated for completion next June.
Once completed, this plant will play a role in securing self-sufficiency meeting global standards in North America, the largest aerospace industry hub, and exploring new demand sources. It will also help alleviate tariff risks posed by the Trump administration’s 15% reciprocal tariffs.
SeAH Changwon Special Steel plans to invest over 400 billion won in additional production facilities at the Changwon plant and SST over the next three years.
At the Changwon plant, a 2,200-ton forging press will be replaced by a 5,000-ton one by the end of 2027, aiming to establish a diverse portfolio alongside existing 9,000-ton and 2,800-ton facilities. The expansion of titanium production facilities will also be completed by the first half of 2027.
Director Chae urged the need to prepare promptly for the opportunities emerging in the era of private space exploration to lead the aerospace industry. He emphasized, “In the era of private space, we can create and develop our own standards and certifications instead of adhering to foreign company standards and approvals, which is essential for building a sustainable ecosystem.”