Korea's SeAh poised to supply satellite parts to SpaceX

SeAh Changwon Integrated Special Steel Co. is in negotiations with SpaceX to supply steel used for rockets and satellites to become South Korea's first parts manufacturer for the US spacecraft company, according to people familiar with the matter on Sunday.

Both sides are now working on details about their contract size and period, as well as other conditions, to sign a deal within the year.

SeAh will likely supply alloy steel composed of nickel, chrome, and titanium for a period of three to five years, according to the sources.

They will be equipped in engines of rockets and satellites such as StarLink satellites.

SpaceX, founded in 2002 by tech billionaire Elon Musk, is working on the Starlink project to offer satellite internet access worldwide, under which it hopes to deploy 42,000 satellites.

It is also understood to tap other Korean parts suppliers to buy parts and components for spacecraft and rockets.

SeAh Changwon is wholly owned by SeAh Besteel Holdings Corp. It produces small quantities of various types of steel, including carbon alloy steel with high carbon content.

Its special steel is alloyed with nickel, chrome and titanium to improve its mechanical properties. It is deemed suitable for spacecraft and satellites because of its resistance to high temperatures of over 650 Celsius degrees and corrosion.

The news sent the shares of SeAh Besteel highly by its daily limit of 30% to 23,850 won ($18) on Monday, compared to the flat Kosdaq market.

The company also has been developing aluminum and titanium alloys in cooperation with Korea Aerospace Industries Ltd. (KAI) since last year. 

It plans to develop 900 types of aerospace parts by 2030, which KAI has imported.

In 2022, SeAh posted an operating profit of 116.1 billion won ($88 million) on sales of 1.8 trillion won.

Other suppliers to SpaceX include Japan’s Toray and California Metal & Supply.

The spacecraft manufacturer in 2016 agreed to source carbon fibers from Toray, the world’s largest carbon fiber producer, in a deal worth $2 billion.

California Metal & Supply was acquired by South Korea-based Kencoa Aerospace Corp. in 2016.

(Updated with SeAh's share price and other suppliers for SpaceX)

Write to Ik-Hwan Kim and Hyung-Kyu Kim at lovepen@hankyung.com
Yeonhee Kim edited this article