Alcoa signs parts pact

announced today that it has signed a letter of intent (LOI) with Seohan Industries of Korea to form an alliance to produce cast aluminium chassis and suspension components and modules for the automotive industry in

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Under the agreement, Alcoa intends to license its Vacuum Riser-less and Pressure Riser-less Casting (VRC/PRC) technology and sell related production assets.

Seohan will establish an aluminium castings plant in South Korea to supply OEMs in the region with cast structural parts using Alcoa's proprietary technology.

The LOI provides the framework for both companies to identify, develop and launch programs. When operational, the Seohan plant will compliment and expand Alcoa's current VRC/PRC aluminium casting capabilities in the United States and Europe.

"With ever increasing demand on safety and fuel economy and with consumers desiring superior driving performance, we project a significant increase in the use of aluminium castings in the critical chassis and suspension areas of the vehicle," commented Allen Zwierzchowski, President Alcoa Automotive Castings.