Published: July 21, 2025, 7:20 a.m. KST
Reporter: Sohyun Kwon
Original Link (Korean)
P2F market projected to reach USD 6.9 billion by 2033
First P2F unit delivered to Israel’s IAI
Possible shift to direct contract following Boeing’s acquisition of Spirit AeroSystems
95% export-driven model shifts gears… Enters path to profitable growth
[Edaily Marketin | Reporter Sohyun Kwon]
Korean aircraft parts manufacturer ASTK (067390) is rapidly emerging as a key pillar in the global aerospace supply chain. In particular, expectations are rising that ASTK will transition to a direct supply structure with Boeing once the aircraft giant completes its acquisition of Spirit AeroSystems, a current customer of ASTK. This development is viewed as a potential turning point for the Korean aerospace parts industry.
According to the aircraft parts industry, the Passenger to Freighter (P2F) conversion market has been growing rapidly since the COVID-19 pandemic, as of the 21st. U.S. analytics firm Spherical Insights forecasts that the global P2F market will expand from USD 3.8 billion in 2023 to USD 6.9 billionby 2033.
Riding this wave, ASTK, a specialized manufacturer of aircraft structures, is also expected to experience significant growth. The company produces fuselages (E2 Fuselage), Section 48, and upper/lower decks (U/L Deck), with the majority of its products exported overseas.
The P2F conversion project with Israel Aerospace Industries (IAI) officially entered full gear last month with the successful delivery of the first unit. The contract, which has expanded to a total value of KRW 81.2 billion (approx. USD 58.6 million), is cited as a milestone that proves ASTK’s technological capabilities and credibility in the global aircraft conversion market.
In addition to IAI, ASTK is also strengthening key OEM (Original Equipment Manufacturer) partnerships, including a military aircraft parts supply contract with Brazil’s Embraer worth approximately KRW 74 billion (approx. USD 53.3 million), and a long-term supply agreement with Spirit AeroSystems.
Among these, the deal with Spirit AeroSystems stands out. As Boeing’s acquisition of Spirit nears completion, there is a high possibility that ASTK’s existing supply structure will shift to a direct contract with Boeing. It is rare for a Korean aerospace parts manufacturer to enter a direct contractual relationship with a global aircraft maker, and this could become a crucial milestone in solidifying ASTK’s technological credibility and price competitiveness.
ASTK’s business structure is also improving rapidly. The company achieved an operating profit turnaround in Q3 2024, and a full-fledged performance recovery is expected in 2025. Over 95% of ASTK’s revenue comes from exports, and its aircraft structure segment, which has ultra-precision and large-scale machining capabilities, is well positioned to benefit directly from the increase in global aircraft production.
ASTK is evolving from a single-client-dependent business structure into a more stable and diversified enterprise by expanding its supply of P2F-based structures, diversifying its E2 aircraft assembly parts, adding new defense sector portfolios such as the C-390 program, and broadening its customer base.
An ASTK official stated, “We are moving beyond being a simple parts supplier to being recognized by global aviation majors like IAI, Embraer, and Boeing as a ‘trusted supply chain partner,’” and added, “Going forward, we aim to internalize technology by participating in government R&D projects and advanced aviation technology development, growing into a representative company that elevates the global standing of Korea’s aerospace industry.”
Reporter: Sohyun Kwon (juddie@edaily.co.kr)