KRW 12.0 billion (USD 8.28 million) paid into KAF Aero’s third-party allocated capital increase
Multi-purpose aerospace production infrastructure to be built near ASTK headquarters
[Edaily Market-in | Reporter Sohyun Kwon] ASTK (067390), an aircraft parts manufacturer, announced on the 23rd that its subsidiary KAF Aero successfully raised KRW 12 billion (approx. USD 8.33 million) through a third-party allocated paid-in capital increase, also on the 23rd.
On the 10th, Alpha Aero, ASTK’s largest shareholder, signed a new share subscription agreement with KAF Aero, and it plans to pay in the capital increase proceeds on the 27th. Through participation in this paid-in capital increase, Alpha Aero will acquire 2.4 million newly issued shares, and KAF Aero’s paid-in capital will increase to KRW 16.5 billion (approx. USD 11.45 million).
The purpose of KAF Aero’s fundraising is facility investment, including plant and equipment. Using the raised funds, it plans to build a multi-purpose aerospace production infrastructure by targeting completion by the end of October, leveraging a site of approximately 16,500 m² in the Jongpo Industrial Complex, Sacheon City, near ASTK’s headquarters.
It is understood that Alpha Aero’s decision to proceed swiftly with this investment aims to expand production lines in response to expected demand growth for ASTK’s existing business, including Boeing 737 programs, and secure production capacity in advance for new growth businesses such as Korean-style future advanced aircraft (AAV, Advanced Air Vehicle), as well as participation in aerospace-related businesses in which ASTK has recently been cooperating with ALMAC, by preemptively securing relevant production lines.
An ASTK official said, “KAF Aero, established in 2017, is a subsidiary that has produced high-precision aircraft parts and possesses automation capabilities related to precision machining based on CNC (Computerized Numerical Control).” The official added, “With the construction of this aerospace production infrastructure as a turning point, we expect to expand synergies not only with ASTK but also with ALMAC—in which UAMCO has invested—and with AERO COTEC, among others, and to make a leap forward as an advanced aerospace manufacturing hub.”