Alcoa announced today it has a letter of intent to license its technology to South Korean auto-parts manufacturer Seohan Industries Co. Ltd. for casting aluminum chassis and suspension components and modules. Seohan will employ the technology to manufacture automotive components in South Korea, Japan, China, and Australia.

According to Alcoa, it will license its vacuum riser-less and pressure riser-less casting (VRC/PRC) technology and sell related production assets to Seohan.

Seohan plans to set up a plant that will use the Alcoa proprietary technology to produce aluminum castings in South Korea, to supply OEMs in the region with structural components. Alcoa says the plant will compliment and expand its VRC/PRC capabilities in the U.S. and Europe.

According to Alcoa, the letter of intent provides the framework for the two companies "to identify, develop, and launch programs."

Allen Zwierzchowski, president of Alcoa Automotive Castings, stated: "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 aluminum castings in the critical chassis and suspension areas of the vehicle. We are excited to be working with a proven supplier like Seohan in order to establish the VRC/PRC technology in Asia."