Aluminium RAl-1 and its alloy Al17Si5Fe3Cu1.1Mg0.6Zr composite materials were manufactured from powder mixtures by cold pressing, hot closed-die forging at 480oC and heat treatment. Powders ranging in composition in 20 wt.% steps of the alloy were mixed in a Turbula mixer for 1 h. The preforms with alloy concentrations of 80 and 100 % were hot consolidated at 480oC and closed-die forged at the same temperature. The effect of chemical composition on microstructure and mechanical properties in bending and compression was examined. Bend strength ranged from 400 to 540 MPa, compression strength from 415 to 744 MPa and hardness from 32 to 203 HB. Simulated distribution of component materials for a cross-section of the forging and shapes of the materials were analysed using LARSTRAN/Shape finite element program and are qualitatively comparable with the results obtained by forging.