Elkem Announces a Price Raise for Silicones

Elkem has announced a global price increase for its silicone products, set to take effect on August 15, subject to existing contract terms. The price hike will vary by product line, with a minimum increase of 10%. This adjustment is deemed essential for Elkem to sustain its investments in capacity expansion, equipment maintenance, and product development, ensuring that the company can continue to meet the growing needs of its customers safely and sustainably.

Over the past 18 months, Elkem's silicones division has achieved significant operational cost reductions and efficiency improvements. Despite these efforts, the savings have not been sufficient to counteract the substantial cost increases in several key areas. Rising expenses related to raw materials, packaging, energy, transportation and logistics, labor, and operational maintenance have exerted considerable financial pressure on the company.

To address these escalating costs and maintain its commitment to delivering high-quality silicone products, Elkem has determined that a price increase is necessary. The additional revenue generated from the price adjustments will be reinvested into the business, supporting ongoing efforts to expand production capacity, maintain and upgrade equipment, and drive product innovation.

Elkem remains dedicated to providing its customers with superior products and services. The company acknowledges the challenges posed by the current economic environment and appreciates the understanding and support of its customers as it navigates these changes. By implementing this price increase, Elkem aims to secure the resources needed to continue delivering reliable and sustainable solutions in the silicones market.

Elkem stands as a global leader in advanced silicon-based materials, dedicated to shaping a more sustainable future. The company specializes in the development of silicones, silicon products, and carbon solutions by leveraging natural raw materials, renewable energy, and innovative thinking. Elkem supports its customers in creating and enhancing vital innovations such as electric mobility, digital communications, health and personal care, and the development of smarter, more sustainable cities.

With a history dating back to 1904, Elkem boasts a global team of over 7,400 employees who are collectively committed to delivering on the company’s promise: "Delivering your potential." In 2023, Elkem reported an operating income of NOK 35.5 billion and earned prestigious CDP ratings of A for Forests and A- for Climate Change and Water Security. The company is publicly traded on the Oslo Stock Exchange under the ticker ELK and is included in the ESG Index. Elkem operates in markets including Mobility & Transportation, Healthcare, Smarter Cities & Construction, Material Science & Chemical, and Personal Care & Consumer Goods.