Elkem ASA has initiated a strategic review of its Silicones division as part of its efforts to streamline operations and reallocate resources to support the growth of its Silicon Products and Carbon Solutions divisions. This decision follows an in-depth evaluation of Elkem’s growth prospects, capital allocation strategy, and market conditions in the silicones sector.

The Silicones division is a fully integrated global leader, covering the entire silicones value chain from silicon metal to upstream siloxane and downstream silicone specialties. Its products are used in various applications across growing end-markets, and the division operates a global production network with key manufacturing sites in France and China. Elkem’s Silicones division plays a pivotal role in both upstream and downstream specialty markets.

For the year-to-date period ending September 30, 2024, the Silicones division reported operating income of NOK 10,962 million, marking a 2% increase compared to the same period in 2023. The year-to-date EBITDA also showed significant improvement, rising to NOK 145 million, compared to a loss of NOK 672 million during the corresponding period in 2023. This positive shift is largely driven by enhanced operational efficiencies, better utilization rates, and higher volumes, alongside the ramp-up of new production capacities.

Despite the competitive landscape, the Silicones division has demonstrated resilience with continued improvements in its financial performance through 2024. The company’s strategic review is designed to assess the division’s future direction while positioning the company to better capitalize on emerging growth opportunities in its Silicon Products and Carbon Solutions divisions. Elkem has appointed ABG Sundal Collier ASA as its financial advisor to support this process.

The review aims to evaluate how to best optimize the Silicones division’s operations in light of the company’s broader growth strategy. The company’s strong operational improvements, coupled with the ramping up of new production capacity, suggest that Elkem is on track for a more robust financial future. Additional details about the Silicones division’s performance will be disclosed in Elkem’s fourth-quarter 2024 report, scheduled for release on February 12, 2025.

Elkem’s commitment to innovation and efficiency, along with its strategic reassessment of the Silicones division, underscores the company’s determination to enhance its competitiveness while driving future growth and sustainability in its core businesses.

Elkem is a global leader in advanced silicon-based materials, driving a more sustainable and innovative future. The company specializes in the development of silicones, silicon products, and carbon solutions, blending natural raw materials, renewable energy, and human ingenuity. Elkem supports its customers in advancing key innovations across various sectors, including electric mobility, digital communications, healthcare and personal care, as well as the creation of smarter, more sustainable cities.