Elkem has initiated a strategic review of its Silicones division with the goal of streamlining the company and enabling allocation of capital to accelerate growth in the Silicon Products and Carbon Solutions divisions. The decision by the company to initiate the strategic review follows a thorough assessment of the growth and return prospects of Elkem, as well as its capital allocation strategy and the market dynamics in the silicones business.

The Silicones division is a fully integrated leader in the silicones industry, from silicon metal to upstream siloxane and downstream silicone specialties. The silicones products have multiple application areas and exposure to several growing end-markets, and Elkem’s division has a global production footprint with key sites in France and China with exposure both to the upstream and downstream specialty markets.

Silicones reported year-to-date operating income of NOK 10,962 million (approx. $985 million) as of September 30, 2024, which was 2% higher than the corresponding period in 2023. The year-to-date EBITDA was NOK 145 million (approx. $13 million) as of 30 September 2024, which was an improvement compared to NOK -672 million (approx. -$60 million) in the corresponding period in 2023. Improvements in 2024 results are driven by operational efficiencies, better utilization and higher volumes, as well as ramp-up of new capacity. The financial improvements in the Silicones division have continued throughout 2024, and further details will be provided in the fourth quarter 2024 report, scheduled for 12 February 2025. 

Elkem has engaged ABG Sundal Collier ASA as financial advisor.

This release contains inside information related to Elkem ASA pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. 

Learn more about Elkem at www.elkem.com.