Elkem set to complete silicone expansion projects in China, France

Oslo – Elkem SA expects to complete its ongoing silicone expansions in France and China later this year: both projects intended to improve the cost-position of the group.

The Norwegian supplier is now finalising a €380-million expansion at its Xinghuo Silicones plant in China with commercial production due to start next month, said Elkem 18 April.

The project aims to increase Elkem's upstream capacity in China by 120 kilotonnes per annum (ktpa) or 50% to a total capacity of 360ktpa. (ERJ report)

By the end of 2024, the group expects to ramp up production at the expanded facility by 65ktpa, with estimated revenue of NOK1.5 billion (€127 million).

As previously stated, the Xinghuo silicones site is expected to generate an additional NOK5 billion in sales from downstream specialisation by 2030.

In France, Elkem is progressing a €36-million project to add 20ktpa or 20% of capacity for silicone intermediates at its facility in Roussillon. (ERJ report)

Initially set for completion in the third quarter of 2023, the project will address ‘a structural deficit of upstream siloxanes’ across Europe, Middle East and Africa (EMEA).

With the two expansion projects, Elkem said it aims to improve cost-positions of the group, mainly through lower energy and raw-materials consumption.

In particular, the new production line in China is expected to match levels seen at "the current lowest cost producers.”

“The new capacity will enable Elkem to benefit from lower cost levels while providing feedstock for production of higher-margin products downstream,” Elkem noted in its recently issued 2023 annual report.

Furthermore, according to the annual report, the projects support Elkem's strategic goal “to become top three in silicones worldwide.”