Elkem initiates strategic review of silicones business

Oslo - Elkem ASA has initiated a strategic review of its silicones division with the target to streamline the company.

The move, said Elkem 23 Jan, will enable allocation of capital to accelerate growth in the silicon products and carbon solutions divisions.

The Norwegian supplier said the decision was made following “a thorough assessment" of its growth and return prospects, its capital allocation strategy and "the market dynamics in the silicones business.”

The business unit is a fully integrated silicones operation, covering the production of silicon metal to upstream siloxane and downstream silicone specialties.

The division has production footprint in France and China with exposure both to the upstream and downstream speciality markets, said Elkem.

The unit reported operating income for the first three quarters of NOK10,962 million (€933 million), up 2% compared to the corresponding period in 2023.

Earnings for the nine months to 30 Sept 2024 came in at NOK145 million, up from a loss of NOK672 million reported for same period in 2023.

Elkem linked the improvements in 2024 to “operational efficiencies, better utilisation and higher volumes, as well as ramp-up of new capacity.”

The financial improvements, it said, continued throughout 2024, with further details to be provided about the fourth quarter of the year in February.

Elkem has engaged ABG Sundal Collier ASA as financial advisor.