Elkem launches a review of its silicones division. This streamlines operations. They reallocate capital. This shifts focus to silicon products and carbon solutions. The silicones market faces challenges. Overcapacities in China and weak consumer markets impact operations.
Strategic Reallocation in a Dynamic Market
Elkem runs nine silicone sites globally. Sites are in Europe, Asia, the US, and Brazil. Key sites locate in France and China. Elkem invested NKr4.4bn. Capacity increased by 140,000 t/yr in 2024. Chinese improvements finished in May. The French project completion was set for Q4. Silicones division earnings were NKr145mn. This was for January-September 2024. It rose from a NKr672mn loss in 2023. Recovery resulted from efficiencies and volumes. New capacity ramp-ups helped.
Elkem hired ABG Sundal Collier for advice.
The review’s timeline is not public. Elkem reports Q4 results on February 12.
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