Elkem ASA Initiates Exclusive Sales Process for Its Silicones Division

Elkem ASA Launches Exclusive Sales Process for Silicones Division

Elkem ASA, a prominent global player in advanced silicon-based materials, has recently initiated an exclusive sales process for its Silicones division. This decision comes after the company's announcement in January 2025 regarding a strategic review aimed at streamlining operations and reallocating capital to spur growth in its Silicon Products and Carbon Solutions divisions.

The ongoing discussions with a major industrial entity in the global chemicals sector highlight Elkem's commitment to finding the best possible direction for its Silicones division, especially in a challenging market landscape. With the exclusive negotiations in place, Elkem is optimistic that this move will yield favorable outcomes for all of its stakeholders.

As part of its comprehensive strategic initiative, Elkem has researched various alternative options and, after careful consideration, has aligned itself with a partner that holds a strong position in the chemical industry. This partnership is expected to expedite the process of realizing the division's potential while enhancing value for the company and its investors.

Given the dynamism of the current marketplace, Elkem believes this step is pivotal for the future stability and growth of the Silicones division and the broader company. The closing of the transaction is anticipated to occur in the first half of 2026, contingent upon successful negotiations and necessary approvals.

Elkem's financial advisor, ABG Sundal Collier ASA, is tasked with navigating the complexities of this sales process, ensuring that all parties involved engage in a well-structured negotiation framework. This careful approach mirrors Elkem's longstanding commitment to enhancing its operational effectiveness while positioning itself favorably in the rapidly evolving global market.

Since its establishment in 1904, Elkem has cultivated a reputation as a distinguished provider of silicon-based materials. The company operates with a mission to foster innovations that contribute to a more sustainable future. Key sectors benefiting from Elkem's products include electric mobility, digital communications, and health and personal care.

In 2024, Elkem reported an operating income of NOK 33 billion, a testament to its robust business model and market presence. Additionally, the company has earned top rankings regarding sustainability efforts, achieving laudable scores from CDP on issues such as climate change and water security.

Elkem’s robust workforce of over 7,200 employees remains anchored to a purpose: delivering the potential of silicon-based innovations that empower a sustainable future. As the company navigates the complexities of the Silicones division sale, it will be interesting to observe how these strategic shifts will unfold and shape its trajectory in the coming years.

For more information regarding this transition, stakeholders and interested parties can contact Odd-Geir Lyngstad, VP of Finance & Investor Relations, at +47 976 72 806 or via email at [email protected]`

Marianne Stigset is reachable for corporate communications at +47 411 88 482 or at [email protected].

Elkem continues to align its strategy with emerging market trends, ensuring that it remains at the forefront of sustainable technology and responsible business practices.