#Norway #Oslo #strategic review #Elkem ASA #Silicones Division

Elkem ASA Initiates Strategic Review of Silicones Division

Elkem ASA, a prominent player in the silicon-based materials market, has recently announced the initiation of a strategic review focused on its Silicones division. This decision is part of a broader strategy to streamline operations and reposition capital for enhancing growth in its Silicon Products and Carbon Solutions divisions.

Purpose of the Review

The review comes after a comprehensive evaluation of Elkem's capital allocation strategy and the overall growth and return prospects within the silicones market. With an impressive global presence, the Silicones division encompasses the entire silicone supply chain—from silicon metal to specialized downstream silicone products. This division caters to various applications and is well-positioned in several expanding markets. Key production facilities located in France and China further solidify its role in the global silicones landscape.

Financial Performance

For the year to date, as of September 30, 2024, the Silicones division reported an operating income of NOK 10.96 billion, reflecting a 2% increase compared to the same period the previous year. Additionally, the division's EBITDA improved significantly, reporting NOK 145 million, a sharp recovery from a loss of NOK 672 million during the comparable timeframe in 2023. This growth is attributed to operational efficiencies, enhanced utilization rates, higher product volume, and the ramp-up of new capabilities, showcasing Elkem's ongoing recovery and innovation within this sector.

Strategic Partnering

To guide this review effectively, Elkem has enlisted ABG Sundal Collier ASA as a financial advisor. The findings of this strategic review are expected to offer insights into optimizing the Silicones division further, aligning operations with the company’s goal of sustainable growth and innovation.

In light of these developments, Elkem's commitment to improving its product offerings and ensuring value creation for stakeholders remains paramount. The full scope of this review and its implications will be detailed in the fourth-quarter report for 2024, scheduled for release on February 12, 2025.

About Elkem

Founded in 1904, Elkem has solidified its status as a leading global provider of advanced silicon-based materials. The company is deeply committed to sustainability, developing product ranges that support electric mobility, digital communication, health and personal care, and the creation of smarter cities. With over 7,400 employees worldwide, Elkem is not only a pioneer in silicon products and solutions but also stands out with its strong environmental, social, and governance (ESG) ratings. In 2023, the company generated an operating income of NOK 35.5 billion, further establishing its influential role in the industry.

For further inquiries, please reach out to Odd-Geir Lyngstad, VP of Finance and Investor Relations at Elkem.

Contact Information:

• - VP of Finance and Investor Relations: Odd-Geir Lyngstad, Tel: +47 976 72 806
• - VP of Corporate Communications: Marianne Stigset, Mobile: +47 411 88 482

This strategic shift within Elkem reflects the company’s proactive approach to navigating the complexities of the silicones market while laying a strong foundation for future growth and innovation.