Elkem Launches Strategic Review of its Silicones Division for Enhanced Growth Opportunities
Elkem ASA, a key player in the silicon-based materials sector, has announced the initiation of a strategic review of its Silicones division. This decision is aimed at not only optimizing the operations within Elkem but also reallocating capital to drive growth in its Silicon Products and Carbon Solutions divisions. Elkem's leadership arrived at this conclusion after an extensive evaluation of the growth potential, return prospects, and capital distribution strategy in the context of evolving market dynamics.
The Silicones division stands out as a fully integrated global leader in the silicones industry, encompassing the entire value chain from silicon metal production to the manufacturing of specialized silicones and siloxanes. These silicones are not just crucial components in numerous applications across different sectors, they also see increasing demand in various growing end-markets. Elkem is strategically positioned with crucial production facilities located in France and China, thereby ensuring both upstream and downstream access to specialty markets globally.
As of September 30, 2024, the Silicones division reported an operating income of NOK 10,962 million, which marks a 2% increase compared to the same period in the previous year. More notably, the year-to-date EBITDA showed significant recovery, climbing to NOK 145 million, a remarkable turnaround from a loss of NOK 672 million recorded in the same period last year. This surge in performance is attributed to various factors including operational efficiencies, improved utilization rates, increased production volumes, and the activation of new capacities.
Elkem's growth trajectory in the financial performance of the Silicones division has continued to be positive throughout 2024. Further updates on the financial specifics are expected in their forthcoming fourth quarter report, scheduled for release on February 12, 2025.
To fortify its strategic review process, Elkem has enlisted the expertise of ABG Sundal Collier ASA, a renowned financial advisory firm. The strategic considerations made within this review are classified as inside information under the EU Market Abuse Regulation and comply with the disclosure mandates of the Norwegian Securities Trading Act.
Elkem, established in 1904, has positioned itself as one of the leading providers of innovative, silicon-based materials that contribute to a sustainable future. The company's product range not only includes silicones but also encompasses advanced silicon products and carbon solutions, all of which leverage natural resources, renewable energy, and human innovation. Elkem collaborates with its customers to stimulate essential innovations in sectors such as electric mobility, healthcare, digital communication, and the development of smarter, sustainable cities.
With a workforce exceeding 7,400 individuals globally, Elkem is dedicated to its mission of delivering value to all stakeholders. In 2023, the company achieved an operating income of NOK 35.5 billion and received commendable ratings from CDP, an environmental impact non-profit organization, scoring an A on Forests and A- on Climate Change and Water Security. Elkem's shares are publicly traded on the Oslo Stock Exchange under the ticker symbol ELK and are included in the ESG Index, reflecting their commitment to sustainable business practices.
For further insights, stakeholders or interested parties may contact Elkem’s VP of Finance and Investor Relations, Odd-Geir Lyngstad, or the VP of Corporate Communications, Marianne Stigset, to discuss this strategic review and its implications for the company's future direction.
The Silicones division stands out as a fully integrated global leader in the silicones industry, encompassing the entire value chain from silicon metal production to the manufacturing of specialized silicones and siloxanes. These silicones are not just crucial components in numerous applications across different sectors, they also see increasing demand in various growing end-markets. Elkem is strategically positioned with crucial production facilities located in France and China, thereby ensuring both upstream and downstream access to specialty markets globally.
As of September 30, 2024, the Silicones division reported an operating income of NOK 10,962 million, which marks a 2% increase compared to the same period in the previous year. More notably, the year-to-date EBITDA showed significant recovery, climbing to NOK 145 million, a remarkable turnaround from a loss of NOK 672 million recorded in the same period last year. This surge in performance is attributed to various factors including operational efficiencies, improved utilization rates, increased production volumes, and the activation of new capacities.
Elkem's growth trajectory in the financial performance of the Silicones division has continued to be positive throughout 2024. Further updates on the financial specifics are expected in their forthcoming fourth quarter report, scheduled for release on February 12, 2025.
To fortify its strategic review process, Elkem has enlisted the expertise of ABG Sundal Collier ASA, a renowned financial advisory firm. The strategic considerations made within this review are classified as inside information under the EU Market Abuse Regulation and comply with the disclosure mandates of the Norwegian Securities Trading Act.
Elkem, established in 1904, has positioned itself as one of the leading providers of innovative, silicon-based materials that contribute to a sustainable future. The company's product range not only includes silicones but also encompasses advanced silicon products and carbon solutions, all of which leverage natural resources, renewable energy, and human innovation. Elkem collaborates with its customers to stimulate essential innovations in sectors such as electric mobility, healthcare, digital communication, and the development of smarter, sustainable cities.
With a workforce exceeding 7,400 individuals globally, Elkem is dedicated to its mission of delivering value to all stakeholders. In 2023, the company achieved an operating income of NOK 35.5 billion and received commendable ratings from CDP, an environmental impact non-profit organization, scoring an A on Forests and A- on Climate Change and Water Security. Elkem's shares are publicly traded on the Oslo Stock Exchange under the ticker symbol ELK and are included in the ESG Index, reflecting their commitment to sustainable business practices.
For further insights, stakeholders or interested parties may contact Elkem’s VP of Finance and Investor Relations, Odd-Geir Lyngstad, or the VP of Corporate Communications, Marianne Stigset, to discuss this strategic review and its implications for the company's future direction.
Topics General Business）
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