Elkem has initiated a strategic review of the Silicones division. The review is initiated with a target to streamline Elkem, as well as to enable allocation of capital to accelerate growth in the Silicon Products and Carbon Solutions divisions.

The decision by the company to initiate the strategic review follows a thorough assessment of the growth and return prospects of Elkem, as well as its capital allocation strategy and the market dynamics in the silicones business.

Silicones is a fully integrated global supplier in the silicones industry, from silicon metal to upstream siloxane and downstream silicone specialties. The silicones products have multiple application areas and exposure to several growing end markets, and Elkem’s division has a global production footprint with key sites in France and China with exposure both to the upstream and downstream specialty markets.

Silicones reported year-to-date operating income of NOK 10,962 million as of September 30, 2024, which was 2% higher than the corresponding period in 2023. The year-to-date EBITDA was NOK 145 million as of September 30, 2024, which was an improvement compared to NOK -672 million in the corresponding period in 2023. Improvements in the company’s 2024 results are driven by operational efficiencies, better utilization and higher volumes, as well as ramp-up of new capacity. The financial improvements in the Silicones division have continued throughout 2024.