Elkem reviews Silicones division

Norway’s Elkem has initiated a strategic review of the Silicones division, with the aim of streamlining itself and creating capital to accelerate growth in the Silicon Products and Carbon Solutions divisions. The decision follows a full assessment of the company’s growth and return prospects, its capital allocation strategy and market dynamics in the silicones business. 

The Silicones division is a fully integrated player, from silicon metal to upstream siloxane and downstream specialties for multiple application areas. It has a global production footprint with key sites in France and China with exposure to both upstream and downstream specialities.  

In the latest fiscal year up to September 2024, divisional operating income was 2% up at €933 million, while EBITDA was €12.3 million compared to a €57.2 million loss in the same period in 2023. The improvement was driven by operational efficiencies, better utilisation, higher volumes and the ramp-up of new capacity. Further details are expected shortly.