Elkem ASA has entered an exclusive sales process for its Silicones division, a key step in its strategy to streamline the company and focus on its Silicon Products and Carbon Solutions divisions.
Elkem ASA, a global leader in advanced silicon-based materials, announced today that it has entered into an exclusive sales process for its Silicones division. This significant development marks a pivotal moment for the company, following a strategic review initiated on January 23, 2025. The decision to pursue a sale is a cornerstone of Elkem’s long-term vision to streamline its operations and accelerate growth in its core Silicon Products and Carbon Solutions divisions.
The company has chosen to enter into exclusive negotiations with a major industrial player that holds a substantial presence in the global chemicals industry. While the counterparty's identity remains confidential at this time, Elkem's leadership is confident that this potential transaction represents the most favorable outcome for the Silicones division and all of the company's stakeholders.
This move is a direct result of a comprehensive assessment of Elkem's growth and return prospects, its capital allocation strategy, and the current market dynamics within the silicones sector. The strategic review was launched to allow Elkem to dedicate more capital and resources to its high-growth areas. The Silicon Products division, which includes silicon, ferrosilicon, foundry alloys, and microsilica, and the Carbon Solutions division, a supplier of electrode paste and other carbon products, have been identified as the key drivers of future growth for the company.
The Silicones division, with its global production footprint and a wide range of applications from electric mobility to personal care, has been a significant part of Elkem's business. However, despite improvements in its financial performance throughout 2024, the challenging market environment for silicones has prompted Elkem to re-evaluate its long-term commitment to the business. The company's first-quarter 2025 report had already reclassified the Silicones division as a "discontinuing operation" and "assets held for sale," indicating the direction of this strategic review.
The exclusive negotiation period is a critical phase, during which the terms and conditions of a definitive agreement will be ironed out. The completion of the transaction is subject to these negotiations, a final agreement, and all necessary regulatory approvals. Elkem anticipates that the closing of the sale will occur in the first half of 2026. This timeline provides a clear path forward for both Elkem and the potential buyer, ensuring a smooth transition.
Product – silicone rubber
