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competitiveness and financial resilience by introducing a new corporate
structure and reducing working capital and annual costs following the approval
of the announced Silicones transaction. These cash optimising measures amount to
NOK 1.3 billion, in addition to permanent cost reductions with an annual effect
of NOK 0.6 billion starting from third quarter 2026. The cost reductions form a
part of Elkem’s efforts to streamline operations and are aimed at enhancing
profitability amid ongoing market challenges.
New corporate structure
On 13 February 2026, Elkem announced the agreement to sell majority of the
Silicones division to Bluestar to create a focused, globally-leading metals and
materials producer. Following this transaction, Elkem is unveiling a new
corporate structure, composed of three divisions: Elkem Silicon, Elkem Foundry
Alloys and Elkem Carbon.
Elkem Silicon will be led by SVP Luiz Simão. The division will be a global
producer and provider of silicon, ferrosilicon, Silgrain[® ]silicon, Elkem
Microsilica[®], and quartz, and will be composed of eight main production sites
in Norway, Iceland, and Spain, including a silicones production site in France.
Elkem Foundry Alloys will be led by SVP Inge Grubben-Strømnes. The division will
be a globally-leading provider of foundry alloys and composed of seven
production sites in Norway, Canada, China, Paraguay, United Kingdom, and India.
Elkem Carbon will be led by SVP Izaias Entringer. The division is a world
leading supplier of electrode paste and other carbon products to metallurgical
industries, and will be composed of six main production sites in Norway,
Slovakia, Brazil, China, and South Africa.
Market update
Elkem’s markets remain challenging, with continued pricing pressures and weak
demand. For the fourth quarter 2025, Elkem ex. Silicones reported an EBITDA of
NOK 485 million, compared to NOK 800 million in the corresponding quarter of
2024.
The conflict in the Middle East has added to the macro-economic uncertainty and
is impacting the value chains for many of Elkem’s customers. Elkem has reduced
production at several of its plants and temporarily curtailed all production at
the Rana and Salten plants in Norway. Elkem expects market conditions to
gradually improve, however, the first half of 2026 will be weaker than
previously expected and visibility for now remains less clear. Power prices in
the Northern part of Norway have declined and the expected positive financial
contribution from the sale of contracted power to the market will be lower than
anticipated.
Cost reduction programme
In response to the adverse market conditions, Elkem is implementing significant
cost-cutting measures as part of its reorganisation.
Elkem will reduce its global workforce by approximately 300 FTEs by year-end
2026, which represents approximately 10 per cent of the total work force after
the sale of the majority of the Silicones division. This process will begin
immediately and will primarily affect functions directly impacted by sale of
Silicones, as well as support functions at corporate and division levels. Blue
collar positions will to a lesser extent be affected.
In addition, the Company is targeting working capital and capital expenditure
improvements totaling NOK 1.3 billion, alongside salary and operational
expenditure cost reductions amounting to NOK 0.6 billion, with approximately
half of these savings expected to be realised by year-end 2026. The overall
estimated cash impact for 2026 stands at NOK 1.6 billion, while investments will
be capped at a maximum of NOK 1.0 billion for the year.
“As we move forward following the sale of the majority of our Silicones
division, Elkem is taking decisive steps to strengthen our competitiveness and
ensure financial resilience. Our focus on cost reductions and efficiency is
essential to secure Elkem’s future as a robust, agile company capable of seizing
new opportunities rapidly. We believe these measures will position us to deliver
long-term value for our customers, employees, and stakeholders once market
conditions improve,” said Elkem CEO Helge Aasen.
Elkem remains firmly committed to conducting this transition with transparency
and care, ensuring close collaboration with employee representatives throughout
the process. The Company’s approach will be guided by its core values of respect
and inclusion.
Elkem will host a capital markets day in the second half of 2026 to present its
new strategy and updated financial and climate objectives.
For further information, please contact:
Odd-Geir Lyngstad
VP Finance & Investor Relations
Tel: +47 976 72 806
E-mail: odd-geir.lyngstad@elkem.com
Marianne Stigset
VP Corporate Communications & Public Affairs
Tel: +47 411 88 482
E-mail: marianne.stigset@elkem.com
About Elkem
With a strong track record since 1904, Elkem is one of the world’s leading
providers of advanced silicon-based materials shaping a better and more
sustainable future. The company develops silicones, silicon products and carbon
solutions by combining natural raw materials, renewable energy and human
ingenuity. Elkem has been awarded top score of A on Forests and Water Security,
and B on Climate Change from CDP. Elkem is listed on the Oslo Stock Exchange
(ticker: ELK), where the company is also included in the ESG Index.
www.elkem.com
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