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Elkem
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Elkem ASA is an international chemical company that produces silicones, silicon, alloys for the foundry industry, carbon and microsilica, and other materials.Elkem was founded in 1904, and has more than 7,200 employees and fields 31 production sites worldwide. Elkem is also listed on the Oslo Stock Exchange (ticker: ELK).
Key Information
History
[edit]
Elkem was founded in 1904 by the industrial entrepreneur Sam Eyde (1866 – 1940) as Det Norske Aktieselskab for elektro-kemisk Industri (Elektrokemisk). The company was established with funding from the prominent Wallenberg family and Knut Tillberg.[1]
In 1917 a ferroalloy plant was acquired and Elkem started production of the Söderberg electrode.[1]
In 1972, the company merged with Christiania Spigerverk, also becoming a producer of steel.[2]
Between 1981 and 1984 Elkem acquired Union Carbide plants in Norway and North America and in 1986 the plants at Thamshavn and Bjølvefossen.[3]
In the 2000s Elkem had acquired Icelandic Alloy, Remi Claeys Aluminium and Sapa.[3]
In January 2005, Orkla bought a controlling stake in the company.[4][5]
In 2006, Elkem closed its Meraker plant, which it had bought from Union Carbide in 1981, causing around 100 employees to lose their jobs.[6][7]
In January 2011, Elkem was sold by Orkla to China National Bluestar for $2 billion.[8][9]
In 2018, the company became listed on the Oslo Stock Exchange.[10]
As stated in its annual report from 2024, the company had more than 7,200 employees at 31 production sites, and a revenue of 33 billion NOK. China National Bluestar (52.91%) is the largest shareholder, ahead of Folketrygdfondet (4.28%) and Must Invest (3.07%).[11]
See also
[edit]References
[edit]- ^ a b Sogner, Knut (2014). Creative Power (PDF). Oslo: Messel Forlag AS. pp. 11–13. ISBN 9788276311242.
- ^ Sogner, Knut (2014). Creative Power (PDF). Oslo: Messel Forlag AS. pp. 48–51. ISBN 9788276311242.
- ^ a b Antonsen, Robin; Gram, Trond (2025-08-05), "Elkem", Store norske leksikon (in Norwegian), retrieved 2025-08-06
- ^ Meyer, Henrik D.; Finans, null TDN (2005-01-10). "Orkla tar kontroll i Elkem". www.dn.no. Retrieved 2025-08-06.
- ^ "Orkla - Orkla acquires controlling interest in Elkem". www.orkla.com. Retrieved 2025-08-06.
- ^ "Orkla - Driften ved Elkem Meraker avvikles". www.orkla.com. Retrieved 2025-08-06.
- ^ "Meraker Smelteverk", Store norske leksikon (in Norwegian), 2024-11-26, retrieved 2025-08-06
- ^ "Orkla sells Elkem to China National Bluestar". Wallstreet Online. 11 January 2011. Retrieved 26 February 2018.
- ^ "Orkla sells Elkem to China's BlueStar for $2 bln". Reuters. 2011-01-11. Retrieved 2025-08-06.
- ^ "Our history | About Elkem". Elkem.com. Retrieved 2025-08-06.
- ^ "Integrated annual report 2024" (PDF). Elkem. 2025-03-31.
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Elkem
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Overview
Founding and Headquarters
Elkem was founded on January 2, 1904, by Norwegian industrialist Sam Eyde, engineer Knut Tillberg, and the Swedish Wallenberg family—specifically brothers Knut and Marcus Wallenberg—as the Norwegian Stock Company for Electrochemical Industry at Kristiania, known in Norwegian as Kristiania Elektrokemisk AS.[2] The company's inception was driven by the vision to harness Norway's vast hydroelectric resources for large-scale industrial production, particularly through electrochemical processes aimed at manufacturing metals and related materials.[7] This founding reflected a strategic effort to transform abundant natural energy into economic value, positioning Elkem at the forefront of Norway's emerging electrochemical sector.[8] From its outset, Elkem's operations emphasized the utilization of hydroelectric power to fuel energy-intensive processes, capitalizing on Norway's favorable geography and water resources to enable competitive industrial output on a global scale.[9] The founders sought to build an internationally oriented enterprise rooted in local strengths, focusing on innovative applications of electricity for material production that would drive Norway's industrialization.[10] Elkem maintains its headquarters in Oslo, Norway, at Drammensveien 169, where the corporate office functions as the primary center for strategic oversight, governance, and coordination of its worldwide activities.[11] This location underscores the company's Norwegian origins while supporting its role in directing global operations across silicon-based materials and advanced manufacturing.[12]Corporate Structure and Ownership
Elkem ASA operates as an allmennaksjeselskap, a form of Norwegian public limited company, and has been listed on the Oslo Stock Exchange under the ticker symbol ELK since its initial public offering in February 2018. As the parent entity of the Elkem Group, it oversees a network of subsidiaries and joint ventures across multiple countries, focusing on governance through adherence to the Norwegian Code of Practice for Corporate Governance.[13] The company's ownership structure features China National Bluestar (Group) Co., Ltd. as the majority shareholder through its subsidiary Bluestar Elkem International Co. Ltd S.A., which holds 52.91% of the outstanding shares (338,338,536 shares out of a total of 639,441,378) as of December 31, 2024.[14][13] Other notable shareholders include Must Invest AS with 3.07% (19,630,095 shares), the Norwegian Government Pension Fund Global (Folketrygdfondet) with 2.79% (17,859,170 shares), and Pareto Aksje Norge Verdipapirfond with 2.58% (16,484,126 shares), reflecting a concentrated ownership with the top 20 holders controlling over 80% of the company.[14] Leadership at Elkem is headed by Chief Executive Officer Helge Aasen, who has served in the role since October 2021 and is responsible for the Group's overall strategic direction and operational execution.[13] The Board of Directors, comprising 11 members as of December 31, 2024—including eight elected by shareholders and three by employees—is chaired by Bo Li, elected to the position in April 2024 following the annual general meeting.[13] Key board members include Vice Chair Dag Jakob Opedal, along with shareholder-elected directors such as Marianne Færøyvik and Thomas Eggan, and employee representatives; the board held 10 meetings in 2024 to address strategy, risk management, and sustainability oversight.[15][13] The board's primary responsibilities encompass supervising day-to-day management, ensuring organizational integrity, approving annual plans and budgets, and implementing controls over financial reporting and asset management, while specialized committees like the Audit and Remuneration Committees handle targeted governance functions such as sustainability reporting and executive compensation.[13] Financially, Elkem achieved an operating income of 33.0 billion Norwegian kroner in 2024, supporting its global operations amid a focus on cost efficiency and market positioning.[13] The company employed 7,530 people worldwide as of December 31, 2024, including 7,163 permanent staff, 134 temporary workers, and 233 on non-guaranteed hours, distributed across regions with the largest concentrations in Asia-Pacific (3,398) and Europe, Middle East, and Africa (3,399).[13]History
Early Years (1904–1960)
Elkem was founded in 1904 by Norwegian engineer Sam Eyde, along with Knut Tillberg and the Wallenberg brothers, as Det Norske Aktieselskap for Elektrokemisk Industri, initially focused on harnessing Norway's abundant hydropower for electrochemical processes such as the Birkeland-Eyde method for producing synthetic fertilizers.[16] In its formative years, the company rapidly expanded its operations by establishing several key plants in southern Norway, including Arendals Smelteverk for silicon carbide production using imported German methods, as well as facilities for aluminum and calcium carbide manufacturing.[16] These early ventures capitalized on local resources like quartz and renewable energy, laying the groundwork for Elkem's expertise in high-temperature electrochemistry. A pivotal development occurred in 1917 when Elkem acquired a ferroalloy plant in Kristiansand, later known as the Fiskaa works, which became central to its technological advancements.[17] At this site, the company initiated production of the Söderberg electrode, a self-baking, continuous electrode system that revolutionized smelting by enabling stable operations at temperatures exceeding 2,000°C, particularly for aluminum production.[16][18] The innovation, credited to engineers including Carl Wilhelm Söderberg, Mathias Sem, Gustav Jebsen, and Jens Westly, was patented in 1918 and quickly adopted for ferroalloy furnaces, enhancing efficiency in electrode technology.[16] Concurrently, during the 1910s, Elkem refined silicon carbide production processes at Arendals Smelteverk, applying the material in abrasives and refractories due to its hardness and thermal resistance.[16] The period was not without significant challenges, particularly from the impacts of the World Wars. During World War I, Elkem encountered shortages of raw materials, prompting collaborations with the Norwegian state to develop alternative processes.[16] World War II further exacerbated issues, with disruptions to raw material imports and energy supplies straining operations, though strategic contracts with U.S. firms like Reynolds Metals helped sustain the company through the 1940s.[16] By the 1950s, Elkem had stabilized and expanded into ferrosilicon production, culminating in the 1958 establishment of the Mosjøen aluminum plant in partnership with Alusuisse, marking a shift toward broader metallurgical capabilities.[16]Expansion and Mergers (1960–2010)
During the 1960s and 1970s, Elkem pursued strategic mergers to bolster its position in the ferroalloys sector. In 1972, Elkem merged with Christiania Spigerverk, a prominent Norwegian producer of ferrosilicon and steel, forming Elkem Spigerverket and significantly enhancing Elkem's capabilities in ferrosilicon production.[19] This merger integrated Christiania Spigerverk's established operations in Oslo, allowing Elkem to expand its domestic metallurgical output and diversify into steel-related alloys.[19] The 1980s marked a period of aggressive international expansion through acquisitions, particularly in silicon and alloy facilities. Between 1981 and 1984, Elkem acquired several ferroalloys plants from Union Carbide, including operations in Norway and North America, which strengthened its global footprint in metallurgical silicon production.[20][21] In 1986, Elkem further consolidated its Norwegian assets by acquiring the Thamshavn and Bjølvefossen plants, key sites for silicon metal manufacturing that bolstered production capacity and energy efficiency.[22][23] Entering the 2000s, Elkem focused on diversification into aluminum and advanced alloys via targeted acquisitions. Between 2002 and 2003, Elkem progressively acquired Icelandic Alloys hf., starting with a 10.49% stake from the Icelandic state in December 2002 and completing full ownership by late 2003 through additional share purchases, renaming it Elkem Iceland ehf. in 2008.[24] This move expanded Elkem's presence in renewable energy-dependent silicon production in Iceland. In 2003, Elkem, through its subsidiary Sapa, gained sole control of Remi Claeys Aluminium NV, a Belgian aluminum extrusions firm, enhancing its portfolio in lightweight materials for construction and transportation.[25] Earlier, in 2001, Elkem had secured control of Sapa AB, a major Swedish aluminum profiles producer, by increasing its stake to over 50% following incremental purchases since 1998, which facilitated synergies in aluminum processing and global market access.[26][27] A pivotal shift occurred in 2005 when Orkla ASA acquired a controlling 50.3% stake in Elkem for approximately NOK 3.5 billion, marking the end of its independent structure and initiating operational restructuring to optimize its metals and chemicals divisions.[28] This ownership change enabled Orkla to integrate Elkem's assets, including Sapa, into a broader industrial strategy focused on value creation through cost efficiencies and portfolio streamlining.[29]Recent Developments (2010–present)
In 2011, Orkla ASA sold its Elkem subsidiary to China National Bluestar Group Co., Ltd., a subsidiary of state-owned China National Chemical Corporation (ChemChina), for USD 2 billion in an all-cash transaction that marked Elkem's transition to Chinese majority ownership.[30] This deal, completed after regulatory approvals including from the European Commission, enabled Elkem to integrate with Bluestar's silicone operations and expand its Asian footprint, while retaining its Norwegian headquarters and operational independence.[31] Efficiency initiatives that began with the 2006 closure of the Meråker ferrosilicon plant in Norway—part of a broader restructuring to consolidate production at more competitive sites—persisted into the 2010s under new ownership, emphasizing cost optimization and capacity rationalization without major additional shutdowns.[32] These efforts shifted toward investments in high-efficiency technologies, such as cogeneration systems at Chinese facilities acquired post-2011, supporting sustained profitability amid volatile commodity markets.[33] Elkem returned to public markets with an initial public offering in March 2018 on the Oslo Stock Exchange, where shares were priced at NOK 29 and trading commenced shortly thereafter, raising approximately NOK 5.5 billion in gross proceeds.[4] The capital influx funded the acquisition of two silicone production plants in China—Jiangxi Bluestar Xinghuo Organic Silicone and Bluestar Silicones—from parent company Bluestar, enhancing vertical integration and market position in the growing Asian silicones sector.[34] Post-2020, Elkem navigated global disruptions including the COVID-19 pandemic and geopolitical tensions by bolstering supply chain resilience through regional diversification, long-term supplier audits (achieving 100% coverage for raw materials in 2024), and integrated value chains in Europe and Asia to ensure operational continuity and mitigate demand fluctuations, such as delayed recovery in China's construction market.[33] In alignment with energy transitions, the company advanced decarbonization efforts, including increasing biocarbon usage to 24% of reducing agents by 2024 (targeting 50% by 2031), launching a carbon capture pilot at its Rana facility with 95% CO2 capture efficiency, and securing renewable power contracts covering over 80% of Norwegian operations.[33] These adaptations contributed to financial stability, with operating revenues reaching NOK 33 billion in 2024 despite high energy costs and market volatility.[33] In 2025, Elkem reported an EBITDA of NOK 829 million for the third quarter, reflecting strong operational performance amid cost improvements.[35] However, facing high energy costs and low demand, the company partially curtailed ferrosilicon production at its plants in Rana, Norway, and Iceland in October 2025.[36] Additionally, Elkem initiated an exclusive sales process for its Silicones division in 2025, with a potential transaction expected to close in the first half of 2026.[37]Business Operations
Divisions and Segments
Elkem operates through three primary business divisions: Silicones, Silicon Products, and Carbon Solutions, each focusing on specialized materials essential for industrial applications. As of 2025, the Silicones division is under strategic review, with an exclusive sales process ongoing and expected to close in the first half of 2026, allowing focus on growth in Silicon Products and Carbon Solutions.[38] The Silicones division is a fully integrated producer of silicone-based specialty chemicals, serving diverse sectors including personal care, electronics, automotive manufacturing, construction, and healthcare.[39] The Silicon Products division specializes in silicon metal, ferrosilicon, and foundry alloys used primarily in steelmaking and aluminum production.[1] The Carbon Solutions division supplies electrode paste, carbon electrodes, and recarburizers to the ferroalloys, silicon, and aluminum industries, supporting pyrometallurgical processes.[40][41] In 2024, these divisions contributed to Elkem's total operating income of NOK 33,004 million, with Silicon Products generating the largest share at NOK 15,506 million, followed by Silicones at NOK 15,091 million, and Carbon Solutions at NOK 3,649 million.[42] This distribution underscores Silicon Products' dominant role in revenue generation, driven by demand in metallurgical applications, while the other divisions provide complementary high-margin contributions.[42] Inter-divisional synergies enhance operational efficiency, including the transfer of metallurgical silicon from Silicon Products to Silicones for further processing, and electrode paste from Carbon Solutions to Silicon Products facilities, priced based on external market rates.[33] A key synergy involves shared access to renewable energy sources, such as hydropower, which powers over 80% of production across all divisions in regions like Norway, Iceland, and Paraguay, supporting Elkem's sustainability goals and reducing the overall carbon footprint.[33] Strategic shifts within the divisions emphasize sustainability, particularly in Carbon Solutions, where Elkem has invested in biocarbon technologies to replace fossil carbon in smelting processes, achieving a 24% biocarbon share in silicon production in 2024 and targeting 50% by 2031 through projects like a pilot plant in Canada and NOK 397 million in research funding.[43][33] These initiatives align with broader efforts to lower emissions and enhance the division's role in green metallurgical solutions.[33]Global Manufacturing Sites
Elkem operates approximately 31 main production sites across more than 30 countries, enabling a diversified global footprint that supports its silicon-based materials production.[13] These facilities are strategically distributed to optimize regional value chains, with a focus on energy-efficient operations and proximity to key markets and resources. The company's manufacturing network is overseen by its three primary divisions—Silicon Products, Silicones, and Carbon Solutions—each managing sites aligned with their respective product focuses. In Europe, which serves as the core for silicon production, Elkem maintains a significant presence, particularly in Norway with major hubs such as Fiskaa in Kristiansand for silicon metal production, Thamshavn for metallurgical-grade silicon used in alloys and chemicals, and Rana for ferrosilicon and carbon capture initiatives.[13][44] Other Norwegian sites include Salten, Bremanger, Bjølvefossen, and Herøya, contributing to the division's 13 plants overall in the region.[44] Iceland hosts the Grundartangi facility in Akranes, a hydroelectric-powered plant producing ferrosilicon with an annual capacity supporting steel industry needs, leveraging abundant renewable energy sources.[13][45] Additional European sites include silicones production in France (Roussillon, Saint-Fons, and Salaise-sur-Sanne) and carbon facilities in Slovakia (Žiar nad Hronom).[13] Asia represents a growth area for carbon solutions and silicones, with extensive operations in China featuring sites like Xinghuo for integrated silicon and silicones production, alongside facilities in Shanghai, Zhongshan, Yongdeng, and Shizuishan, where recent expansions added 120 kilotons of annual siloxane capacity—a 50% increase.[13][46] India hosts plants in Nagpur and Pune for carbon and silicon products, while other Asian locations include South Korea (Gunsan) and Thailand.[13] In the Americas, the emphasis is on alloys and silicon production, with key sites in North America such as Chicoutimi in Canada for silicon operations and York in the USA for specialty silicones manufacturing.[13][47] South American facilities include Paraguay's Limpio plant for silicon and Brazil's Joinville and Serra sites for carbon solutions, the latter expanded in 2024 to boost capacity by up to 40%.[13][44] Africa contributes through the Emalahleni site in South Africa for carbon products.[48] Elkem's logistics and supply chain integration emphasize resilience, with bulk shipping for raw materials and regional hubs like the Netherlands distribution center facilitating efficient transport.[13] Critical raw materials such as quartz are sourced through owned mines in Norway (Tana) and Spain, processed sustainably and integrated into upstream production to minimize dependencies.[13] Long-term power contracts cover at least 80% of energy needs, supporting energy-intensive sites while promoting renewable integration.[13]| Region | Key Focus | Example Sites (Countries) | Notable Features |
|---|---|---|---|
| Europe | Core silicon production | Fiskaa, Thamshavn (Norway); Grundartangi (Iceland); Roussillon (France) | Renewable hydro power in Iceland; multiple silicon plants in Norway |
| Asia | Carbon solutions, silicones | Xinghuo, Shanghai (China); Nagpur (India) | 2024 capacity expansions in China for siloxanes |
| Americas | Alloys, silicon | Chicoutimi (Canada); Limpio (Paraguay); Serra (Brazil) | 40% capacity increase in Brazil carbon production |
| Africa | Carbon products | Emalahleni (South Africa) | Specialty carbon for ferroalloys |