Elkem silicones division sale to refocus capital on core silicon and carbon

Elkem

The Elkem silicones division sale marks a major portfolio shift for the Norwegian materials producer. Elkem has entered an exclusive process with a major industrial buyer to complete the Elkem silicones division sale by the first half of 2026. As a result, the Elkem silicones division sale will free capital for its silicon products and carbon solutions businesses.

Elkem launched a strategic review of its silicones business in January. The review considered multiple options, but the company concluded that a clean exit best aligns with its long term strategy. The buyer remains unnamed, but Elkem describes it as a significant player in the global chemicals industry. Therefore, silicones will move into a more specialised chemicals platform, while Elkem doubles down on upstream silicon materials.

Importantly, Elkem is selling a business that is currently improving, not struggling. The silicones division generated NKr3.87bn in income in April–June 2025. Ebitda rose to NKr247mn from NKr45mn a year earlier. This rebound reflects higher volumes, lower raw material costs and better operational efficiency. However, Elkem still sees stronger returns by concentrating resources in fewer, more focused segments.

Elkem silicones division sale reshapes its growth and investment profile

The Elkem silicones division sale will streamline Elkem into two core divisions. These are silicon products and carbon solutions. Silicon products cover metallurgical silicon, ferrosilicon and advanced silicon-based materials. Carbon solutions supply electrodes and carbon products into metals and energy markets. Together, they define Elkem’s identity as a technology driven, upstream materials company.

By exiting silicones, Elkem reduces exposure to more fragmented specialty chemicals markets. It also gains flexibility to invest in decarbonisation, energy efficiency and higher value silicon applications. Meanwhile, the buyer can integrate the silicones division into a broader chemicals portfolio with different synergies. As a result, both parties may unlock value that Elkem could not fully realise alone.

The timing also reflects changing capital discipline in European materials groups. Investors increasingly favour focused balance sheets and clear growth themes. A successful Elkem silicones division sale could therefore improve Elkem’s valuation metrics and visibility. It may also release funds for selective mergers, technology investments or capacity expansions within core segments.

The Metalnomist Commentary

Elkem’s move underlines a broader trend: diversified materials groups are pruning downstream units to concentrate on advantaged upstream platforms. Selling a recovering silicones business suggests confidence in the earnings power of silicon and carbon, especially under energy transition demand. Market participants should watch sale proceeds, reinvestment plans and any follow up deals as signals of how far Elkem will push this refocus.