Elkem reshuffles with Silicones sale

Norwegian industrial group Elkem has agreed to sell most of its Silicones division to Bluestar, its largest shareholder and former owner of parts of the Silicones assets. The deal should close by May subject to regulatory approval and other closing conditions, at which point Bluestar will no longer hold any Elkem shares.

Elkem is retaining Yongdeng (silicon metal in China), Chakan (downstream silicones in India) Roussillon (upstream silicones in France). For the latter, it has entered into a five-year supply agreement to the downstream business to be acquired by Bluestar and another, unnamed third party. It is exploring strategic alternatives for the other two.

The company said that this “represents a significant milestone in streamlining Elkem into a focused, pure play metals and materials company”, with three divisions of Silicon Products, Carbon Solutions and Other. It will be able to reallocate capital to these segments and be “better suited to pursue value-accretive expansion opportunities”, it was stated.

Elkem intends to carry out debt refinancing in connection with the transaction. Four investors have underwritten a gross total of €133 million in new equity capital. This is expected to strengthen the balance sheet and improve its general financial position in combination with andenhanced cash generation capacity.

In Q4 2025, Elkem separately reported, its EBITDA was €78.9 million, 24% down from Q4 2024. This was largely because the Silicon Products division was impacted by low silicon and ferrosilicon prices in the EU. The division’s operating income was 14% down on Q4 2025 at €286.6 million and its EBITDA was 53% down. 

Carbon Solutions saw its EBITDA down 38% year-on-year at €15.4 million. By contrast, the business being sold, Silicones, recorded higher results due to higher sales prices and strong cost improvements. Its EBITDA was 6% up at €35.4 million despite a 14% fall in operating income. 

Elkem has also temporarily halted production at two facilities in Norway, due to a weak market, high inventory levels and high electricity prices. Three furnaces in Salten, which mainly manufactures silicon used in ceramics, batteries and aluminum alloys, and two in Rana, which produces ferrosilicon, have been shut down.