Investment plan

Elkem announces strategic investment plan to unlock new supply of specialty silicones

Elkem, a global leader in advanced silicon-based materials, today announces a strategic investment plan to unlock new supplies of specialty silicones for customers in Europe, the Middle East and Africa (EMEA) and of the Americas.

The company will invest more than $ 40 million to modernize and decongest its upstream silicone plant in Roussillon, France.

The Board of Directors approved a capacity expansion of 20,000 metric tonnes, bringing the effective capacity of silicone intermediates at the Elkem plant upstream in Roussillon to 100,000 metric tonnes per year, while improving productivity, costs, sustainability and climate protection.

“At a time when silicones and their raw materials are in short supply, expansion is the cornerstone to meet the future needs of our specialty silicone customers in the EMEA region and the Americas, where the market is expected to grow by approximately 6% per year between 2020 and 2025 ”, declared Frédéric Jacquin, senior vice-president of the Silicones division of Elkem. “This investment complements the continued expansion of capacity at our Xinghuo site in China, which primarily serves growth in the Asia-Pacific region and further strengthens our cost position as well as our environmental performance. “

Specialty silicones bring unique properties and performance to a wide range of cutting-edge and sustainability-aligned markets – from electric and hybrid vehicles to semiconductors, carbon-free energy, 3D printing, healthcare and medical devices, aerospace , defense or sustainable buildings.

The investment plan includes the installation of new equipment and major technological upgrades in key parts of the plant in order to improve the cost position and environmental performance of Elkem Roussillon, through improved plant efficiency. materials, more energy-efficient processes, reduced waste and state-of-the-art aqueous effluents. processing. This is the largest organic investment project in Elkem’s European silicone franchise in a decade. It is expected to go live in the third quarter of 2023.

This decision confirms the strategic importance of the Rhône Valley for Elkem’s silicone division, after the company announced an agreement to acquire a third manufacturing site in the region and to open a new one. global research and innovation center in recent months.

It also underlines Elkem’s commitment to the Roussillon chemical platform, which is undergoing significant transformations to protect its competitiveness and decarbonize its operations, thanks to dynamic partnerships between industrial and local players – including Elkem.

Elkem’s commitment to sustainability

Sustainable development is at the heart of Elkem’s business strategy. Its mission is to provide advanced hardware solutions to shape a better and more sustainable future, adding value to its stakeholders globally.

Elkem defines sustainability work as continuous efforts to maximize its positive impact on the environment and the societies around us, as well as to minimize any negative impact.

In 2020, Elkem received the Gold rating from Ecovadis and was ranked by CDP in the Climate A List.

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