Elkem buys silicones plant in France

Elkem has signed an agreement to acquire a brand-new plant near Lyon in France, custom-designed for producing highly specialised organo-functional silicones (OFS). The acquisition underpins Elkem’s strategy of growth and specialisation. The purchase price is in the low double-digit millions of euros, and production is expected by the end of the year.

With the acquisition, Elkem continues to deliver on its growth and specialisation strategy, according to Michael Koenig, CEO of Elkem. The new plant will enable Elkem to more quickly extend its offerings within advanced high value products for attractive specialty markets, further strengthening its position as one of the world’s leaders in fully integrated silicone manufacturing, Mr. Koenig stressed.

Organo-functional silicones combine the superior performance of silicones with the functionality, compatibility and potential reactivity of organic materials. The processing is advanced and gives OFS products with highly specialised properties.

Elkem already has a broad global offering of advanced silicone solutions, ranging from commodities to specialties. The company has recently complemented its portfolio of specialties with the acquisitions of Polysil and Basel Chemie. The acquisition of the new OFS plant provides the technology and capacity to further accelerate its growth, particularly within release coatings, personal care and other specialty markets, according to Frederic Jacquin, SVP Elkem Silicones.

The OFS plant is located near Elkem Silicones’ existing activities south of Lyon, including both the upstream plant in Roussillon as well as the production site and R&D centre in Saint-Fons.