Elkem Announces Production Expansion to Meet Growing Demand for Specialty Silicones in EMEA and Americas

On October 27, 2021, Elkem, a global leader in silicon-based advanced materials, announced a strategic investment plan to address new specialty silicone needs from customers in Europe, Middle East Africa (EMEA), and the Americas
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The company will invest around EUR 36 million (NOK 350 million) to upgrade its upstream silicone plant in Roussillon, France and remove bottlenecks in its production
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The board of directors has approved a 20,000-ton capacity expansion, bringing Elkem's upstream plant in Roussillon, France, to 100,000 tons of effective capacity per year for silicone intermediates, increasing capacity while improving cost, sustainability and climate protection performance
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“At a time when silicones and their raw materials are in short supply, expansion is a cornerstone to meet the future needs of our specialty silicone customers in EMEA and the Americas, a market that is expected to grow by 6% annually from 2020 to 2025,” said Frédéric Jacquin, senior vice president in charge of Elkem's silicones division
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"This investment complements our ongoing capacity expansion at our Xinghuo plant in China, which primarily serves growth in the Asia-Pacific region, and further strengthens our cost advantage and environmental performance
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Specialty silicones bring unique properties and performance to a multitude of cutting-edge and sustainable markets - from pure electric and hybrid vehicles to semiconductors, decarbonized energy, 3D printing, healthcare and medical devices, aerospace, defense or renewable energy Continued construction,
etc.

The investment plan includes the installation of new equipment and major technological upgrades in key parts of the plant to improve the cost advantages and the environment of the Elkem Roussillon plant through higher material utilization efficiency, more energy-efficient processes, waste reduction and state-of-the-art wastewater treatment performance
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This is the largest organic investment in Elkem's European silicone franchise in a decade, and the investment is expected to be operational in the third quarter of 2023
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The investment decision illustrates the strategic importance of the Rhone Valley region in Elkem's silicones sector, following Elkem's announcement that it had agreed to acquire a third production site in the region and opened a new global research facility in the past few months.
and innovation center
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It also underscores Elkem's commitment to the Roussillon chemical platform, which is undergoing a landmark transformation to sustain its competition thanks to dynamic partnerships between industry and local stakeholders, including Elkem power and decarbonize operations
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