March 13, 2026 13:09

Elkem has announced an internal reorganisation and a cost-cutting programme ahead of the disposal of its silicones activities to China’s Bluestar, in exchange for Bluestar’s exit from the Norwegian company’s shareholder base.

In return for the majority of the Silicones division, Bluestar will cancel all the shares it holds in Elkem, corresponding to 52.9% of the share capital and valued at more than $1 billion. Closing is therefore expected to take place without any cash payment between the parties between late April and early May 2026.

Elkem said Bluestar, as the company’s largest shareholder and former owner of parts of the Silicones assets, has deep knowledge of the division and is strategically focused on expanding its position in the silicones value chain.

Once the transaction is completed, the Norwegian company will retain the Yongdeng plant in China for silicon metal, Roussillon in France for upstream silicones, and Chakan in India for downstream silicones. For the French site, Elkem has entered into a five-year silicones supply agreement with Bluestar.

Following the divestment, announced in February and still subject to regulatory approvals, the corporate structure will be reorganised into three divisions focused on metals and materials: Elkem Silicon (silicon, ferrosilicon, quartz), Elkem Foundry Alloys (foundry alloys) and Elkem Carbon (electrode paste and other carbon-based products).

The cost-control and business simplification plan will result in the loss of 300 jobs by the end of 2026, equivalent to around 10% of total employment after the sale of the majority of the Silicones division. The company expects to reduce salary and operating costs by NOK600 million (around €53 million), with about half of the savings to be achieved by the end of 2026.

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