Elkem buys French silicone production facility, strengthens position in market

OSLO, Norway—Elkem S.A.S. is adding muscle to its specialty silicones business and strengthening its position in the market. The company announced that it has finalized the acquisition of a new silicones manufacturing plant in Salaise-sur-Sanne, France.

Elkem acquired the new unit from Thor, a producer and supplier of specialty biocides, flame retardants and personal care ingredients, said the Norwegian materials supplier in a Nov. 23 statement. This acquisition, the company said, is part of its move to strengthen its specialty silicones business.

In February, Elkem said it signed the agreement to purchase the facility at a cost of "low double-digit million of Euros."

The site manufactures "high-quality" organo-functional silicones for specialty applications used in markets including personal care and release coatings.

Organo-functional silicones are typically used as additives at low levels in formulations to enhance performances and bring efficiencies in multiple applications.

Due to their low dosage and high performance, they reduce the environmental impact of production.

"This new facility helps strengthen Elkem's position in key, high-value specialty markets by bringing new manufacturing capabilities and additional capacity," said Frederic Jacquin, SVP in charge of Elkem's silicones division.

Elkem said it had run production trials at the plant for the past several months to ensure that the factory's manufacturing equipment is "fit-for-purpose and in good working condition."

The company said it also worked closely with the local administration to obtain appropriate administrative permits aligned with Elkem's planned activities.

The new plant is located in the area south of Lyon, near Elkem Silicones' existing facilities in France.

Elkem operates an upstream facility in Roussillon in southern France and its main European downstream production site is located in Saint-Fons, near Lyon.

The company also has recently opened a new global research and innovation center in Saint-Fons.

"The acquisition confirms the strategic importance of the Rhone Valley for Elkem's silicones innovation and supply chains," said Laurent Dumont, general manager of Elkem Silicones France.

Elkem operates 31 factories in North America, South America, Europe, Africa and Asia.