OSLO, Norway—Looking to expand the reach of its specialty silicones segment, Norway-based Elkem will acquire a facility in Lyon, France, for production of organo-functional silicones.
Elkem said it has signed an agreement to purchase the facility, at a cost of "low double-digit million of Euros."
An Elkem spokesman said the firm couldn’t reveal the seller’s name because the sales agreement calls for confidentiality.
"With this acquisition, Elkem continues to deliver on our growth and specialization strategy," Michael Koenig, CEO of Elkem, said in a news release. "This new plant will enable us to more quickly extend our offerings within advanced high value products for attractive specialty markets, further strengthening our position as one of the world's leaders in fully integrated silicone manufacturing."
According to Elkem, the same silicone performance traits—flexible functionality and compatibility with other substrates—can be found in organo-functional silicones, a result of the specialized processing of the material.
"Elkem already has a broad global offering of advanced silicone solutions, ranging from commodities to specialties," Frederic Jacquin, senior vice president of Elkem Silicones, said in a statement. "It is a good example of how we position for the future, in a complex market environment."
Elkem, within the last year, has added Polysil and Basel Chemi to its portfolio.
"The acquisition of this new plant provides the technology and capacity to further accelerate our growth, particularly within release coatings, personal care and other specialty markets," Jacquin said.
The organo-functional silicones plant is located near Elkem's existing campus south of Lyon, including both the upstream plant in Roussillon as well as the production site and research and development center in Saint-Fons.
"This acquisition reinforces Elkem's solid footprint in France," Bertrand Mollet, regional director with Elkem, said in a statement. "The new production capacity is in line with our strong commitment to support our development in the Auvergne-Rhône-Alpes region."
Elkem has 31 factories in Europe, North America, South America, Africa and Asia.