Elkem: Acquisition of new OFS plant in France
Elkem has signed an agreement to buy a brand-new plant near Lyon, France, custom-designed for producing highly specialised organo-functional silicones (OFS). The purchase price is in the low double-digit millions of euros, and start of production is expected by the end of 2021.
“With this acquisition, Elkem continues to deliver on our growth and specialisation strategy. 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," said Michael Koenig, CEO of Elkem.
According to Elkem, organo-functional silicones combine the 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 specialities. We have recently complemented our portfolio of specialities with the acquisitions of Polysil and Basel Chemie. The acquisition of this new OFS plant provides the technology and capacity to further accelerate our growth, particularly within release coatings, personal care and other speciality markets. It is a good example of how we position for the future, in a complex market environment”, said 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. “This acquisition reinforces Elkem’s solid footprint in France. The new production capacity is in line with our strong commitment to support our development in the Auvergne-Rhône-Alpes region,” said Bertrand Mollet, EMEA Region Director Elkem Silicones.