Elkem

Elkem AS

Type	Subsidiary
Industry	Metal
Founded	1904
Headquarters	Oslo, Norway
Key people	Helge Aasen (CEO)
Products	Aluminum and Silicon
Revenue	NOK 9,128 million (2005)
Operating income	NOK 1,154 million (2005)
Employees	3,056 (2006)
Parent	Orkla
Website	http://www.elkem.com

Elkem is one of Norway's largest industrial companies, and one of the world's leading suppliers of metals and materials. The company's main products are aluminium, energy and silicon as well as specialised products such as ferrosilicon to foundries, microsilica and carbon. Elkem is part of Orkla Group and has its headquarters in Oslo, Norway.

January 11th 2011 it was confirmed that the company China National Bluestar Group Co. Ltd. (Bluestar) had bought the company for 2 billion USD. The deal excludes 85 percent of the sister company Elkem Energi AS.

The company serves the construction, transport, engineering, packaging, aluminium, chemical and electronic industries. Elkem has 40 factories in Europe, North America, South America and Asia in addition to several hydroelectric power plants.

History

Elkem was founded in 1904 by Sam Eyde with the intention of development of furnaces and processes for electro metals. In 1917 a ferroalloy plant was acquired and Elkem starts production of the Søderberg electrode.

Throughout the 1960s and beyond Elkem expanded, primarily in Norway within aluminium, mining and finished products. In 1972 the company merged with Christiania Spigerverk and continued with an international expansion within ferroalloys and steel. In 1981-84 Elkem acquired Union Carbides plants in Norway and North America and in 1986 it acquires the plants at Thamshavn and Bjølvefossen. In the 2000s Elkem had acquired Icelandic Alloy, Remi Claeys Aluminium and Sapa (company).

Between 2002 and 2005 there was an acquisition war between the US aluminium corporation Alcoa and Orkla. At the peak Alcoa owned 40% of Elkem, but Orkla succeeded at purchasing the majority of the shares and in 2005 Orkla acquired all the shares of Elkem and Elkem becomes part of Orkla Group.

In January 2011 Orkla ASA signed a binding agreement with China National Bluestar (Group) to sell Elkem, including Elkem Silicon Materials, Elkem Foundry Products, Elkem Carbon and Elkem Solar for a sales price of USD 2 billion. ^[1]

Operations

Aluminium

In March 2009, Alcoa and Orkla ASA exchanged respective stakes in the Sapa AB and Elkem Aluminium ANS companies. Alcoa now owns 100% of the Lista and Mosjøen smelters in Norway. Before 2009, these smelters where Elkems production of aluminium (operated through a partnership with Elkem Aluminium ANS and Alcoa)^[2].

Carbon

The 1919 invention of the Søderberg electrode was Elkems entry into the carbon industry. Today Elkem produces 310,000 tonnes of carbon with the ferroalloy industry as its customers. Elkem is the world's largest producer of carbon electrode paste. There are production plants at Kristiansand (Norway), Shizuishan City (China), Witbank (South Africa), Keokuk (USA) and Vitória (Brazil).

Energy

Elkem owns a number of hydroelectric power plants in both Norway and North America. The company has a total consumption of 8 TWh per year in Norway and an annual production of 3 TWh. The group has hydroelectrics power plants in Bremanger (Norway), Sauda (Norway), Salten (Norway), Hawks Nest (USA), Glenn Ferris (USA) and Chicoutimi (Canada).

Foundry products

The foundry production is served at four plants, at Bjølvefossen (Norway), Bremanger (Norway), Chicoutimi (Quebec, Canada) and at Icelandic Alloys on Iceland.

Microsilica

Elkem is the world's largest producer of microsilica, with an annual production of 130,000 tonnes.

Silicon

Elkem has silicon plants at Bremanger, Meråker, Salten and Thamshavn, all in Norway. 63% of the companies revenue is silicon-based and produces 207,000 tonnes per year.

See also

• Elkem Thamshavn

References

1. ^ Orkla sells Elkem to China National Bluestar www.wallstreet-online.de
2. ^ http://www.alcoa.com/global/en/investment/pdfs/2010_Annual_Report.pdf

External links

• Official site