Elkem Restructures and Cuts Costs to Boost Competitiveness
- Elkem's restructuring includes three divisions: Silicon, Foundry Alloys, and Carbon.
- Cost reductions total NOK 1.9 billion, with NOK 1.3 billion in working capital and NOK 0.6 billion in annual savings.
- The workforce will be reduced by 300 FTEs by year-end 2026.
- Elkem's EBITDA for Q4 2025 was NOK 485 million, down from NOK 800 million in Q4 2024.
Corporate Restructuring
Elkem is implementing a new corporate structure following the sale of its Silicones division to Bluestar. The company will now operate through three divisions: Elkem Silicon, Elkem Foundry Alloys, and Elkem Carbon. Each division will focus on specific product lines and geographical production sites.
Cost Reduction Measures
To enhance profitability, Elkem is targeting cost reductions totaling NOK 1.9 billion. This includes NOK 1.3 billion in working capital and capital expenditure improvements, and NOK 0.6 billion in annual savings. The company plans to achieve approximately half of these savings by the end of 2026.
Workforce Reduction
Elkem will reduce its global workforce by about 300 full-time equivalents (FTEs) by the end of 2026. This reduction represents around 10% of the workforce after the Silicones division sale and will primarily affect roles impacted by the sale and support functions.
Market Challenges
Elkem continues to face challenging market conditions, with pricing pressures and weak demand. The company's EBITDA for the fourth quarter of 2025 was NOK 485 million, a decrease from NOK 800 million in the same quarter of 2024. The conflict in the Middle East and declining power prices in Northern Norway have further impacted the company's operations and financial outlook.
Source: Elkem