Breaking News: Elkem Makes Waves with Acquisition of VUM

Elkem, being a major player in the silicon industry, anticipates that the acquisition will generate an estimated annual increase in turnover of approximately NOK 360 Mn: Ken Research

STORY OUTLINE

Elkem ASA, headquartered in Oslo, Norway, has acquired VUM, a carbon materials producer based in Slovakia.
The acquisition aims to enhance Elkem’s capabilities in specialty markets and provide greater flexibility in the supply chain.
Elkem’s operations are divided into three business divisions: silicon, silicon products, and Carbon Solutions.
VUM, now known as Elkem Carbon AS, will operate as a wholly-owned subsidiary of Elkem ASA with its existing management.

Elkem ASA, a Norwegian company with its headquarters in Oslo, has successfully finalized the acquisition of VUM, a carbon materials producer located in Slovakia. This strategic transaction is intended to fortify Elkem’s competencies and proficiency in highly profitable specialty markets, while simultaneously enhancing the company’s supply chain flexibility.

Future Growth Rate of the Global Silicon Metal Market

By expanding its capacity through the acquisition, Elkem aims to strengthen its market position within the industry. Elkem’s operations are organized into three distinct business divisions, namely silicon, silicon products, and Carbon Solutions. In 2022, Elkem achieved a peak revenue of $1.8 Bn.
VUM, established in 1954 near Ziar nad Hronom, Slovakia, employs around 65 people. It is an independent producer of carbon materials crucial for industrial smelters, including anode paste, electrode paste, ramming paste, and recarburisers, supporting global metal production.
Elkem aims to enhance efficiency, value proposition, and economies of scale for VUM by offering resources and industry-leading expertise. As both a producer and consumer of carbon solutions, Elkem leverages its strong position to provide superior technical support and high-quality products, enabling customers to enhance electrode management and optimize their processes.

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VUM utilizes rotary kilns furnaces for calcining, enabling versatile processing of various raw materials. Additionally, VUM’s research and development efforts will contribute to Elkem’s carbon competence center in Norway, enriching its expertise. Slovakia relies predominantly on emissions-free electricity generation, primarily through nuclear and hydropower, serving as the country’s primary energy sources.

Following the successful transaction, VUM will undergo a rebranding process and function as Elkem Carbon AS, a fully-owned subsidiary of Elkem ASA. VUM’s existing management will continue to oversee operations under the new name.

In conclusion, Elkem’s acquisition of VUM, now Elkem Carbon AS, enhances its position in the carbon materials industry and reinforces its capabilities in specialty markets. This strategic move strengthens Elkem’s supply chain flexibility and allows for greater efficiency and value proposition. With its expertise, resources, and technical support, Elkem is well-equipped to meet the evolving needs of customers in the global metal production and industrial smelting sectors.

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