Elkem expands production capacity for carbon solutions in Brazil

01 Feb 2023 07:30 CET

Elkem has decided to invest around NOK 200 million to increase its production
capacity in Brazil for pitch, a raw material for electrode paste to industrial
smelters.

The investment is based on well-known technology and constitutes an expansion of
a running Elkem facility, thereby further improving productivity and
profitability. The increased production of high-quality products will be
supplied to a major customer on a long-term contract. Elkem will also have
options to sell additional supply to others. The investment will increase the
production capacity by up to 40 per cent from 2024, and is expected to generate
additional annual sales in excess of NOK 300 million.

"This investment is an example of how Elkem is committed to delivering the
potential of our customers. In a situation where demand is higher than supply,
we are stepping up our production capacity. Elkem's unique position, both as
producer and user of electrode paste and raw materials, has enabled us to define
the standard for electrode paste performance and optimal electrode operation.
For many years, our customers have benefited from our long tradition of
technology development, and we are delighted that they continue to do so," says
Elkem's senior vice president for Carbon Solutions, Luiz Simão.

Pitch is produced based on byproducts from the steel industry. It is both a raw
material in Elkem's electrode paste production and an end-product that is sold
in the external market, mainly to the aluminium industry. Carbon solutions
support the production of the metals that the world needs.

The investment will expand the Elkem Carboderivados plant established in Brazil
in 1987, contributing to secure local jobs and ripple effects in greater
Vitoria, State of Espirito Santo. The flexible production setup of the facility
allows it to meet the market needs quickly and deliver tailor-made products to
its customers. The plant also has an integrated management system for quality,
safety and environment. Brazil largely relies on hydropower for its electricity
generation.

For further information, please contact:

Fredrik Norman
VP Corporate Communications and Public Affairs
Tel: +47 918 66 567
Email: fredrik.norman@elkem.com

Odd-Geir Lyngstad
VP Finance and Investor Relations
Tel: +47 976 72 806
Email: odd-geir.lyngstad@elkem.com

About Elkem
Elkem is one of the world's leading providers of advanced material solutions
shaping a better and more sustainable future. The company develops silicones,
silicon products and carbon solutions by combining natural raw materials,
renewable energy and human ingenuity. Elkem helps its customers create and
improve essential innovations like electric mobility, digital communications,
health and personal care as well as smarter and more sustainable cities. With a
strong track record since 1904, its global team of more than 7,000 people has a
joint commitment to stakeholders: Delivering your potential. In 2022, Elkem
obtained a Platinum score from EcoVadis, which rated the company among the
world's top 1% on sustainability transparency, and the company achieved an
operating income of NOK 33.7 billion. Elkem is listed on the Oslo Stock Exchange
(ticker: ELK). www.elkem.com

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