Elkem announces €35m expansion at French silicones plant

Oslo – Elkem ASA’s board has approved a NOK350 million (€36 million) investment at its silicone upstream plant in Roussillon, France, the Norwegian materials supplier has announced.

Set for completion in the third quarter of 2023, the project will address ‘a structural deficit of upstream siloxanes’ across Europe, Middle East and Africa (EMEA), said Elkem in a statement 27 Oct.

The project is designed to increase production capacity for silicone intermediates at the plant by 20 kilotonnes per annum (ktpa) to 100ktpa, said Elkem in its third quarter results.

The investment will improve cost position and environmental performance through debottlenecking, better energy efficiency and upgraded wastewater treatment, it added.

Elkem said the project will further develop and expand its speciality business in EMEA and Americas, where it expects respective growths of 6.5% and 5.9% through to 2025.

““This investment complements the ongoing capacity expansion at our Xinghuo site in China, which primarily serves growth in the Asia-Pacific region," said Frédéric Jacquin, SVP in charge of Elkem’s Silicones division.

The investment plan includes installing new equipment and major technology upgrades in key parts of the plant to provide higher materials efficiency, more energy efficient processes, reduced waste, and water effluents treatment.

It is the largest organic investment project in Elkem’s European silicones franchise in a decade. 

Elkem said the decision confirms the strategic importance of the Rhône Valley for its silicones division, after the company announced an agreement to acquire a third manufacturing site in the area, and the opening of a new global research & innovation centre over the past few months. 

According to Elkem’s website, the Roussillon site, 50km south of Lyon, converts silicon metal into chlorosilanes, vinyl chlorosilanes and siloxanes. 

The products are the key components for the company’s downstream silicones production in Saint-Fons and elsewhere in Europe.