Elkem delivers strong results in a difficult market

Oslo, 28 April 2017: 2016 was a strong financial year for Elkem despite of challenging market conditions.
The financial results for Elkem are strong despite a reduction in market prices by about 20-30 per cent for some of its main products. Elkem’s focus on specialty products and continuous improvement has yielded a higher growth. The company has been more resilient to fluctuations in the global commodity market than before, and able to create more value to customers.

-As a result of lower prices, the margins have been reduced but we have compensated by cost reductions, increased volumes and focus on speciality products, says CFO Morten Viga.

Elkem had a continued focus on growth in 2016, acquiring two new plants, the iron foundry business of Minex Metallurgical Co. Ltd. and Fesil Rana Metall AS in Norway.  The company has also commenced production at a new carbon plant in Malaysia and is constructing a new ferrosilicon plant in Paraguay, as well as increasing the capacity of a foundry plant in China. Elkem is currently also planning an upgrade of the plant in Bremanger.

-We want to keep investing in our Norwegian plants to ensure cost improvements and increased capacity. The other dimension is international growth, investing in new projects and companies, primarily in Asia, says CFO Morten Viga.

Key figures for Elkem can be found here.
You can download the annual report for 2016 here.

 

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