Elkem

Environmental & Social Information • Feb 1, 2023

Elkem expands production capacity for carbon solutions in Brazil

Elkem expands production capacity for carbon solutions in Brazil

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