Elkem

M&A Activity • Jun 9, 2023

Elkem acquires VUM to further expand customer offering in Carbon Solutions

Elkem acquires VUM to further expand customer offering in Carbon Solutions

Elkem ASA has acquired VUM, a Slovak producer of carbon materials. The

transaction will further increase Elkem's capacity and competence in attractive

specialty markets and increase its flexibility in the supply chain. Elkem

expects the acquisition to contribute with an additional turnover of around NOK

360 million per year.

VUM was founded in 1954 and currently has around 65 employees at a plant located

near the town of Ziar nad Hronom in the centre of Slovakia. The company is an

independent producer of carbon-based materials for industrial smelters,

including anode paste, electrode paste and ramming paste as well as

recarburisers. These are important materials to support the production of metals

that the world needs.

"With the acquisition of VUM, Elkem continues to deliver on its strategy of

growth and specialisation. This transaction gives Elkem improved access to

central and eastern European markets. We look forward to working with our new

colleagues in Slovakia and to further improve our joint value offering to our

customers. Elkem also aims to realise synergies from optimising our value chain

and utilising existing production capacity to serve other attractive export

markets," says Luiz Simao, Elkem's senior vice president for Carbon Solutions.

VUM has a calcining technology based on rotary kilns furnaces which adds

flexibility to handle different raw materials. Research and development work by

VUM will also add competence and knowledge to Elkem's competence center for

carbon in Norway. Slovakia's electricity generation is mainly emissions-free,

with nuclear and hydropower as the country's two largest power sources.

Elkem will provide VUM with resources and best-in-class industry expertise to

improve efficiency, value offering and economies of scale. The combination of

being both a producer and consumer of carbon solutions gives Elkem a strong

position with high quality products and superior technical support for improving

electrode management and processes at customer operations.

"Elkem has had a leading role as technology provider and supplier of specialty

carbon products to the pyro-metallurgical industry since the invention of the

Søderberg electrode in 1919. We aim to be an industry leader and we are

constantly developing our offering to be best suited for our partners and

customers, as demonstrated by this transaction. We are committed to growing and

expanding our business in a sustainable and environmentally friendly way," says

Simao.

With the transaction complete, VUM will rebrand and operate under Elkem Carbon

AS, a wholly-owned subsidiary of Elkem ASA. VUM will continue the operations

under its current management.

For further information, please contact:

Odd-Geir Lyngstad

VP Finance & Investor Relations

Tel: +47 976 72 806

Email: odd-geir.lyngstad@elkem.com

Fredrik Norman

VP Corporate Communications & Public Affairs

Tel: +47 918 66 567

Email: fredrik.norman@elkem.com

About Elkem

Elkem is one of the world's leading providers of advanced silicon-based

materials 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

7,300 people has a joint commitment to stakeholders: Delivering your potential.

In 2022, Elkem achieved an operating income of NOK 45.9 billion and CDP ratings

of A- on climate and forest. Elkem is listed on the Oslo Stock Exchange (ticker:

ELK), where the company is also included in the ESG Index. www.elkem.com