Silicon-related operations
Its main products are silicon, solar-grade silicon, special ferrosilicon alloys for the foundry industry, carbon and microsilica. The company has production facilities in Europe, North America, South America, South Africa and Asia, and a comprehensive network of sales offices and agents in the main markets.
The silicon-related operations cover products for the solar industry, silicon, foundry products, microsilica and carbon. The company’s solar business consists of Elkem Solar. Elkem manufactures silicon at three smelting plants in Norway, while its foundry products are currently manufactured in Norway, Iceland, Canada and China. The microsilica business consists of the purchase and sale of materials that are mainly filtered from tapping fumes from smelting plants. In 2009, production for the carbon business took place in Kristiansand, Norway, at two plants in Brazil, at one plant in South Africa, and at one plant in China.
Energy
Orkla Materials’ power operations mainly consist of Elkem’s power plants at Sauda and Borregaard’s power plant in Sarpsborg, which produce a total of approximately 2.5 TWh. The business comprises power production, along with power delivery and trading on the Nordic power market.
Results for 2009
Elkem experienced a substantial fall in market prices for silicon-related products in the course of the year, which affected the majority of its main products. Moreover, sales volumes were significantly lower than in 2008. Consequently, capacity utilisation was considerably reduced in 2009, although it was adjusted upwards for certain segments towards the end of the year. Elkem Solar produced solar-grade silicon throughout the plant, but repairs necessitated by the fire delayed the ramp-up process.
As regards Orkla Materials Energy, Elkem’s results were somewhat stronger than in 2008. Lower production was more than offset by the higher prices realised on the volume sold, as a significant share of the volume was hedged at lower prices in 2008 than those achievable in 2009. The merger of Elkem Fornybar Energi with Norsk Grønnkraft AS generated an accounting contribution to profit of NOK 58 million.