Elkem was hit hard by the corona crisis last year, but now profits are rising again. The company is investing billions of dollars to build a performance factory in China.
-Elkem CEO Michael Koenig told E24 after introducing the results of the first quarter of this year, we have seen high demand in various industries.
Elkem is one of the companies that have been affected by the economic recession due to the corona virus, especially in the automotive industry, which is an important customer of industrial companies.
Elkem now reports a strong market and higher sales prices. In March, the company announced Price increased Silicone products sold worldwide.
-Koenig said that the automotive industry is developing well on a global scale, construction is progressing smoothly, and personal care is progressing smoothly because end customers have demand.
Elkem is a large-scale producer of silicon and also produces various forms of silicon for various industrial uses. The product is used in cosmetics, energy, aviation, automobile industry, construction industry and healthcare system. Products can be various forms of coatings, sealants and adhesives.
Elkem shares fell nearly 9% on the Oslo Stock Exchange on Tuesday after the company Raised 1.9 billion Norwegian kroner through the issuance of shares for a major investment in China.
according to International Monetary Fund (IMF) After the economic downturn, most industries in the world have recovered rapidly, mainly due to the automotive industry.
The International Monetary Fund recently pointed out that after recovering from a 40% drop in corona last year, global car sales returned to pre-pandemic levels in December last year.
Koenig said that in the automotive industry, the markets in China and the US are particularly strong. He also pointed out that the transition to more electric vehicles is increasing the demand for silicone products.
He said that we have seen a lot of money and investment flow to the goods we deliver to the automotive and construction industries.
Elkem’s boss also pointed out that during the pandemic, consumption has shifted to tangible goods.
-I think part of the reason is that consumers spend their money in these areas because there are far fewer opportunities to spend money in many other areas.
-The authorities’ stimulus package has also promoted many things, especially in China, but also in the United States and Europe. Koenig said that the authorities have adopted various measures to stimulate investment in commodities containing a large amount of silicone.