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Elkem poised to assist nation's green and innovation-led growth

By YUAN SHENGGAO | China Daily | Updated: 2023-11-15 09:44
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Visitors gather at Elkem ASA's booth during the third China International Import Expo. [Photo provided to China Daily]

With China entering a new era of green and innovation-led growth, Elkem, a Norway-based integrated silicone manufacturer, will bring more innovative products and solutions to its clients and consumers in the country, said a senior executive.

From the company's booth at the sixth China International Import Expo in Shanghai from Nov 5 to 10, Zhang Lijun, senior vice-president of Elkem, emphasized its commitment to providing reliable and high-quality silicone solutions to the Chinese market.

Zhang Lijun, senior vice-president of Elkem. [Photo provided to China Daily]

"We will invest more in the country and expand our production capacity to provide advanced silicone technologies and products to customers in China and other parts of the Asia-Pacific region, in line with our dual-growth strategy," said Zhang. He added that this is how Elkem is working with players in various industries to accelerate green and low-carbon transformation and build a zero-carbon future.

The Oslo Stock Exchange-listed company continues to invest in new capacity and products in China, with a batch of new capacities and products set to come into operation in its plants in places such as Shanghai and Jiangxi province in the first half of 2024.

In response to surging market demand in China, Elkem has recently inaugurated the production of its high-end electronic adhesive line for silicone at its Shanghai plant. This facility is dedicated to manufacturing high-end products within its thermal conductivity series.

Highlighting that these new investments aim to provide advanced silicone products for customers in China and other countries, such as signatory countries of the Regional Comprehensive Economic Partnership Agreement and the economies of the Belt and Road Initiative, Zhang said that Elkem, also an international arm of China's Sinochem Holdings, will increase investments in high-tech products to support China's industrial upgrade and green transformation.

Leveraging the strength of 14 innovation centers and 14 manufacturing bases worldwide, Elkem is set to inaugurate its Asia-Pacific flagship research and development center in Shanghai in January by investing 100 million yuan ($13.72 million). The objective is to deliver superior materials and elevate service quality for Chinese customers.

"Looking ahead, our plans include investment in a second R&D center in China," he said. "This strategic move involves directing supplementary R&D resources to craft personalized, high-quality products and solutions not only for customers in China but on a global scale."

With a diversified product portfolio and well-developed market distribution network, Elkem reveals more than 100 specialized new products across various application fields on an annual basis. These include technologies and solutions for medical implants, personal care and consumer products, construction, new energy and 3D printing, as well as next-generation electronics and new energy vehicles.

Given that Elkem has consistently adhered to the dual-growth and green leadership strategies, Zhang stressed that the dual-growth strategy signifies the company's commitment to achieving a well-balanced geographical distribution and value chain, with the goal of realizing annual business growth exceeding 5 percent and maintaining an EBITDA (earnings before interest, taxes, depreciation and amortization) margin of at least 15 percent each year.

On the other hand, the green leadership strategy reflects its aspiration to lead the industry in energy conservation and emission reduction. Elkem aims to achieve net-zero emissions and focus business growth on markets crucial for green transformation by the year 2050.

As China's manufacturing, chemical and consumer goods industries continue to grow and expand, demand for high-end silicone will rise, said Sun Fuquan, vice-president of the Beijing-based Chinese Academy of Science and Technology for Development.

He predicted that high-end new material, electronics, green energy, chemicals, automotive and other manufacturing fields will be key fields for foreign investors to develop in China in the coming years, as the country presses ahead with its pursuit of high-quality growth.

The latest data from the Ministry of Commerce show these facts are effective in drawing foreign investors to China. Foreign direct investment used in the manufacturing sector in the first three quarters amounted to 262.41 billion yuan ($36.01 billion), up 2.4 percent year-on-year, with FDI in high-tech manufacturing up 12.8 percent.

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