Elkem acquires VUM to further expand customer
offering in Carbon Solutions.
Norway: On June 10th,
2023, Elkem ASA 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 to an additional turnover of around USD
33.42 million per year.
VUM is a privately held
company headquartered in Slovakia, Europe. The company is an independent
producer of carbon-based materials for industrial smelters, including anode
paste, electrode paste, and ramming paste as well as decarburizes. These are
important materials to support the production of metals. Elkem's acquisition of
VUM will give the company access to these materials and will help Elkem to
develop new and innovative solutions for its customers.
The acquisition of VUM is
part of Elkem's strategy to become a leading provider of sustainable solutions
for the carbon-based material markets. 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.
According to the Elkem’s Senior
Vice President for Carbon Solutions" With the acquisition of VUM,
Elkem continues to deliver on its strategy of growth and specialization. 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 improving our joint value offering to our customers. Elkem also aims to
realize synergies from optimizing our value chain and utilizing existing production
capacity to serve other attractive export markets." Further, he says that
"Elkem has had a leading role as a 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.”
According to TechSci Research, the acquisition of VUM by Elkem
is expected to have a positive impact on the growth of the carbon-based
material market. 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 is one of the world’s leading providers of advanced
silicon-based materials shaping a better and more sustainable future. The
acquisition of VUM will give Elkem a larger market share and will allow the
company to offer a wider range of products to its customers, which
significantly influences the company’s profitability.
In addition, the acquisition
is expected to help Elkem to expand its reach into new markets as VUM has a
strong presence in Europe, and its products are used by leading companies in
these regions. Elkem is expected to use VUM's distribution network to expand
its sales in these regions.
VUM has a strong reputation
for customer service. The acquisition of VUM will allow Elkem to use the
goodwill of the company and offer its customers a higher level of customer
service. Hence, the acquisition of VUM by Elkem is expected to have a positive
impact on the growth of Elkem by increasing its market share, a wider range of products,
and a stronger presence in new markets.
According to a report published
by TechSci Research, “Activated Carbon Fiber Market- Global Industry Size,
Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Type (Natural,
Synthetic), By Application (Air Purification, Water Treatment, Catalyst
Carrier, Others), By Region and Competition”, Global Activated Carbon Fiber market is expected to
grow significantly through 2028 owing to the growing demand for water treatment
activities. In 2021, the North American water and wastewater treatment market
increased by 6.5 %. Demand of activated carbon fiber is anticipated to be
driven by growing environmental concerns about air and water pollution as well
as activated carbon fiber's better properties as compared to powdered and
granular activated carbons, resulting in the growth of Global Activated Carbon
Fiber market during the forecast period.