Helge Aasen is stepping down as CEO of Elkem and is proposed to become the new board chair, according to a company announcement. He will continue as CEO to ensure a smooth transition until a new CEO is appointed, but it remains unclear who will replace him. This leadership change was first reported by Dagens Næringsliv, and the annual meeting to formalize the transition is scheduled for the end of April.
In recent months, Elkem has undertaken major restructuring efforts, including selling most of its silicon business to its main owner, Chinese Bluestar in February, though the terms or financial details of that sale have not been disclosed. The company also announced in March that it would cut 300 full-time positions, with the cuts mainly affecting parts of Elkem directly impacted by the sale of the silicon business in mid-February, but the exact locations or departments where these job cuts will occur are not specified. Financial difficulties have compounded these moves, as the company was hit by a major decline during the first quarter, though the specific financial impact of that decline has not been detailed.
Additionally, in February, Elkem halted production in both Sørfold and Rana due to high power prices, but the exact timing and duration of these halts are unknown. According to Helge Aasen, Elkem is making these moves to strengthen competitiveness and financial robustness, with the company admitting it is in a demanding period. Aasen emphasized that the company's focus on cost reductions and efficiency is crucial to secure its future as a solid and agile company capable of quickly seizing new opportunities.
The restructuring efforts are part of a broader strategy to navigate the challenging market conditions and improve the company's financial position. The company's recent actions reflect a response to ongoing economic pressures and operational hurdles, aiming to stabilize its operations amid uncertain market dynamics.