The Board of Directors has also emphasised that the Branded Consumer Goods area will be developed with undiminished strength, and that the chosen model of ownership will not limit the growth ambitions for the Branded Consumer Goods area.

 

Orkla will now intensify its focus on the critical factors for success in each of the companies. In order to achieve this, Elkem, Sapa and Borregaard will be organised as equal-ranking companies within the Group.

 

At the same time, as a result of the Board's decision, Elkem CEO Ole Enger has put his position at the Group's disposal. Group President and CEO Dag J. Opedal has asked him to assume a central role at board level in the further development of the companies, an offer that Mr Enger has accepted. John G. Thuestad, head of Elkem Aluminium, will be recommended to the Elkem board as Managing Director of the company.

 

Orkla will otherwise build further on the leadership, expertise and corporate cultures that have been crucial for the development of Elkem, Sapa and Borregaard. The industrial development processes will continue, in close cooperation between the managements and trade union representatives.

 

In its work on this matter, the Board of Directors has emphasised the importance of considering all relevant arguments and ensuring that the views of the interested parties have been expressed in the course of the process. This includes the management teams of Elkem, Sapa and Borregaard, the employees' organisations, many Orkla shareholders and others. Those who have provided inputs have expressed differing views as to what they see as the optimum solution.

 

"The Board of Directors takes the view that Orkla will provide a good ownership platform for the further development of Elkem, Sapa and Borregaard. Our goal is to focus on and increase the companies' underlying values through company development and further restructuring. Orkla has the ability to contribute to operational improvements and will also be capable of pursuing structural and growth opportunities for the companies. This means that we also believe that this approach will develop the real values in the companies better than listing them on the Stock Exchange would do at the present time," says Johan Fr. Odfjell, Chairman of the Board of Directors.

Orkla will actively promote the development of Elkem, Sapa and Borregaard on the basis of the following main points:

Ambitions for growth in the Renewable Energy sector (hydropower and solar energy)

 

Ensure continued good profitability in the field of primary aluminium/Elkem ANS

 

Improve profitability in downstream aluminium/Sapa

 

Restructuring of the silicon business

 

Pursue growth opportunities in the field of materials and carbon

 

Further operational improvements and specialisation at Borregaard

 

Orkla's future strategic direction

 

Orkla President and CEO Dag J. Opedal points out that Orkla has previously contributed to the development of its companies through dedicated management focus and by utilising the Group's expertise and leadership skills across business areas.

 

"On Capital Markets Day at November 29 we will provide further information on how we intend to develop Orkla in future.

As Orkla has done in the past, we will continue to create substantial added value on the basis of an active industrial ownership platform. Our future path is not to maintain the status quo; continued structural and operational changes and improvements are essential. In the months and years ahead we will speed up portfolio development and restructuring within the Group. Orkla has sufficient financial and management resources to pursue several interesting opportunities in parallel. The Branded Consumer Goods area will be developed with undiminished strength. At the same time, we are developing the resources we use to drive systematic operational improvements in our companies," says Opedal.

 

He points out that Orkla has traditionally created value by continuously adjusting its portfolio. For example, Orkla has taken part in the development of enterprises as different as Carlsberg, Netcom, Frionor, Helly Hansen and Orkla Finans/Enskilda Securities - and thereafter contributed to new ownership solutions. All in all, this has created substantial value for shareholders.

 

Ole Enger to assume a new role in Orkla ASA

 

"I do not conceal the fact that I would have preferred a demerger, but continuing to operate within Orkla is also a good alternative for Elkem and its employees," says Ole Enger. "In the present situation I have found it correct to put my position at Orkla's disposal."

 

Dag J. Opedal has asked Ole Enger to contribute to future progress from a base in Orkla.

"I have asked Mr Enger to be Chairman of the Board of Sapa and a member of the boards of Elkem, Borregaard and REC. Mr Enger has made an excellent contribution to the development of Elkem in the past 14 years. During this period, the company has created value for shareholders in the order of NOK 16 billion, equivalent to an annual return of 24 per cent. I am pleased that Mr Enger has agreed to make a broad contribution to Orkla's future development as well," says Dag Opedal.

In his new function, Ole Enger will report to the Group President and CEO.

 

John G. Thuestad recommended as Managing Director of Elkem