Press release: Orkla sells Elkem to China Natio...

Orkla  ASA has signed  a binding agreement  with China National Bluestar (Group)
Co.,  Ltd  (Bluestar)  for  the  purchase  and  sale  of  Elkem. The transaction
comprises  Elkem  Silicon  Materials,  Elkem  Foundry Products, Elkem Carbon and
Elkem  Solar. According to the  agreement, the sales price  is USD 2 billion for
Elkem  before closing- and capital structure adjustments. The agreement includes
the  1.5 TWh/year power contract Orkla acquired last year which will ensure that
Elkem's  smelting plants in Norway will  have a secure and long-term competitive
power  base.  Orkla  will  remain  the  owner  of the shares in Elkem Energi AS,
including its 85 % stake in AS Saudefaldene.

Bluestar  is  a  leading  China-based  international chemicals and new materials
company,  with 2010 sales in excess of USD 6 billion and Head Office in Beijing.
The  company is 80%-owned by the Chinese state-owned company ChemChina, with the
remaining 20 % owned by the US private equity firm Blackstone Group. Since 2006
Bluestar has performed a number of international acquisitions, including Adisseo
and Rhodia's Silicones business in France, and the Australian company Qenos.

Elkem will become an important part of Bluestar's operations going forward. With
this  transaction Bluestar will  strengthen its competitiveness  in the silicone
industry  and broaden its footprint in adjacent markets. All of Elkem's business
areas  and technologies are important for supporting the booming Chinese economy
and will help the country in reaching its global climate targets.  Elkem Solar's
technology  for the highly  energy-efficient and environment-friendly production
of  solar-grade silicon  reduces the  risk of  emitting environmentally damaging
substances  and enjoys a significantly lower energy consumption than traditional
technologies. Elkem is in a worldwide leading position in this new technology.

 "It  is important to secure that Elkem has  a new owner able to further develop
its  potential and keep its competence  and resources united. In Bluestar, Elkem
will  have an owner that has solid  financial capacity and is well positioned in
the  world's largest  market for  metals and  renewables. Bluestar  has the best
attributes  to take advantage of the potential of Elkem's technological strength
and competence", states Bjørn M. Wiggen, President and CEO of Orkla ASA."

Helge Aasen, CEO of Elkem, comments as follows: "China is or will be the biggest
and  highest-growth  market  for  silicon  metal,  foundry products, solar-grade
silicon  and other products offered  by Elkem. I believe  that by joining forces
with  Bluestar Elkem will have a strong platform for promoting its technological
leadership  and securing a prosperous development going forward. For Elkem, with
Bluestar  as our new  owner, we will  achieve one of  our main targets, namely a
stronger  presence in  Asia in  general and  in China  in particular.  This will
strengthen  the position of  our plants, both  in Norway and  in the rest of the
world.  In addition, Elkem will also have the opportunity to take a leading role
in   the   upgrading  and  further  development  of  Bluestar's  silicon-related
operations,  especially  in  China.  We  look  forward  to  working with our new
colleagues from Bluestar. "

Mr  Ren Jianxin,  President of  Chemchina and  Chairman of Bluestar, sees strong
potential for a combined Elkem-Bluestar organisation:

 "Elkem   will   play   an  active  role  in  promoting  the  international  and
technological  management  of Bluestar's  business, further expanding Bluestar's
silicone  industry chain  and improving  its  global competitiveness.. Combining
Bluestar  with Elkem will be of great benefit to both companies:  For Elkem, its
access  to  Asia,  and  especially  China  will  be significantly enhanced going
forward,  which is a real advantage given the  size and growth of China and Asia
for most of Elkem's products. For Bluestar, the combination with Elkem will give
them  access  to  Elkem's  excellent  management experience and industry-leading
technological  know-how. We strongly  believe in the  huge potential for Elkem's
new  solar-grade technology with its leading energy efficiency and environmental
safety  characteristics.  I am welcoming Elkem into  the Bluestar family as I am
convinced  that our diversity in terms  of management background and technology,
industry  experience, culture and  regional footprint will  be the source of our
combined strength.

The  transaction will not involve significant  changes to Elkem's main structure
or  to the operation  of its existing  plants. Completion of  the transaction is
subject  to the approval by certain Chinese and competition authorities, as well
as  the approval by the Norwegian authorities. Completion is expected during the
1(st) half of 2011.

Bluestar  was assisted by The  Royal Bank of Scotland  as financial advisor, and
Selmer  and Skadden as legal advisors. Orkla was assisted by Moelis & Company as
financial advisor and Thommessen as legal advisor.

A press conference will be held at Orkla`s head office at Skøyen in Oslo, today
at 10.00 CET. The press conference will be webcasted at www.orkla.com.


Orkla ASA
Oslo, 11 January 2011

 For more information please contacts:

 Bjørn Wiggen, CEO Orkla ASA:                        [phone]

 Helge Aasen, CEO Elkem AS and Elkem Solar AS:       [phone]

 Rune Helland, SVP Investor Relations, Orkla ASA:    [phone]

 Johan Chr. Hovland, SVP Corporate Communications

 and Public Affairs, Orkla ASA:                     +47 91 76 34 91



 Robert LU, CEO Bluestar:                           [phone]

 Yougen GE, Assistant of CEO,Bluestar:              [phone]

 Yuxin XI, Communication Director,Bluestar:         [phone]










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Source: Orkla ASA via Thomson Reuters ONE

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