The 30th anniversary celebration of Wacker Chemie AG (hereinafter referred as to Wacker) in China was held with pomp and grandeur on October 11, 2023, in Shanghai. It has been reported that China, which has emerged as the world's largest and most significant single market for Wacker, contributed approximately 30% to the sales of the Wacker.
Photo 1 Kick-off event in Shanghai, China（Photo provided by Wacker）
Dr. Christian Hartel, the President and CEO of Wacker Chemie AG, underscored the paramount significance of the Chinese market for the company in his address. In 2022, Wacker's sales in China soared to a staggering €2.45 billion, constituting approximately 30% of the group's overall sales volume. Over the course of three decades, Wacker has invested an impressive sum of around €1 billion into production facilities, research and development endeavors, as well as customer technical services within China. As the world's largest chemical market and a pivotal driver of global economic growth, China boasts immense potential for further expansion and will undoubtedly present us with countless opportunities for advancement. Dr. Hartel astutely pointed out that over these past thirty years, China has evolved into Wacker's most substantial individual market entity. Wacker remains steadfastly committed to perpetually investing in China by expanding its production bases and R & D centers to effectively cater to burgeoning consumer’s demands.
Photo 2 Dr. Hartel’s speech at the 30th anniversary celebration of Wacker's development in China（Photo provided by Wacker）
The financial data report released by Wacker for the second quarter of 2023 reveals that Wacker achieved sales amounting to a staggering €1.75 billion, down 19% YoY. However, in comparison to the previous quarter, there was a commendable growth of 1% in sales during this period. Notably, the Wacker Silicone business unit accomplished an impressive total sales revenue of €699 million in the second quarter of 2023, experiencing a decline of 25% when compared to the corresponding period last year. This decline can be attributed primarily to diminishing product prices and sales volume while also being influenced negatively by exchange rate fluctuations.
Currently, Wacker boasts three state-of-the-art technical centers, four cutting-edge production bases, and eight strategically located sales representative offices across China. Within the Zhangjiagang integrated production site, Wacker manufactures high and a diverse range of downstream organosilicon products to cater to the ever-growing Asian market demand. The Nanjing production base specializes in the production of premium lotion re-dispersible emulsion powder, polyvinyl acetate solid resin, and other exceptional products that find extensive applications in the construction, adhesive, coating industries among others. Last, at Shunde production base in Guangdong Province, craft silicone lotions and silicone processing agents are manufactured specifically tailored for textile manufacturing as well as leather and fiber applications.
General Review of Wacker’s Silicone Projects
01
On September 26, 2023, Wacker hosted the kick-off event at Zhangjiagang site in Jiangsu Province, marking the initiation of construction for cutting-edge production lines dedicated to functional silicone fluid, silicone emulsion, and silicone elastomer gel. This ambitious expansion project is projected to entail an investment of approximately €150 million and aims to commence trial operations for the enhanced production capacity since 2025.
02
On May 18, 2022, Wacker finally concluded the acquisition of a controlling stake of 60% in Sico Performance Material (Shandong) Co., Ltd., thereby commencing operations at the second largest organic silicon production hub in Jining Town, Shandong, China. This state-of-the-art facility boasts an impressive capacity of nearly 120,000 tons per annum. Notably, its exceptional organic functional silane serves as a vital ingredient within high-performance adhesives, sealants, chemicals for building, coatings, and composite materials.
03
At the beginning of 2021, Wacker embarked on an extensive endeavor in Zhangjiagang site, unveiling four colossal organic silicon projects with a staggering capacity of 260 kt each. These include one project dedicated to technical innovation and three expansion ventures. The quartet encompasses the augmentation of annual production by 67.6 kt for organic silicon products alongside by-products amounting to 2,200 tons of ethanol and of xylene; the amplification of fumed silica production capability to an impressive scale of 8,000 tons per annum coupled with by-products totaling 11,000 tons per year for hydrogen chloride and hydrochloric acid; as well as the enlargement of organic silicon rubber and sealant output reaching a remarkable magnitude of 78.4 kt annually along with an expanded production capacity for silicone emulsion and silicone fluid at a rate exceeding a whopping 93.66 kt/a.
04
On June 10, 2019, Wacker ceremoniously inaugurated a cutting-edge silicone elastomer production line at Zhangjiagang site in China. This state-of-the-art facility boasts an impressive annual production capacity of thousands of tons and will significantly bolster the supply of high-temperature vulcanized silicone rubber (HCR for short) across the Asia-Pacific region. The newly established production line is equipped with two world-class HCR units, enabling the seamless creation of a diverse range of top-notch HCR family products.
