Wacker rolls out $200m silicones expansion plan in US

Munich, Germany - Wacker Chemie AG has started a feasibility study for a new silicone production complex at its Charleston site in Tennessee, the German chemicals maker announced 26 July

The move is part of a multi-phase construction plan at the US site, spanning several years and with an investment tag of over $200 million (€197 million) 

First up will be production plants for high-consistency silicone rubber and silicone sealants as well as intermediates manufacturing units, added Wacker, the world's second-largest silicone producer.

Plants for other products, such as silane-terminated polymers used as binders for adhesives & sealants and waterproofing systems, “could then be added,” said the Munich-based group. 

Wacker has been producing high-purity polysilicon for the semiconductor and solar industries at the Charleston site since 2015, and pyrogenic silica there since 2019.

Demand for high-performance speciality silicones is showing particularly strong growth in industries including automotive, construction, electronics and medical technology, noted Christian Hartel, CEO of Wacker.

“The planned expansion measures in Charleston are a further step toward making Charleston a fully integrated site with closed production loops, and an important prerequisite for accelerating our growth as planned,” said Hartel. 

The German chemicals group is aiming to achieve sales of over €10 billion by 2030, with an earnings (EBITDA) margin of over 20%. 

This target compares to group-wide turnover of €6.2 billion and an EBITDA margin of 24% in 2021. Wacker Silicones contributed EBITDA of €555 million on sales of €2.6 billion.