Wacker raising investment in silicone operations under mid-term plan
German chemicals supplier eyes particular growth opportunities in China, US markets
Munich, Germany – Following strong growth in sales and earnings in 2022, Wacker Silicones is in expansion mode, with a particular eye on markets in China and the US.
That's according to the group's medium-term strategy, published earlier this month, which highlights significant opportunities for its silicone elastomers and related materials.
To deliver its goals, the German chemicals maker has earmarked €650 million in capital expenditure, most of which will be allocated to expansion plans within its silicones business area.
Planned investments, said Wacker, include the construction of a new plant for the production of silicone resins in Burghausen, Germany.
The project is in line with group efforts to establish customer-proximity in various regions around the world.
Wacker went on to note that the most significant growth opportunities are in regions outside of Europe: “That is why we will be investing more strongly there, in Asia but also in Americas.”
The approach was recently underscored by Wacker’s investment in Chinese speciality silane manufacturer Sico Performance materials and the opening of a new plant in Panagarh, India.
The Indian facility specialises in silicone end-products, such as silicone rubber and silicone rubber compounds for e-mobility and medical engineering applications.
Furthermore, Wacker is planning to establish additional new production capacity for specialities at its silicones facility in Charleston, Tennesee.
Wacker will be investing €100 million at its facility in Charleston, Tennessee to produce heat-curing solid silicone rubber and silicone sealants by 2025.
The planned expansions in the US, China and Germany are aimed at making the facilities “a fully integrated site with closed production loops.”