WACKER Announces Ambitious Expansion Plans in China

By Lily Wang

WACKER announces it will continue to invest Euro 150 million in China in the following four years. The Munich-based chemical group’s investment in China is estimated to reach some Euro 500 million by the end of 2014.
   In 2011, WACKER plans to further expand its production facilities at both its Zhangjiagang and Nanjing sites.
   The pyrogenic silica plant phase II at Zhangjiagang site is scheduled to be operational in the second half of 2011. An expansion of the sealant plant is also on the agenda. Additional capacity will allow WACKER to better meet the increasing customer demand and reinforce market position in the relevant fields.
   In Nanjing, another Euro 10 million is earmarked to broaden capabilities and increase output for vinyl acetate/ethylene (VAE) copolymer dispersions. With this expansion, WACKER will be able to respond to the growing demand for low odor paints and environmentally-friendly construction products in China.
   "With the 12th Five-Year Program launched this March, China strongly emphasizes the sustainable development of its economy. This makes us even more confident that our investments will pay off and that our business in China will be successful", said Dr. Peter von Zumbusch, President of WACKER Greater China, at a press conference held in Beijing April 12. "As a technology leader in the chemical sector, WACKER will actively participate in and contribute to China's sustainable development with our future-oriented products and technologies."
   WACKER's product portfolio is ideally suited for leveraging future growth trends, such as growing energy needs, increasing environmental awareness and improving life standards. For example, WACKER's polycrystalline silicon is the most important raw material in the photovoltaic industry. VINNAPAS?dispersible polymer powder produced at WACKER's Nanjing site is an indispensable binder in Exterior Insulation and Finishing Systems (EIFS). And silicones produced at WACKER's Zhangjiagang site are essential for products offering highly diverse properties, which enable improvements in every aspect of daily life in China.

WACKER Greater China achieved double digit growth on sales in 2010

With the post-crisis recovery of global economy and Asia as one of its major growth drivers, WACKER Greater China generated sales of Euro 999.4 million, up 36% year-on-year. Regional sales thus accounted for 21% of WACKER’s global sales volume. For the current 2011 fiscal year, WACKER Greater China again expects further sales growth.
   In Greater China, all of WACKER’s business divisions achieved double digit growth in 2010. Polysilicon business continued to be very robust. Siltronic business significantly increased thanks to stronger customer demand. Regarding silicone and polymer business, capacity expansions enabled WACKER to respond faster and more efficiently to local customers’ needs, thus enhancing the company’s market position.
   At the Zhangjiagang site, WACKER officially inaugurated its new silicone polymer and fluid plant in October 2010. This plant manufactures not only intermediates, but also downstream silicone products, including fluids. In November, WACKER also started up a siloxane joint-venture plant with Dow Corning as scheduled. It is one of the world’s largest facilities of its kind. With the inauguration of these two plants, WACKER successfully established a fully integrated silicone supply chain in China.
   The Zhangjiagang integrated site includes a siloxane plant and a pyrogenic silica plant, both of which are jointly owned by Dow Corning and WACKER. The site also features finished silicone production plants which are owned and operated independently by each company. The landmark project began in 2006.
   In 2010, WACKER also strengthened its sales presence in China by expanding its office in Guangzhou of southern China and by founding a new office in Chengdu of southwestern China. An invoicing center was established in Shanghai at the end of 2010. As a result, WACKER upgraded its customer service through optimized administration.
   WACKER Greater China was also recognized as “2010 Top Employer” for its long-standing commitment to its staff by the Corporate Research Foundation (CRF), an international organization that identifies top performers among major employers.