Wacker acquiring majority stake in Chinese speciality silane manufacturer

Munich, Germany – Wacker Chemie AG is acquiring a 60% stake in Chinese speciality silane manufacturer Sico Performance Material Co., for a purchase price of €120 million.

Founded in 2013 in Jining, in the eastern province of Shandong, Sico is a 'leading producer' of organofunctional silanes and posted sales of €54 million last year, said Wacker in a 27 Oct statement.

The materials are a key component in high-performance adhesives, sealants, coatings, and composites, used in applications such as construction, automotive, semiconductor, and electronics industries. 

"Our new partnership with Sico is a consistent step in our strategy to further expand the share of high-margin specialities in our silicone business worldwide," said Christian Hartel, Wacker's president & CEO. 

To date, Wacker has been manufacturing organofunctional silanes exclusively in Germany. 

“By acquiring a stake in Sico, we are now further expanding our range of high-performance speciality products in Asia and moving closer to our customers in these fast-growing consumer markets," he said.

The transaction is expected to close in the first half of 2022 after the necessary regulatory and antitrust approvals have been granted.