Wacker Silicones on a mission to double growth

London - Wacker Chemie AG has set out ambitious growth plans for its silicones business as part of new strategic targets across the Munich-based chemicals group.

At a 29 March ‘capital market day’ presentation in London, Wacker set out goals to lift overall sales to over €10 billion by 2030 on 2020 while keeping profitability high.

The German group previously reported 2021 sales of €6.21 billion - including €2.6 billion from Wacker Silicones - up 32% on the previous Covid-impacted year.

For the Wacker Silicones division, the aim is to grow sales, via higher volumes and a better product mix, by between 6% and 10% a year.

That would accelerate an annual historic growth of 4% to 5% by a factor of 1.5 to 2.0.

Earnings (EBITDA) margin is to exceed 20% by 2030, up from a previous target of 16%.

Wacker said it will support growth of its chemicals units - silicones and polymers - with capacity expansions in key markets.

Capex across the two business areas is, therefore, planned to double to more than €400 million per year.

“Wacker Silicones is concentrating on high-margin specialties and will consistently follow this strategy going forward… and build on regional proximity to customers,” said the group.

An investment, last autumn, in Chinese speciality silane manufacturer SICO Performance Material, was cited as underscoring this strategy.

“With this investment, Wacker aims to expand its range of high-quality specialties in Asia and move closer to its customers in these fast-growing markets,” it noted.

With its new plant in Panagarh, India, which is specialised in silicone end products, the division is continuing to strengthen its market leadership in that country.

Wacker Silicones is also to create additional new capacity for specialties at Charleston, Tennessee, to help it “grow faster than the market through focused investments.”

“We finished 2021 with record sales and strong earnings – despite headwinds from raw materials and energy,” announced Wacker CEO Christian Hartel.

“We want to maintain this momentum and are charting our course for accelerated growth going forward,” said Hertel.