Wacker talks up prospects for silicones business in China

Shanghai, China – Wacker Chemie AG has issued an upbeat assessment of its prospects in China's silicone-products market.

The German-based chemicals & polymers group currently operates four production units, two research centres and eight sales branches in China.

With over 1,700 employees, Wacker China generated around €2.5 billion in 2022, which represented approximately 30% of overall group sales.

Last month, it announced plans to add new production lines for silicone oils, emulsions and elastomer 'gels' at its Zhangjiagang site.

This followed the commissioning of new facilities for the production of silicone dispersions and dispersible powders in Nanjing in May.

“We are strategically very well positioned in China, especially with regard to key growth [markets],” Alvin Hu, head of Wacker China, said at an 11 Oct ceremony marking the group's 30th year in the country.

As an example, Hu said the increasing electrification of vehicles in China represented a significant potential upside for Wacker’s silicone business.

Opening the event, Wacker president and CEO Christian Hartel (pictured) said: “China is the world’s largest chemical market and an important growth driver for the global economy.

"The country offers a wide range of development opportunities which we at Wacker intend to leverage continuously.”

Wacker manufactures highly dispersed silica, as well as finished silicone products for the Asian market at its Zhangjiagang site.

At Nanjing, the company produces dispersions, dispersion powders and polyvinyl acetate solid resins for the construction, adhesives and paint industries.

Furthermore, Wacker’s Shunde site manufactures silicone emulsions and silicone-based processing aids for textiles, leather and fibre applications.

Last year, Wacker acquired a 60% stake in Sico Performance Material (Shandong), including a production site in Jining – now its second-largest silicones site in China.

Wacker manufactures organofunctional silanes for adhesives and sealants, construction chemical products, coatings and composite materials at this site.