Wacker to acquire majority stake in Chinese silane manufacturer

MUNICH—Wacker Chemie A.G. is acquiring a 60-percent stake in Chinese specialty silane manufacturer Sico Performance Material Co., for a purchase price of $137 million (€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 $61.8 million last year, said Wacker in an Oct. 27 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 specialties in our silicone business worldwide," said Christian Hartel, Wacker's president and 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 specialty products in Asia and moving closer to our customers in these fast-growing consumer markets," he said.

Qu Yuan, chairman of Sico, said the company is "very pleased to join forces with Wacker.

"Wacker is one of the global market and technology leaders in silicones," he said. "Together, we will further expand our specialty silane portfolio."

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