Wacker celebrates growth in China

SHANGHAI—Wacker Chemie A.G. made its foray into China in 1993 with foresight and assumptions about market growth.

Since then, the world's largest chemical market has grown to represent about 30 percent of group sales, or about $2.64 billion, for the Munich company.

As such, Wacker China is celebrating 30 years this year, a journey that has seen four joint ventures implemented, technical and research and development centers constructed and four production sites built.

Wacker celebrated its 25th year at a plant in Germany in August.

An Oct. 11 ceremony in Shanghai celebrating the three decades was well-attended, according to Wacker officials, with local authorities, customers and long-standing business partners in attendance.

"Our track record is impressive," said Alvin Hu, president of Wacker China. "We are well-positioned strategically, especially with a view to key growth topics."

Hu cited the growth in EVs in the region.

"This will benefit our silicone business, as Wacker's high-performance silicones are essential for the development and production of electric vehicles," he said.

In the last year alone, Wacker China has seen a capital infusion of close to $260 million, as sites in Nanjing (powders and dispersions, as well as polyvinyl acetate solid resins) and Zhangjiagang (specialty silicones and fumed silica) are adding capacity.

"China is an important growth driver for the global economy," Christian Hartel, Wacker president and CEO, said at the Oct. 11 ceremony. "The country offers a wide range of development opportunities, which we intend to leverage continuously."

In May, Wacker ramped up new production facilities for dispersions and dispersible polymer powders in Nanjing, an infusion of about $100 million.

In September, the site in Zhangjiagang in eastern China announced the addition of several new production lines for manufacturing functional silicone fluids, silicone emulsions and silicone elastomer gels.

This was a capital investment of about $160 million, according to a Sept. 23 Rubber News report.

"This is our largest single investment since the site went into operation," Hartel said.

Over three decades in China, Wacker has invested more than $1 billion in production and capacity growth, technical service centers and research and development, the company said.

A Wacker Academy also has been constructed there, and in 2012, the company opened its Shanghai Center, which has multiple application centers and labs.

The products from Shanghai Center serve the construction, coatings, adhesives, electronics, automobile and personal care spaces. The facility also operates "global competence centers" for consumer care, cement and concrete, e-mobility and thermal interface materials.

Across four sites, including those in Shunde and Jining, Wacker China employs about 1,700 people.

While the Shunde site manufactures silicone emulsions and silicone-based products for textile, leather and fiber applications, Jining offers organo-silane monomer for the adhesives, sealants, construction chemicals, coatings and composite markets.