Wacker starts HCR, LSR production in Panagarh, India

MUNICH—Wacker Chemie A.G.'s march toward a global increase in silicone capacity reached another operational milestone July 5, as the company opened silicone production in Panagarh, India.

The plant, at 165,000 square meters, is three times the size of another Wacker production plant that sits about 100 miles to the southeast of Panagarh in Amtala, near Kolkata.

That site, like the larger site in Panagarh, are run through a joint venture between Wacker and Metroark, known as Wacker Metroark Chemicals Pvt. Ltd.

"Panagarh offers excellent infrastructure and very good connections to the Indian railway and road networks," said Auguste Willems, a Wacker Executive Board member. "However, the main benefit of the site is its space. We will use this to significantly expand our production capacity in India and strengthen our market position on the Indian subcontinent.

"This additional production capacity will double the amount of silicone we produce in India in the medium term."

About 100 jobs will be created initially at Panagarh, the company said.

Wacker said it intends to produce silicone in stages at the new site, focusing initially on silicone rubber and ready-to-use silicone compounds for electromobility, medical technology and electronics.

Production of silicone fluids and emulsions at Panagarh is set to occur later, Wacker said. Silicone fluids and emulsion will continue to be produced at Amtala for the personal care, textile and cosmetics industries.

Currently, HCR, LSR and room-temperature vulcanizing solid silicone rubbers, as well as the Silmix series of compounds, are manufactured in Panagarh.

"This way we can supply our customers in India even better and more quickly with our specialty silicones," said Willems. "We will expand this site step-by-step and thus continue to strengthen our leading position as the largest silicone manufacturer in India."

Sustainability practices were implemented with the Panagarh expansion, including piping in river water to protect ground reserves, and using solar panels and rice husks to generate plant energy and heat.

Soumitra Mukherjee, president and managing director of the joint venture, said Amtala laid the groundwork for the partnership in Panagarh.

"The merging of Wacker and Metroark almost a quarter of a century ago laid the foundation for a successful partnership," he said. "The new Panagarh site will continue this Indo-German success story."

Wacker has invested more than $107.3 million in expanded capacity projects at facilities around the globe, including one in Adrian, Mich. The investments are in concert with previously stated growth targets.

The company intends to increase growth in its chemical divisions by focusing on product specialties, especially silicone rubber product specialties.

In addition to Panagarh, sites in Pilzen, Czech Republic, and Tsukuba, Japan, are earmarked for expansions.

Wacker has hinted at additional expansion measures in Zhangjiagang, China, and Charleston, Tenn., though no permanent plans to increase capacity at these sites have been finalized.