ZHANGJIAGANG, China—Driven by steady growth in demand in specialty silicones, Wacker Chemie A.G. is expanding capacity at a production plant in eastern China.
Munich-based Wacker said the plant in Jiangsu Province will add several new production lines at an initial investment of about $158.9 million.
"This expansion project is our largest single investment in Zhangjiagang since the site was officially commissioned in 2010," said Alvin Hu, president of Wacker China. "The new production facilities and our expanded research and development activities on site will do more than just strengthen our presence in China—they also underscore our determination to offer even better service to our customers in China and the Asia-Pacific region going forward."
Necessary permits for the capacity expansion have been obtained, and the new lines should be on stream by the second half of 2025, according to Wacker.
The plant started production in 2010 and manufactures silicone emulsions, sealants, fluids and elastomer gels—materials used in an array of industries, including textile, cosmetic (keeping makeup from staining clothing), skin creams (reducing the impact of water on sinscreen), shampoos and fabric softeners.
Silicone fluids are used in release agents and as additives for paper, paints and coatings.
The scope of use for the products gives Wacker confidence that demand will continue to grow, making investments like the one Zhangjiagang critical for growth.
"Expanding capacity in Zhangjiagang is a logical next step in the group's strategy of continuing to make specialty silicones a bigger part of its product portfolio," said Christian Kirsten, director of the global silicone segment.
Zhangjiagang represents one of Wacker's largest production sites globally.
Additionally, specialty silicones and LSRs are playing key roles in eletromobility, renewable power and medical technology.