WACKER Greater China Achieves Record Sales in 2022

WACKER Greater China posted rapid growth across most of its business fields in 2022. With the implementation of the measures to support China’s carbon neutrality target, WACKER’s polysilicon business performed particularly robustly, due to strong customer demand in a tight market and amid markedly higher prices. Other WACKER products needed to help China achieve the energy transition also enjoyed robust growth, such as silicones for electro-mobility and ultra-high-voltage power transmission. With demand for high-quality products rising among Chinese consumers, WACKER’s own-label silicone sealants for end customers grew substantially as well. The successful launch of products developed by the WACKER BIOSOLUTIONS’ China team also led to double-digit sales growth in that division. However, weak demand in the real estate market adversely affected sales of polymer products.

On May 18, 2022, WACKER completed the acquisition of a 60 percent stake in Shandong SICO Performance Materials Co., Ltd. This acquisition has strengthened WACKER’s product portfolio in silicone specialty chemicals. The new dispersions reactor and a spray dryer for dispersible polymer powders at WACKER’s Nanjing site are nearing completion. The spray dryer will enter production in May of 2023, while the dispersions reactor is scheduled to come on stream in June. As a result, the company’s capacity for polymer products in China will more than double. Zhangjiagang expansion projects for silicone emulsion and silicone fluids production are forging ahead steadily. Construction will start once the relevant approvals have been obtained.

By the end of 2022, WACKER had made cumulative investments of over €970 million in China. “WACKER presented its strategic goals in 2022. By 2030, global sales are planned to rise to over €10 billion. Higher investments are an important steppingstone toward achieving this target. As WACKER’s largest single market, China will play a substantial role in the company’s future growth. Therefore, increasing our investment in China is an important move,” said President of WACKER Greater China, Paul Lindblad.

2023 marks the 30th anniversary of WACKER’s entry into China. In March just gone, Dr. Christian Hartel, President and CEO of WACKER Chemie AG visited China again, after having visited the country with the German Chancellor last November. Dr. Hartel was invited to attend the China Development Forum and delivered speeches at the summit. He joined the meeting with the Prime Minister and visited Jiangsu afterwards to meet with the Governor of Jiangsu Province.

“Dr. Hartel’s second visit in four months demonstrates WACKER’s strong focus on China, its optimistic attitude toward China’s development prospects the company’s determination to further invest in China,” Lindblad said, adding that “2023 won’t be an easy year. The weak market demand in January and February shows that economic recovery is sluggish. However, thanks to the implementation of various measures by the central government aimed at promoting economic development, market demand is progressively rebounding, and with our investment plan, we are all set to provide the increasing volumes that our customers need. We remain confident about our performance in China in the years to come.”