Procurement and Logistics

WACKER was able to secure the supply of most of the silicon and electricity needed at contractual prices fixed back in 2009. As for ethylene and methanol, the quantities and conditions for 2010 have been agreed, although the actual prices we pay will depend on market conditions during the course of the year.

A Large Part of Silicon Demand for 2010 Secured at Fixed Prices

During 2010 and 2011, we will be running a project to reduce our dependency on individual suppliers, not only for raw materials, but also for technical goods and services. Based on an analysis carried out in 2009, this project will increase competition, thus reinforcing our negotiating position in terms of price, contract management and due dates. In the next few years, WACKER intends to strengthen strategic procurement, since it is where most procurement successes are identified. Because demands on procurement management will continue to rise over the next few years, WACKER will help employees boost their qualifications by offering them training programs, especially interdisciplinary courses and negotiation training.

The key logistics task is to start systematically analyzing and optimizing WACKER’s global distribution network. In partnership with WACKER’s business divisions, our logistics specialists will support production-capacity expansions with sophisticated material-flow strategies. WACKER will press on with groupwide standardization of supply-logistics and goods-acceptance processes.

Due to WACKER’s substantial expansion-related investment program, Technical Procurement will turn its focus in 2010 and 2011 onto enhancing support for large-scale projects – Nünchritz’s investment projects and Zhangjiagang’s Expansion Stage 2 for pyrogenic silica. The aim is to attain the quality levels specified within the costs budgeted, and to secure the ramp-up schedules.