Major Markets and Competitive Positions

What Market Positions Do WACKER’s Individual Divisions Command?

Siltronic is the third-largest global manufacturer of silicon wafers and other products for the semiconductor industry. Its customers include all major semiconductor companies worldwide, who account for over 80% of this division’s sales.

Leading Positions in Attractive Markets

In the silicones market, WACKER SILICONES is also Number 3 – plus, it is the global market leader in silicones for masonry protection. WACKER enjoys a leading position in Europe, where over half of our silicones sales were generated in fiscal 2008. Silicone products are used in a large number of industries. The market is therefore characterized by great product diversity and has experienced steadily rising demand over the past years. As is the case with WACKER’s other divisions, WACKER SILICONES fastest-growing market is Asia. Today, Asia is already the most important market for silicone products. To match our success in other markets, WACKER is investing heavily in Asian market expansion – with a particular focus on China.

With WACKER’s acquisition of all shares in our two former partner companies with American-based Air Products, WACKER POLYMERS is now the world’s largest producer of dispersions and dispersible polymer powders on a vinyl acetate/ethylene basis. Since fiscal 2008, we have been the only company in that market to offer a complete supply chain for dispersions and powders in Europe, the Americas and Asia. WACKER mainly supplies these products to the construction and textile sectors, as well as to producers of adhesives, paints and surface coatings. The largest growth potential lies in Asia – especially China.

In the year under review, WACKER POLYSILICON strengthened its position as the world’s second-largest manufacturer of hyperpure polycrystalline silicon for electronic and solar applications. Production output rose by 3,800 metric tons to 11,900 metric tons in 2008. Growing demand for polysilicon is primarily driven by the solar industry. Naturally, the semiconductor sector has remained another important customer.

WACKER FINE CHEMICALS manufactures fine chemicals and pharmaceutical proteins, giving it a diversified customer portfolio. WACKER is the global leader in certain fine chemicals such as cyclodextrins and bio-engineered cysteine. We enjoy a promising market position in the production of pharmaceutical proteins, too.

WACKER’s competitive edge is not restricted to the product front. Thanks to our integrated production system, we also preside over key manufacturing advantages, which cut costs via the recycling of process-related by-products and co-products in other process stages.

WACKER’s R&D focus and innovative strength have resulted in cutting-edge products in numerous areas. Many of these offer customers significant advantages.

WACKER boasts a high degree of technological expertise. It is also characterized by high manufacturing productivity, close collaboration with customers when they develop new products, and major investments in high-volume production facilities. New competitors are thus confronted with high market-entry barriers. As a result, WACKER usually faces few competitors in virtually all its business fields.