Procurement-Market Risks

As a chemical and semiconductor manufacturer, we are subject to risks associated with shifts in the availability and prices of raw materials and energy, as well as starting materials and intermediates. In some areas, we rely on only one supplier for the procurement of production equipment. To make procurement (particularly of raw materials) even more efficient, WACKER reorganized its raw material procurement in 2008. The most important raw materials for our business are subject to a regular risk review. Their reliable supply is risk management’s utmost priority. Furthermore, we attempt to counter procurement risks via a whole series of measures. These include long-term supply agreements with partners of high creditworthiness, centrally negotiated procurement agreements, and multiple suppliers for any one product. In the case of long-term agreements with fixed purchase obligations, Raw Materials Procurement aims to keep purchase quantities as flexible as possible. See further details on Procurement