WACKER POLYMERS

Strategy

At WACKER POLYMERS, the strategic priority is profitable, ongoing growth in dispersions and dispersible polymer powders. This growth is largely driven by products tailored to local applications. We provide customers with intensive local support and are expanding our network – especially our technical competence centers. Here, we cooperate locally with customers to develop tailor-made product solutions. Through our centers, we apply our many years of product expertise to the local application needs of customers around the globe.

Higher Sales

Despite 2010’s subdued global trend in the construction industry, WACKER POLYMERS increased its sales by 9 percent to €810.0 million (2009: €743.8 million). Sales for the first six months of 2009 still included gumbase. Adjusted for this business, the sales increase would have been 12 percent. Growth was mainly supported by rising sales volumes for dispersions and dispersible polymer powders. Compared to 2009, volumes were up between 5 and 15 percent, depending on the product group. Demand remained strong even during the summer months. Regionally, Asia again delivered the highest growth rates.

EBITDA climbed by 5 percent to €122.6 million (2009: €117.2 million). The EBITDA trend was held back by a sharp rise in ethylene prices. Greater sales volumes and slightly higher prices did not fully compensate for the increase in raw-material prices. As a result, the division’s EBITDA margin edged down to 15.1 percent (2009: 15.8 percent).

Decline in Investments

Investments decreased to €13.1 million, down €26.9 million on 2009 (€40.0 million). Spending focused on expansion at our Nanjing site in China and on investments at Burghausen, Germany.

VAE Dispersions Now also Produced in China

In China, WACKER began selling its locally manufactured vinyl acetate-ethylene copolymer dispersions in early July 2010. Production at our fully integrated Nanjing site now ranges from VAE copolymer dispersions right through to dispersible polymer powders. These products are used in the construction, coatings and adhesives industries, for example. Currently, Nanjing’s dispersions capacity is roughly 50,000 metric tons per year. WACKER is now able to serve local Asian markets even more effectively from Nanjing. As a result, we have improved our position as a supplier of high-grade binders and polymeric additives in China.

Stronger International Presence

WACKER POLYMERS reinforced its presence in growth markets by expanding its technical competence centers in Suwon (South Korea) and Dubai. The centers offer customers enhanced, local support in all construction-chemical issues – from applications engineering, through to tailored product solutions and customer service. At the same time, we have also enlarged our WACKER ACADEMY network of local training centers, which provide construction-specific expertise to customers. In 2010, new training centers opened in Brazil, Dubai and Singapore.

Employee numbers rose slightly to 1,377 as of December 31, 2010 (December 31, 2009: 1,362).