Strategy at Each Business Division
The strategy at WACKER SILICONES is focused on high utilization of our production capacity and increasing the proportion of value added, while keeping raw-material consumption the same. We have established differentiated marketing strategies for selling standard and specialty products.
This strategy is accompanied by the development of new products that should increasingly contribute to revenue in the coming years. We have set our research priorities accordingly and realigned our innovation portfolio. The Asian region is an important focus of our market activities. We have had five new teams installed in this area since 2013 to assist customers locally and increase our presence in the region.
WACKER POLYMERS continues to firmly pursue its strategy of profitable growth in dispersions and dispersible polymer powders. The key is to develop regional production capacities for dispersions and polymer powders so that local and regional customer demand can be met both promptly and cost-effectively. To this end, it is important to develop product solutions that are specifically tailored to local application requirements. WACKER continued this systematic approach in 2014. In Germany, we are creating additional production capacity for dispersible polymer powders to meet growing demand, especially in Eastern European countries. An important aspect of our strategy is to develop new applications for our products, thereby also improving their properties so that they can replace other products.
WACKER BIOSOLUTIONS continues to concentrate on the pharmaceutical, agrochemical and food industries. We increasingly draw on chemical-biotech synergies to provide our customers with complete solutions for their specific market needs. The success of our products in the industries we serve is based on a strong customer focus. Consequently, the division’s organizational structure is firmly oriented to customers and markets. WACKER BIOSOLUTIONS will focus even more on innovation to achieve future revenue growth. The acquisition of Scil Proteins Production GmbH in 2014 was a step toward strengthening our business in pharmaceutical proteins.
WACKER POLYSILICON’s strategic aims are to maintain its quality and cost leadership as a hyperpure-polysilicon manufacturer, and to expand its production capacities in line with market growth. The Tennessee site, ready for production in 2016, will expand our capacities by another 20,000 metric tons. The cost position is a key factor for success in this competitive market, which is why we still focus on reducing costs through productivity improvements and on optimizing our supplier base.
At Siltronic, there are four coordinated strategic priorities. By concentrating on lead sites, we enhance capacity utilization and cost structures. With regard to individual wafer diameters, our focus is on the fast-growing 300 mm silicon wafer segment in Asia. The acquisition of a majority stake in Siltronic Silicon Wafer Pte. Ltd. will continue to boost our competitive position in this region. One ongoing strategic task is to implement productivity, cost-saving and flexibility initiatives to improve production processes and workflows. Investments in product developments are aimed at fulfilling the latest design-rule specifications and implementing quality-enhancing measures. Investments are lower than the amount of depreciation. Siltronic is no longer working on 450 mm technology.