The WACKER Group’s Prospects
According to our projected scenario, we expect the world economy to grow in 2019. Most momentum will come from emerging markets in Asia, with stable growth in Europe and the USA.
Investments and Production
As in the previous year, our capital expenditures in 2019 will focus on production plants for intermediates and downstream products. WACKER’s priority is to grow its business organically. We continue to see good organic-growth potential for applications and in markets. Capital expenditures of around €400 million in 2019 will be below the prior-year level and remain well below depreciation. Most investment spending will be for WACKER SILICONES. Just over 50 percent of capital expenditure is aimed at securing the continued growth of our operating activities, with the remainder dedicated to optimization and modernization projects.
At WACKER SILICONES, we are constructing a new pyrogenic-silica plant in Charleston, Tennessee (USA). Other projects include facilities to manufacture liquid silicone rubber in Burghausen (Germany) and Zhangjiagang (China). We are also building a new silicon-metal facility in Holla (Norway). At WACKER POLYMERS, we are expanding VAE dispersion plants in Nanjing (China) and investing in a new dispersion plant and spray dryer in Ulsan (South Korea).
In 2019, we will conclude several investment projects and bring the facilities on stream.
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Location |
Projects |
Year |
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|---|---|---|---|---|
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Holla, Norway |
Production facility for silicon metal |
2019 |
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Ulsan, South Korea |
Dispersion reactor and spray dryer |
2019 |
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Charleston, USA |
Production facility for pyrogenic silica |
2019 |
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Nünchritz, Germany |
Capacity extension for production of siloxane |
2019 |
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Burghausen, Germany |
Capacity extension for production of liquid silicone rubber |
2019 |
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Maintenance costs will amount to about €435 million in 2019.
Future Products and Services
WACKER SILICONES is relying on a diverse range of applications for the construction, electronics, automotive and personal care industries. The construction sector offers new prospects for the use of silane-modified hybrid polymers, which hold promise of high growth rates. This technology can be used to manufacture innovative sealants and adhesives as well as wear-resistant protective coatings for concrete floors. Marketing of a new silane oligomer for water-repellent fiber-cement panels has got off to a good start. Demand for specialty silanes for microelectronics is growing. Thermally conductive silicone elastomers are becoming an indispensable material for electromobility. Their cooling properties make specialty silicones an important thermal-management component for state-of-the-art battery cells.
WACKER POLYMERS is intensifying its activities in polymeric binders for sophisticated coating and construction applications. A significant trend here is growing customer demand for sustainable, environmentally compatible solutions. The division is actively seizing these market opportunities by developing appropriate product lines. For example, WACKER POLYMERS has become the world’s first manufacturer capable of using renewable resources to produce commercial quantities of dispersions based on vinyl acetate-ethylene copolymer.
With its products, WACKER BIOSOLUTIONS is opening up new market opportunities for nutritional supplements in sport. Studies have shown that both coenzyme Q10 and the herbal antioxidant curcumin promote not only general performance, but also muscular endurance and regeneration. As both substances are “sparingly soluble” in water and therefore difficult for the human body to absorb, the division’s approach is to convert them into cyclodextrin complexes. This boosts their bioavailability and affords a way to incorporate them into various products aimed at sports enthusiasts.
In the coming years, demand for high-quality polysilicon will also grow further. Crystalline solar cells are dominant worldwide. Demand is continuously growing for monocrystalline cells – premium products that are highly efficient and generate more electricity from the same amount of sunlight. WACKER, as a technology leader, is very well positioned here. With our hyperpure polysilicon, we are ideally placed to supply the fast growing segment for monocrystalline cells. In addition, we are steadily increasing our share of high-quality polysilicon for semiconductors.
Research & Development
The Group’s research and development work remains focused on key strategic projects. WACKER intends to spend 10 percent of its R&D budget on key projects in 2019 (2018: 10 percent). Our R&D work prioritizes the highly promising fields of energy, electronics, consumer care, biotechnology and construction applications. An area of special emphasis is energy storage and renewable-energy generation.
Digitalization
We will advance WACKER’s digitalization program with a wide range of individual projects across the entire company. In 2019, we will launch a new customer information and support system to enhance customer proximity and improve customer orientation. WACKER will also unveil a redesigned website. We are implementing new digital software solutions in production and logistics in order to make our processes both more secure and more productive.
Employees
We expect employee numbers to rise in 2019. The main reason is production-capacity expansion at WACKER SILICONES and WACKER POLYMERS in Asia and the USA. Prudent personnel planning will remain a priority.
Sustainability
WACKER’s sustainability goals for the next few years are described in the Non-Financial Report. In 2019, the regional focus of WACKER’s sustainability management activities will be on Europe, where we will examine environmental, health and safety aspects at individual sites. In 2019, WACKER will be publishing its Sustainability Report for 2017-2018.