Key Events Affecting Business Performance

Acquisitions and Investments

In September 2019, WACKER invested in UK battery specialist Nexeon, acquiring a 25-percent stake. Nexeon develops, produces and markets innovative silicon-based anode materials that considerably boost the performance of lithium-ion batteries. WACKER has been collaborating with Nexeon on battery research since 2013.

Divestitures

WACKER did not divest any business fields or product business in 2019.

Capital Expenditures

Capital expenditures decreased year over year, as planned. They amounted to €379.5 million in the reporting year (2018: €460.9 million).

The focus of WACKER’s investing activities was on our three chemical divisions, with several projects in different countries. In 2019, our Charleston site in Tennessee (USA) finished constructing a pyrogenic-silica facility, which came onstream in October. In Zhangjiagang (China), we built a new plant for solid silicone rubber, which started up in June 2019 and has since produced several thousand metric tons for the Asia-Pacific region. Our Ulsan site in South Korea also completed its new spray dryer for dispersible polymer powders, which has been onstream since September 2019. The site in Holla (Norway) completed the expansion of its silicon-metal manufacturing facilities, with the new furnace starting production in November 2019. WACKER also invested in a series of small- and medium-scale projects for intermediates and downstream products, and in infrastructure measures at our fully integrated sites in Burghausen and Nünchritz.

Silicon

After oxygen, silicon is the most common element in the earth’s crust. In nature, it occurs without exception in the form of compounds, chiefly silicon dioxide and silicates. Silicon is obtained through energy-intensive reaction of quartz sand with carbon and is the most important raw material in the electronics industry.

Silica, Pyrogenic

White, synthetic, amorphous silicon dioxide (SiO₂) in powder form, made by flame hydrolysis of silicon compounds. Variously used as an additive for silicone rubber grades, sealants, surface coatings, pharmaceuticals and cosmetics.

Silicones

General term used to describe compounds of organic molecules and silicon. According to their areas of application, silicones can be classified as fluids, resins or rubber grades. Silicones are characterized by a myriad of outstanding properties. Typical areas of application include construction, the electrical and electronics industries, shipping and transportation, textiles and paper coatings.

Dispersible Polymer Powders

Created by drying dispersions in spray or disc dryers. VINNAPAS^® polymer powders are recommended as binders in the construction industry, e.g. for tile adhesives, self-leveling compounds and repair mortars. They improve adhesion, cohesion, flexibility and flexural strength as well as water-retention and processing properties.