Procurement and Logistics (unaudited section)

In 2020, WACKER’s procurement volume fell to €2.8 billion (2019: €3.4 billion). The main reasons were not only markedly lower raw-material and energy prices, but also a general reduction in procurement activities due to lower capital expenditures and to the Shape the Future cost-saving program. At 61 percent, the procurement rate – raw materials, services and other materials as a percentage of sales – was well below the prior-year level (2019: 69 percent). The number of suppliers, at around 11,000, was on par with the prior year.

The Group spent at €1.7 billion to procure energy and raw materials, which was down by around 11 percent (2019: €1.9 billion). Most of this decline stemmed from lower prices, with the rest being due to reduced volumes.