The WACKER Group’s Prospects

Based on our assumptions, we expect the global economy to expand in 2022. The strength of this growth will depend, for example, on whether and to what extent we continue to bring the pandemic under control, and to what extent geopolitical crises such as in Ukraine dampen demand. We expect the strongest growth impetus from Asia, with the USA and Europe also making gains.

Capital Expenditures and Production

Like last year, our capital expenditures in 2022 will concentrate on production plants for intermediates and downstream products. At between €550 million and €600 million, capital expenditures will be markedly higher than both last year’s level and depreciation/amortization. The investment focus will be WACKER SILICONES, which will account for about 50 percent. The division’s capital expenditures include construction of a new plant for hybrid polymers in Nünchritz. In the course of the year, WACKER POLYMERS will continue expanding its production facilities in Nanjing and putting some of them into production.

Future Products and Services

WACKER SILICONES is leveraging diverse applications in the construction, electronics, automotive, health and renewable-energy industries. In the construction sector, there are new application opportunities for silane-modified hybrid polymers, e.g. as sealants or adhesives. Our new, silane-based cement additives are also highly promising. They not only reduce energy consumption during cement production, but also improve the storage stability and performance of cement and concrete. WACKER is also developing a silicone resin binder for composite stone. Such composite materials are UV-resistant and, for the first time, lend themselves to outdoor applications, too. Other construction priorities include fiber composites. Silicone resins enable materials to be made that meet more stringent fire-safety regulations. In our electronics focus field, we are working not only on printable elastic electrode materials for sensors, but also on resin-filled, optically transparent systems for optical bonding applications and on electroactive silicone laminates for making innovative touchscreens for the entertainment, medical and automotive industries. We see significant growth potential in today’s soaring demand for silicone elastomers in the health, automotive and electromobility sectors – our thermally conductive silicones are in particularly high demand. Our new surface-modified, silicon-based filler systems improve the cooling and thermal management of electronic components and electrical storage modules. We are also working on flame-retardant silicones that protect electric-vehicle passengers more effectively against fire hazards. At high temperatures, these silicones create a ceramic layer that enhances the fire resistance of the battery casing. In our renewable-energy focus field, we are active in fuel-cell engineering. Together with automotive manufacturers and suppliers, we are developing cured films for use as fuel-cell liners. In solar thermal energy, our silicone-based heat transfer fluids offer highly promising opportunities. Compared with organic media, these fluids enable parabolic trough power plants to operate at higher temperatures and thus much more efficiently and economically.

WACKER POLYMERS continues to intensify its activities in polymeric binders for sophisticated construction, coating and bonding applications. A key trend here is rising customer demand for sustainable, environmentally compatible solutions. WACKER POLYMERS is actively seizing these market opportunities and developing corresponding product lines. For instance, the division is able to supply a commercial-scale line of dispersions based on vinyl acetate-ethylene copolymers that incorporate renewable raw materials, such as bio-based acetic acid. We employ the biomass balance approach to increase the use of renewable raw materials, Such products are part of our VINNAPAS^® eco product line. Our portfolio also includes dispersions for preservative-free applications. Our biocide-free powder paints enable paint quantities to be precisely measured, reducing material consumption and surpluses. Moreover, in tile laying, we are helping to cut cement consumption and thus reduce CO₂ emissions through the switch from thick-bed to thin-bed techniques.

The pharma and food markets offer growth potential for WACKER BIOSOLUTIONS. The pharma market is steadily shifting toward bioengineered medicines. As a CDMO (contract development and manufacturing organization) for biopharmaceuticals, we are meeting growing demand through our sites in Jena, Halle and Amsterdam. At the Amsterdam site, where production includes vaccines and live microbial products (LMPs), we have been expanding our capacity. We can now, for example, produce new classes of actives here, such as mRNA-based vaccines. At the San Diego site we acquired in 2021, we produce plasmid DNA (pDNA), which is a starting material for innovative therapeutic agents, including nucleic-acid-based gene therapies, mRNA actives and viral vectors. We are also developing a process for making lipid nanoparticles – another essential component in the production of mRNA-based actives. In the food market, we are catering to the healthy-eating trend, e.g. with our range of functional ingredients that support the circulatory system and promote heart health. We are continuously expanding our portfolio in this area. At present, we are working on a process for fermentation-generated biotin. Our cyclodextrins also play an ever greater role in the formulation of active ingredients. For example, they enhance the bioavailability of curcumin. We also offer solutions for making alternative proteins – our L-cysteine is an ideal raw material for savory flavorings. Cyclodextrins help with the formulation of alternative proteins. Moreover, we are developing media proteins, which will be used to produce cell culture meat.

In the coming years, demand for high-quality polysilicon will climb in both the semiconductor and the solar industries. In semiconductors, polysilicon of increasingly higher purity is needed, owing to stricter requirements in chip manufacturing and the development of new technologies. In line with this trend, WACKER is constantly increasing the proportion of ultrapure polysilicon it produces for the semiconductor industry. In the solar sector, demand is growing above all for monocrystalline cells made of n-type silicon. According to Germany’s Mechanical Engineering Industry Association (VDMA), half of all silicon wafers will be manufactured using this technology by 2031. n-type solar cells are more efficient and have a longer life than the currently dominant p-type cells. With our hyperpure polysilicon, we are ideally placed to supply this fast-growing segment.