Strategy at Each Business Division
In the chemical divisions WACKER SILICONES and WACKER POLYMERS, sales are to grow by a factor of 1.5-2 annually. At the same time, profitability is to continue rising. The EBITDA margin is planned to surpass 20 percent by 2030. The previous target for the chemical divisions was 16 percent. ROCE is to be more than twice the cost of capital. To intensify growth in specialties, capacity will be expanded in the local regions and markets where customers do business. Investment spending is to double to over €400 million annually.
WACKER SILICONES is scaling up its efforts to to establish customer proximity in the regions. This strategy is underscored by the investment in the Chinese specialty silane manufacturer SICO Performance Material. With its new plant in Panagarh (India), which specializes in silicone end products, the division is continuing to strengthen its market leadership in India. It also plans to create additional new capacity for specialties at Charleston, Tennessee (USA).
WACKER POLYMERS will significantly expand its capacities in Europe and Asia in the coming years – the plan is to double them by 2030. The portfolio for sustainable product solutions will be expanded, including those based on renewable raw materials. The same applies to customer-specific solutions.
WACKER BIOSOLUTIONS will reach new dimensions by 2030. By that point in time, annual sales are planned to rise to around €1 billion, driven by organic growth and targeted acquisitions, while the EBITDA margin is to reach around 25 percent. One pillar of this strategy is biologics – in particular, advanced medicines. The second pillar is fermentation-based manufacturing of ingredients for nutritional supplements based on renewable raw materials. The plan is to expand the division’s product portfolio with internal innovation, partnerships and further acquisitions. Annual investment spending is to exceed €80 million.
At WACKER POLYSILICON, the EBITDA margin is to exceed 30 percent by 2030. ROCE is to be more than twice the cost of capital. The division wants to continue strengthening its position, particularly in the semiconductor business. The share of electronic-grade hyperpure silicon in the division’s total output will continue to rise. Investment spending should reach around €100 million annually.