The WACKER Group’s Prospects

Our scenario assumes that the global economy will grow slightly in 2023. The speed of growth will depend, among other things, on the further course of the war in Ukraine, with its negative impacts on the global economy. We expect the strongest growth impetus to come from Asia. The USA and Europe are also expected to deliver growth, albeit weaker.

Capital Expenditures and Production

Our capital expenditures in 2023 will be focused mainly on production plants for intermediates and downstream products. At around €650 million, capital expenditures will be markedly higher than both last year’s level and depreciation/amortization. WACKER SILICONES will account for the largest share of investment spending. The division’s capital expenditures include construction of a new plant for silicone resins in Burghausen. In the course of the year, WACKER POLYMERS will continue expanding its production facilities, including in Nanjing. At WACKER BIOSOLUTIONS, a new fermentation line will come on stream at the Amsterdam site.

Future Products and Services

WACKER SILICONES is leveraging diverse applications in the construction, electronics, automotive, health and renewable-energy industries. In the construction sector, we will offer new application options for silane-modified hybrid polymers, e.g. as sealants or adhesives. Our silane-based cement additives are also highly promising. They enhance the storage stability and performance capability of cement and concrete, and reduce energy consumption during the manufacture of cement. WACKER is also developing silicone resin binders for composite stone. Such composite materials are UV-resistant and lend themselves to outdoor applications, too. Other 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 on several product innovations: printable elastic electrode materials for sensors; resin-filled, optically transparent systems for optical bonding applications; and electroactive silicone laminates for making cutting-edge touchscreens. We see significant growth potential in today’s soaring demand for silicone elastomers, silicone resins and thermal gap fillers in the health, automotive and electromobility sectors. 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 and silicone-based fiber composites, which protect the passengers of EVs against the risk of fire. We are currently testing a novel type of silicone-based artificial leather as a seat upholstery for cars. This innovative hard-wearing material has a very pleasant feel, is resistant to UV light and is colorfast. Unlike conventional faux leather, it is free of plasticizers. In the chip industry, there is growing demand for our electronic chemicals as processing auxiliaries. In the renewable-energy field, we are active in fuel-cell engineering. Our silicone-based heat transfer fluids – for concentrated solar thermal power production and the climate-neutral generation of industrial process heat – are another promising product. We have recently begun developing sustainable defoaming agents for the detergent industry. These are based on renewable raw materials that are almost entirely biodegradable.

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. The division is actively pursuing these market opportunities, developing corresponding product lines and sustainable formulations together with its customers. For instance, it is able to supply a commercial-scale line of dispersions based on vinyl acetate-ethylene (VAE) copolymers that incorporate renewable raw materials like bio-based acetic acid. We employ the mass balance approach to increase the use of renewable raw materials, the corresponding products being marketed as part of our VINNAPAS^® eco line. In addition, we continue to advance the use of bio-based raw materials in the production of binders. The portfolio also includes VAE-based binders for preservative-free applications in the paints and coatings segment. Moreover, in tile laying, we are helping to cut cement consumption and thus reduce carbon emissions through the switch from thick-bed to thin-bed techniques. Our dispersions make a further contribution to energy-efficient building and living by enabling the manufacture of durable, high-quality external thermal insulation composite systems that improve the energy efficiency of buildings, thus helping reduce carbon emissions and bring down energy costs.

The pharma and food markets offer growth potential for WACKER BIOSOLUTIONS. The pharma market is steadily shifting toward bioengineered medicines. As a contract development and manufacturing organization (CDMO) for biologics, we are meeting growing demand through our sites in Jena, Halle, Amsterdam and San Diego. In the biologics segment, we are systematically expanding our mRNA-based therapeutics. At our Amsterdam site, we have been building up expertise since 2020 and are already producing mRNA-based actives. At the San Diego site we acquired in 2021, we produce plasmid DNA (pDNA) – the starting material for mRNA actives and other innovative therapeutic agents, such as nucleic-acid-based gene therapies and viral vectors. We are also developing a process for making lipid nanoparticles – another essential component in the production of mRNA-based actives. We are transforming our Halle site into an mRNA competence center and focusing our expertise in this segment there. 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. Among other things, we are currently working on a process for fermentation-generated biotin. We also offer solutions for making meat substitutes – 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. Our cyclodextrins also play an ever greater role in the formulation of active ingredients. For example, they enhance the bioavailability of curcumin. We are also registering growing interest in cyclodextrins to improve the foam properties of conventional and plant-based milk.

In the coming years, demand for high-quality polysilicon will continue to climb in both the semiconductor and 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 POLYSILICON 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 the German Mechanical Engineering Industry Association (VDMA), by 2032 more than 70 percent of all silicon wafers will be manufactured using this technology. 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. Programs in the USA and Europe to strengthen the photovoltaic industry in the respective local regions are likely to have an additional positive impact on demand for polysilicon.