The WACKER Group’s Prospects

Our scenario assumes that the global economy will grow slightly in 2024. The speed of growth will depend, among other things, on the further course of the current geopolitical conflicts, with their negative impacts on the global economy. We expect the strongest growth impetus to once again come from Asia in 2024.

Capital Expenditures and Production

Our capital expenditures in 2024 will be focused mainly on production plants for intermediates and downstream products. Capital expenditures will be slightly below the prior-year level. WACKER SILICONES will account for the largest share of investment spending. Its investment projects include the expansion of capacities for specialty silicones at the sites in Nünchritz (Germany), Zhangjiagang (China) and Karlovy Vary (Czech Republic). One of the projects under way at WACKER POLYMERS involves expanding its capacity for VAE dispersions in Calvert City, USA. WACKER POLYSILICON is expanding its semiconductor-grade polysilicon production capacity in Burghausen. At WACKER BIOSOLUTIONS, a competence center for mRNA actives will go on stream in Halle.

Future Products and Services

WACKER SILICONES is concentrating its product development mainly on the following focus markets: electronics, automotive applications, health, and renewable energy sources. In our electronics focus field, we are working on several product innovations. Current examples include printable elastic electrode materials for sensors and actuators; and resin-filled, optically transparent systems for optical bonding applications. In the chip industry, there is strong demand for our electronic chemicals as processing auxiliaries. We see significant growth potential in today’s soaring demand for silicone rubber grades, silicone resins and thermal gap fillers in the health and automotive sectors. As regards electromobility, 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-resin-based fiber composites,

which enhance fire safety in electric vehicles. In the field of alternative approaches to mobility, we are active in fuel-cell engineering, for which we supply precision films. In the field of health, we are developing novel silicone elastomer gels for the cosmetics industry; these gels are based on a new formulation approach using organic oils. Renewable energy sources represent another of our focus markets. Our silicones play an extremely vital role not only in energy generation, but also in power and transmission engineering. Our silicone-based heat transfer fluids – for concentrated solar thermal power recovery and the generation of industrial process heat – are another promising product. Our silane-based cement additives are in demand in the construction sector. 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 therefore lend themselves to outdoor applications, too.

WACKER POLYMERS continues to intensify its activities in polymeric binders for sophisticated construction, coating and bonding applications. The division expects to see rising demand for high-performance products for the renovation and refurbishment of buildings. This trend is being driven by numerous government programs around the world, such as the European Green Deal and China’s plan to achieve net zero by 2060. What is more, rising prosperity levels in a large number of emerging markets is reviving demand for high-quality living. In particular, WACKER POLYMERS is actively responding to growing demand among customers for environmentally friendly and sustainable solutions by developing appropriate product lines and sustainable formulations hand-in-hand with its customers. 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. In order to increase the use of renewable raw materials, we design our production processes according to the mass balance approach. These products are part of our VINNAPAS^® eco product 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. Our dispersions and dispersible polymer powders make external thermal insulation composite systems (ETICS/EIFS) more durable and of a higher quality, improving the energy efficiency of buildings by helping to reduce carbon emissions and bring down energy costs. The global trend toward laying large tiles is increasing the demand for the sort of high-quality adhesives that WACKER POLYMERS supplies the ingredients for. 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. Demand for WACKER POLYMERS products is set to increase in the renewable energy sector as well: VINNAPAS^® solid resins are used in the production of composite materials for wind turbine rotors.

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 sector, we are specifically expanding the area of advanced medicines, including mRNA-based therapeutics. We produce mRNA-based active ingredients, as well as lipid nanoparticles, components in the production of mRNA-based actives, at our Amsterdam site. At our San Diego site, we produce plasmid DNA (pDNA) – the fundamental starting material for mRNA production, but also for other innovative therapeutic agents, such as nucleic-acid-based gene therapies and viral vectors. We are currently expanding our site in Halle to create an mRNA Competence Center that will go into operation in 2024. 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, focusing primarily on bio-based starting materials. 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 order to leverage the potential of modern microchips, the semiconductor industry needs ultrapure polysilicon. WACKER POLYSILICON has initiated several research projects to this end. Some involve the production line currently under construction at the Burghausen site, where semiconductor-grade polysilicon will now be produced. We stepped up the Quality LeaP (Quality Leadership in Polysilicon) project in the year under review to expand quality control. The type of pure polysilicon to be produced will also enable the production of 3-nm chips or smaller for computer applications in the field of artificial intelligence for data centers and for autonomous driving. The same also applies to solar modules: high cell efficiencies are attainable only with hyperpure polycrystalline silicon. Reference studies such as the International Technology Roadmap for Photovoltaics (ITRPV) show efficiencies that now exceed 23 percent for monocrystalline solar cells produced with PERC (passivated emitter rear cell) technology. Heterojunction or interdigitated back-contact solar cells achieve efficiencies of over 24 percent. High-performance segments like these need polysilicon of the highest quality. WACKER POLYSILICON meets the growing demands of the solar industry for quality by continually developing its manufacturing processes. What is more, the division is a member of the Ultra Low-Carbon Solar Alliance (ULCSA), which advocates for the use of photovoltaic components with a low carbon footprint.