Strategy at Each Business Division
(ESRS 2.42 a, b, c)
At Silicones and Polymers, our two chemical divisions, sales growth is to accelerate. At the same time, profitability is to continue rising. The planned EBITDA margin is 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, we are expanding capacity in the local regions and markets where our customers do business. In doing so, we focus on sustainable solutions. On the one hand, we are developing products that enable our customers to implement more sustainable technologies. At the same time, we are working on improving the sustainability of our own products.
The Silicones division continues to systematically pursue its specialty chemicals strategy, focusing on high-margin growth markets. This approach centers on strengthening customer proximity in the regions with the help of technical services and local development of customized customer solutions. This strategy is underpinned, among other things, by the acquisition of a majority stake in the Chinese specialty silanes manufacturer SICO Performance Material. With the construction of a new production site at Karlovy Vary in the Czech Republic, WACKER is strengthening its strategic focus on silicone specialties in Europe. The growth priority is tomorrow’s markets, such as electromobility and renewable energy generation, where silicones are essential. Another point of focus is developing sustainable products through carbon-footprint reduction, for instance, or the use of renewable raw materials.
At Polymers, we are supporting future market growth worldwide. Polymers’ focus is on tomorrow’s sustainable construction market, where its products are making a significant contribution. To this end, WACKER is investing, for example, in expanding capacity for vinyl-acetate-ethylene (VAE) dispersions at Calvert City, USA. The portfolio for sustainable product solutions, including those based on renewable raw materials, is being continuously expanded. The same applies to customer-specific solutions.
The Biosolutions division 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 should exceed 25 percent. This strategy is focused on the business with biopharmaceuticals. The Halle site has been expanded to create an mRNA competence center. The division’s second pillar is fermentation-based manufacturing of high-quality ingredients for various end markets, such as nutritional supplements, cosmetics and pharmaceuticals. In this respect, WACKER acquired the company ADL BioPharma S.L.U. in León, northern Spain, in 2023. The plan is to expand the division’s product portfolio with internal innovation, partnerships and further acquisitions.
At Polysilicon, the EBITDA margin should rise above the 30-percent mark by 2030. ROCE is to be more than twice the cost of capital. Polysilicon wants to continue strengthening its position in the semiconductor industry, in particular. The share of hyperpure semiconductor-grade polysilicon in the division’s total output will continue to rise. At Burghausen, WACKER is investing in a cleaning line that will increase cleaning capacity for hyperpure semiconductor-grade polysilicon by more than 50 percent. Polysilicon’s products address the markets of tomorrow that are key to sustainable transformation. At the same time, the division is continuously improving its own products’ sustainability.
