The WACKER Group’s Prospects

Our scenario assumes that the global economy will grow slightly in 2025. 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 2025.

Capital expenditures and production

Our capital expenditures in 2025 will be focused mainly on production plants for intermediates and downstream products, alongside measures to optimize and maintain existing facilities. Capital expenditures will be considerably below the prior-year level. The Silicones division will account for the largest share of investment spending. The prime focus here in 2025 will be on expanding the site in Zhangjiagang (China) and on a new site in Karlovy Vary (Czech Republic) to increase production capacities for specialty silicones. One of the capacity-expansion projects at the Polymers division is for VAE dispersions in Calvert City, USA. At the Polysilicon division, we are expanding semiconductor-grade polysilicon capacity in Burghausen and will bring this new facility on stream in 2025. Biosolutions will be focusing on expanding its production capacities for fermentation-based manufacturing over the coming year.

Future products and services

The Silicones business division 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 electroactive silicone polymers made up of multiple layers for sensors and actuators; and resin-filled, optically transparent systems for optical bonding applications. In the chip industry, our electronic chemicals as processing auxiliaries are in demand. 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 silicone-based halogen-free flame retardants 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. Our silicones play an extremely vital role not only in energy generation, but also in grid expansion. Our silicone-based heat transfer fluids are another promising product. They are now being used as heat-transfer media in IT environments, for example to cool cloud servers, data centers and IT components. 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.

The Polymers division 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. What is more, the growing middle class in a large number of emerging markets is reviving demand for high-quality living and consumer goods. We are 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 our customers. For instance, Polymers 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. In addition, we continue to advance the use of bio-based raw materials in the production of binders. The division’s portfolio also includes vinyl acetate-ethylene-based binders for preservative-free applications in the paints and coatings segment. Polymers supplies high-performance binders for adhesives used in paper-based packaging solutions, supporting the shift from plastic to paper. Water-soluble binders used in adhesives in the timber and textile industries, for example in the production of shoes or furniture, are another area that we believe offers growth potential. 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. Polymers is also helping its customers formulate sustainable dry mortar by combining new forms of cement and specialty dispersible polymer powders. Demand for Polymers products is set to increase in the renewable energy sector as well: solid resins are used in the production of composite materials for wind turbine rotors.

The pharma and food markets offer particular growth potential for Biosolutions. 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 actives based on both mRNA and lipid nanoparticles at our Amsterdam and Halle sites. 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. 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. 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. Following the successful integration of our acquisition ADL Biopharma, WACKER is now very well positioned in the CMO market for precision fermentation. In this area, we offer production solutions for ingredients manufactured using fermentation.

In order to leverage the potential of modern microchips, the semiconductor industry needs ultrapure polysilicon. Polysilicon has initiated several research projects to this end, among them our new etching facility “Etching Line Next” for cleaning semiconductor-grade polysilicon in Burghausen. Initial quantities are expected in the second quarter of 2025. 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 chips with a design rule of 3 nm and smaller for computer applications in the field of artificial intelligence for data centers and for autonomous driving. Quality and purity are also important criteria for the solar industry. High cell efficiencies are attainable only with hyperpure solar-grade 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 p-type PERC (passivated emitter rear cell) technology. N-type TOPCon solar cells, heterojunction or interdigitated back-contact cells achieve efficiencies of over 25 percent. High-performance segments like these need highest quality polysilicon. Only a few companies other than WACKER are capable of manufacturing such products.