The WACKER Group’s Prospects

Our scenario assumes that the global economy will grow slightly in 2026. The speed of growth will depend, among other things, on the further course of the current geopolitical conflicts, and on the future tariff policies pursued by individual countries. We expect the strongest growth impetus to once again come from Asia in 2026.

Capital expenditures and production

WACKER systematically pursues its strategic priorities and launches investment projects in line with these priorities. Our capital expenditures in 2026 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 2026 will, for example, be on setting up a new site in Karlovy Vary (Czech Republic) to expand the production of specialty silicones.

Future products and services

The Silicones business division is concentrating its product development mainly on the following focus markets: electromobility, health, the energy transition, digital transformation and sustainable building. In the digital transformation focus field, WACKER has begun series production of prefabricated silicone laminates. These enable the manufacture of flexible sensors for robotics, the automotive industry and medical technology. WACKER is driving forward the development of thermally conductive silicone compounds for use in the electromobility segment. The focus is on heat-resistant gap fillers and structural adhesives for attaching battery modules. WACKER is also using innovative solutions to make EV batteries safer. Halogen-free flame retardants, silicone resin-based fire-protection mats made of carbon fiber, and ceramifying silicone coatings for busbars improve fire and passenger protection in electric cars. New ultra-lightweight fillers made from spherical silicon are attracting considerable interest, too. They are being developed for the production of thermal interface materials for the aerospace and drone industries. Silicones have been gaining ground in electricity grid expansion projects for years now. Specialty solid silicone rubbers enable more efficient and cost-effective production of composite insulators. In the healthcare sector, WACKER is now offering silicone gels for transdermal patches. They can be used to store over-the-counter therapeutic agents such as ibuprofen, herbal remedies or active ingredients for health-spa applications, releasing these agents on to the skin in a controlled manner. In addition to silicone-based products, WACKER is now offering emulsifiers and additives made from plant-based or fermented substances for skin and hair care. Sustainable building and packaging materials are in demand in the building-materials industry. This is why WACKER, a leading manufacturer of bio-based silicone sealants, supports the recycling of silicone cartridges.

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. 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. The use of our products makes building materials more resistant, resulting in less damage and a lasting reduction in resource consumption. 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. 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. We are also developing media proteins that are used to produce cultivated 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 projects to this end, among them our new etching facility “Etching Line Next” for cleaning semiconductor-grade polysilicon in Burghausen. In the year under review, initial quantities were already shipped to customers. We stepped up the Quality LeaP (Quality Leadership in Polysilicon) project 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. Only a few companies other than WACKER are capable of manufacturing such hyperpure polysilicon.