On April 2, Wacker chemical group, headquartered in Munich, announced that its sales in China reached a record 1.79 billion euros in 2021, a significant year-on-year increase of 75% compared with 1.02 billion euros in 2020.
It is reported that this achievement is mainly due to the strong product portfolio of the company, which is in line with the trend of accelerating China's development to low carbon and the rising price of most products. With a new round of investment projects, wacker's revenue in Greater China is expected to continue to grow in 2022.
Wacker's four business units have achieved at least double-digit sales growth. With high-quality products for high-efficiency Cecep Solar Energy Co.Ltd(000591) batteries and semiconductor applications, wacker's polysilicon business is particularly strong due to strong customer demand, tight market supply and obvious price rise, especially Cecep Solar Energy Co.Ltd(000591) grade polysilicon. Other Wacker products that can contribute to China's sustainable development and decarbonization goals have also achieved rapid growth, such as silicone for electric vehicles, wind energy and ultra-high voltage power transmission and distribution, polymer rubber powder for thin paste ceramic tile adhesive and exterior wall external insulation system, and biological component products for the food industry.
"In addition to wacker's sustainable product portfolio, the company's remarkable achievements are also due to the effectiveness of our 'for China in China' strategy." Lin Bo, President of Wacker chemical (China) Co., Ltd. Over the past few years, from R & D to production and then to comprehensive services, Wacker has continuously created an all-round force for the Chinese market in China. By the end of 2021, Wacker had invested more than 730 million euros in China. "In order to accelerate the pace of development, Wacker plans to carry out a new round of investment projects in China. The capital expenditure in the next five years is expected to exceed half of that in the past 20 years." Limbo added.
At present, Wacker is building new emulsion reactor and spray dryer for redispersible latex powder in Nanjing production base. The emulsion reactor is scheduled to go into operation in the second half of this year, and the spray dryer will be put into operation in 2023. The demand for high-quality polymer products from modern construction companies in China will more than double, especially in the Chinese construction industry.
In October 2021, Wacker reached an agreement with Shandong Sike new materials Co., Ltd. (Shandong Sike), one of China's leading special silane manufacturers, to acquire 60% of its equity. Through cooperation with Shandong Silicon Technology Co., Ltd., Wacker will be able to further expand the types of high-quality special products provided for the Chinese market. After obtaining the approval of government regulators and passing the antitrust review, the € 120 million transaction is expected to be completed in the first half of 2022.
In addition, Wacker is also considering and evaluating further expanding the production capacity of a series of silicone downstream products in Zhangjiagang production base. These ambitious investment plans are designed to meet the growing needs of customers in the future, so Wacker is confident of sustained growth in China.
