WACKER Realizes Double-Digit Growth in Greater China in 2014
SHANGHAI – WACKER, the Munich-based chemical group, posted annual sales of €1.22 billion in Greater China in 2014, indicating an increase of 14 percent compared with that of the previous year (€1.07 billion in 2013). The achievement was attributed to the overall macro-economic development of China and WACKER’s continuous investment in downstream facilities and research and development (R&D) in the country. WACKER expects to generate future growth in the region by further strengthening its innovation capabilities to offer tailor-made solutions for local market segments.
All five business divisions at WACKER realized growth in Greater China, contributing to the double-digit increase. Both Siltronic and the polysilicon business performed strongly with higher sales volumes due to flourishing market demand. As for chemical products, vinyl acetate-ethylene copolymer (VAE) dispersions and silicone elastomers delivered the best results. Technical innovation and newly developed products for the Chinese market significantly contributed to the growth of VAE dispersion operations. Thanks to China’s continuous investment in infrastructure and WACKER’s strength in specialty products, the silicone elastomer business grew rapidly in technology-intensive sectors, including high-speed trains, electronics, power transmission and medical applications.
“China is of strategic importance to WACKER. In 2014, over a quarter of our global group sales came from the region,” said Paul Lindblad, President of WACKER Greater China. “We expect continued grow of China’s economy in 2015. WACKER is confident that our business here will grow faster than regional GDP, as the rising living standards and environmental protection requirements stimulate the demand for the high-quality and environmentally sound products that we supply.”
On March 31, 2015, WACKER inaugurated its new polyvinyl acetate (PVAc) solid resins production plant in Nanjing, which is the largest of its kind in Asia and is certified to the highest food standards. In October 2014, WACKER also enlarged its silicone emulsion capacity by adding a new production line in Zhangjiagang, mainly for the personal care industry. In 2015, WACKER will further expand its production and logistic capacities. Dispersible polymer powder capacity in Nanjing will be doubled to 60,000 metric tons per year, and a new logistic center will be inaugurated in Zhangjiagang in the fall of 2015. In the future, WACKER will continue to expand its capacity for downstream products in both Zhangjiagang and Nanjing in order to further support the customers’ needs in the region.
“Our investments in China have demonstrated our commitment to the local markets and have laid a solid foundation for our future development in the country. Building on our well-established infrastructure, WACKER Greater China is currently shifting from quantitative growth to qualitative growth. In the future, we will further strengthen our R&D capabilities in China and continue to provide customized solutions to our valued customers,” said Paul Lindblad, President of WACKER Greater China.
Innovation is at the core of WACKER’s development strategy in China. In 2014, four new patents were granted and registered under the name of WACKER’s China entity, and the local R&D team’s importance in WACKER’s global innovation community is steadily increasing.
In 2015, WACKER Greater China expects to grow at a faster rate than China’s GDP by reinforcing its R&D capabilities and continuing to supply intelligent solutions to local customers. China is already the world’s largest market for chemicals, photovoltaics (PV) and consumer electronics, and these sectors are expected to keep growing.