Wacker aims to increase global silicone capacity

Munich — Wacker Chemie AG has some welcome news for silicone rubber processors, saying that it will increase global capacity of the material over the next several years.

The company said on May 24 it would increase both LSR and HCR production "significantly."

Wacker has invested more than $107.3 million in the expanded capacity projects, which are set to occur at facilities around the globe, including one in Adrian, Mich. The investments are in concert with previously stated growth targets.

The company intends to increase growth in its chemical divisions by focusing on product specialties, especially silicone rubber product specialties.

"Silicones are high-performance materials," said Robert Gnann, head of Wacker Silicones business division. "They are essential for state-of-the-art product solutions and are among the innovation drivers in key industrial sectors such as automotive, electronics and medical."

Due to their product and processing benefits, demand for silicone rubber has grown significantly.

"Silicone rubber is strategic for us. As the world's second largest silicone manufacturer, we are committed to supporting this dynamic growth even more strongly in the future," Gnann said.

Wacker said more LSR "will be available the second half of this year, and will come into full effect in 2023."

It expects additional LSR capacity to originate from expansions in Burghausen, Germany, set for an end-of-year completion; and at a new, U.S.-based production facility in Adrian, Mich., with an eye toward the North and Central American markets.

Total global capacity increase for LSR was not known, nor was a timeline for the Michigan expansion.

"Investment projects to this end are either in the planning stage or are nearing completion," Wacker said May 24.

The company also plans to increase capacity on a global scale for HCR in Panagarh, India, the closest facility to beginning production, Wacker said. As well, sites in Pilzen, Czech Republic; and Tsukuba, Japan, are earmarked for expansions.

Though no permanent plans to increase capacity at these sites have been finalized, Wacker has hinted at additional expansion measures in Zhangjiagang, China; and Charleston, Tenn.

The company said it will increase its pyrogenic silica production, which can elevate the mechanical properties in silicone rubber, in Zhangjiagang.

A timeline for this expansion was not known.

Wacker produces pyrogenic silica at Burghausen; Nunchritz, Germany; Charleston, Tenn.; and Zhangjiagang, the company said, selling the additive and capturing it for its own use.

"Wacker returned to a growth trajectory last year," said CEO Christian Hartel. "We finished 2021 with record sales and strong earnings — despite headwinds from raw material and energy prices. We want to maintain this momentum and are charting our course for accelerated growth going forward. This is also true for our specialty chemicals business."

Wacker's silicone rubber portfolio comprises more than 1,000 products, including silicone fluids, emulsions, resins, elastomers and sealants to silanes, silane-terminated polymers and pyrogenic silica.

The company's silicone materials are used in automotive engineering, construction, chemicals, cosmetics, medical technology, energy and electronics and paper and textiles.