Wacker Chemie | Strategy and Financial Highlights Information from ICIS

Edited from: “Wacker expects new sales and earning records for 2008”, “Wacker to further expand polysilicon production capacity” and company website.

Wacker Chemie will look to 2009 with a continued strategic focus in technologically advanced products and solutions that will assist its customers in optimising business. Another strategic focus for Wacker includes innovative applications and dynamic markets offering above-average growth prospects.

The company also plans to invest €760m ($1bn) to build a 10,000 tonnes/year polysilicon plant at its Nunchritz site in Saxony, Germany. The new plant at Nunchritz is expected to reach full capacity by the end of 2011.

Wacker is also expanding the capacity at its plant in Burghausen, Bavaria. The project will increase capacity by 3,000 tonnes/year to 10,000 tonnes/year.

With the additional capacities, Wacker’s overall polysilicon capacity is expected to reach 35,500 tonnes/year by the end of 2011, compared with its current capacity of 10,000 tonnes/year.

For coming years, Wacker anticipates continued double-digit annual growth in polysilicon demand by the solar-industry. The company likewise expects higher polysilicon demand from the electronics industry.

“We expect crystalline solar technology to show continued strong growth and customer demand for polysilicon to remain high”, says chief executive officer, Rudolf Staudigl.

Looking ahead, Wacker believes it is “firmly on course” to achieve its forecast goals despite the overall economy’s uncertainties and risks. It expects its full-year 2008 forecast and anticipates sales growth of above 10% compared to 2007. It also believes that its earnings before interest, tax and amortisation (EBITDA) should increase, too.

In making this forecast, the company expects seasonal and demand-related factors to lead to weaker Q4 2008 business, except at its Wacker Polysilicon segment. In this segment, Wacker anticipates a continued strong performance.

“The sustained strength of our polysilicon business is a major earnings driver”, says Staudigl.

“Wacker remains firmly on course to achieve its forecast goals despite the overall economy’s uncertainties and risks”, continues Staudigl.

Wacker sees “outstanding” long-term growth potential in its product portfolio that it intends to “decisively utilise”. Next to the continuation and completion of strategic growth projects already in progress, Wacker will further focus on production-capacity expansion at Wacker Polysilicon and measures for ensuring its semiconductor business’s ongoing profitability, as well as continuous optimisation of its global position, cost situation and chemical-segment capacity utilisation. Wacker views these as key prerequisites for continued long-term profitable growth.

By 2010, the company believes that Wacker Polysilicon will have “virtually tripled” its production capacities for polysilicon. Wacker says that although challenging to manufacture, this material is the basis of the semiconductor and solar sectors. In its Siltronic division it is currently expanding 300mm wafer production and consequently intends to more than double its capacities by 2010 (including its joint venture in Singapore).

Please also see Wacker plans new site strategy, structural changes; cuts 800 jobs on ICIS news.

ICIS Chemical Business magazine has unveiled the ICIS Top 100 Chemical Companies, with rankings based on 2008 sales.

A PDF of the ICIS Top 100 Chemical Companies is available for download on ICIS connect.

See the article and analysis of the ICIS Top 100 on ICIS news.

Financial highlights: Wacker, year ended 31 December

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Wacker Chemie Company Structure

Wacker-Chemie is an international chemical company. The company was founded in 1914. In April 2006, Wacker completed an initial public offering (IPO) of the company. In August 2005, the Wacker family gained 100% ownership of Wacker-Chemie following its purchase of Hoechst's 44.4% holding in the German specialty chemicals company. On 25 November 2005, Wacker Chemie completed its conversion from a private limited company into a stock corporation.
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