Beijing,April24,2018WACKER,theMunich-basedchemicalgroup,posteditsannualfigureswithoutSiltronicforthefirsttime.WACKERGreaterChinaachievedexcellentresultsin2017,contributingsignificantlytotheGroupsoverallperformance.Amidrisingdomesticconsumption,WACKERgeneratedannualsalesinChinaofeuro;1.2billionin2017,upbyabout10percentcomparedwitheuro;1.1billiontheyearbefore.At20percent,salesgrowthforspecialtyproductswasparticularlyrobust.SpurredbyChinasincreasinglivingstandardsandbyothermegatrendssuchasthenationwideindustryupgradeandgreeninitiatives,WACKERGreaterChinaexpectsfurthergrowthin2018andintendstoenhancelocalRDcapabilitiesandexpanditsdownstreamcapacities.

In2017,WACKERGreaterChinapostedcontinuedgrowthinbothchemicalsandpolysilicon.WACKERSILICONES,oneoftheWACKERsthreechemicaldivisions,generatedstrong,broad-basedsalesinChinaforspecialtyproducts,especiallyinconsumergoodsandintheautomotiveandconstructionindustries.Thehighersalespricespartiallyhelpedoffsetshortsupplyforstandardproducts.WACKERsaimistocontinueraisingtheproportionofitssalesaccountedforspecialtyproducts,withhighgrowthexpectedfromproductsforelectricvehicles,forexample.

WACKERPOLYMERSexperiencedstrongvolumegrowthfromvinylacetate-ethylene(VAE)dispersionsanddispersiblepolymerpowderin2017,bothofwhichbenefitedfromgrowingdemandforenvironmentallyfriendlymaterialsandfromthemarkettransformationtohigh-qualityproductsandproductshelptoenhanceproductivity.In2018,thedivisionexpectstogeneratemoderategrowthintheconstructionandindustrialapplications,withpressureanticipatedfromacceleratingraw-materialprices.

AtWACKERBIOSOLUTIONS,thedivisionsproductqualityandreliabilityexpandeditspresenceinChinasgummarket.Atthesametime,WACKERsnaturalfermentedproductgradessatisfiedrisinglocaldemandforhealthy,functionalandtastyfood.Thedivisionanticipatesfurthergrowthin2018thankstoinnovativeproducts.TheseincludethenewCANDY2GUMboilingprocess,CAVACURMIN(ahighlybioavailablecurcumin),andcyclodextrinproductsasthesustainablesolutionsforpharmaceuticals,agrochemicalsandcoatings.

WACKERPOLYSILICONlifteditssalesfurtherin2017asnewlyinstalledphotovoltaic(PV)capacitiesincreasedinChinaandacrosstheglobe.PVhasbecomeanincreasinglycompetitivepowersourcethankstoitslowerlevelizedcostofenergy(LCOE).Asaleaderinquality,cost,customerproximityandapplicationsupport,WACKERPOLYSILICONexpectsitsvolumestoclimbcontinuouslyin2018,thankstorisingglobaldemandforhigh-qualitymaterialsalongwiththerapidgrowthofmonocrystallinePV.

2017wasanotherverysuccessfulyearforWACKERinChina.LivingstandardsinChinacontinuetorise,whichisboostingdemandforthehigh-qualityproductswesupply,saidPaulLindblad,presidentofWACKERGreaterChina.Moreover,wearealsobenefitingfromChinasdeterminedeffortstoprotecttheenvironmentanddevelopsustainably.RisinglivingstandardsandtheongoingtransformationofindustrywillfuelWACKERGreaterChinasfurthergrowthin2018.

Tosupportthemegatrendstransformingindustryandconsumerdemand,WACKERissteppingupinvestmentsinbothinnovationandproduction.WACKERhasdoubleditsVAE-dispersionRDsynthesiscapacity,launchinganewlabinShanghaiinMay2017.WACKERsongoingexpansionofitssiliconeRDlabandtheinstallationofanewfoodapplicationlabarebothdueforcompletionbytheendof2018.Tobettersupportlocalandglobalcustomersinthefieldofelectricvehicles,WACKERisalsobuildingane-mobilitycompetencecenter.BasedinShanghai,itincludesadedicatedRDlabandprojectteam.

Inaddition,WACKERhasinvestedovereuro;600,000inpilotfacilitiesinZhangjiagangtoacceleratesiliconeinnovation(fromthelabthroughtolarge-scaleproduction)andtooptimizeproductionprocesses.WACKERwillusethesefacilitiestodevelopnotonlyadhesivesandsealantsforconstructionandindustrialapplications,butalsoelastomers,particularlyfortheenergyandelectronicsindustries.Thenewpilotfacilitieswillcomeonstreamsuccessivelysincesecondhalfof2018.

Giventhegrowthindemand,NanjingsVAE-dispersioncapacityissettoincreasebyafurther30,000metrictonsinthesecondhalfof2018,whilesilicone-elastomercapacityatZhangjiagangwillexpandbyseveralthousandmetrictonsinthesameperiod.

WewereencouragedbyPresidentXisspeechattheBoaoForumaboutChinaseconomyopeningupfurther,saidPaulLindblad.GivenChinasstrongsupportfortrade,itsincreasedeffortstoprotectintellectualpropertyrightsandthemoreattractiveinvestmentenvironment,weareconfidentthatWACKERwillcontinueinvestinginlocalRDandproductioncapabilities,growingtogetherwithChinaasthecountryentersitsnewera.