Wacker Chemie to increase investment in China by $262m

Wacker Chemie AG, a key producer and technology leader in polymers and silicones, said on Friday it plans to increase its 10-year investment in China by 200 million euros ($262 million) over the next four years.

"The new investment will be used to enlarge existing production facilities and expand production capacities," said Rudolf Staudigl, president and chief executive officer of Wacker, at the opening of its new China headquarters in Shanghai.

The center, located at Caohejing Hi-Tech Park and covering an area of 10,000 square meters, features numerous laboratories for R&D and applications technology.

Wacker kicked off its 10-year investment plan in 2006, and to date investments in China have reached around 400 million euros.

It has two technical centers and four production sites. Its facility in Nanjing, Jiangsu province, manufactures binders mainly for construction, adhesives and coatings industries, and its facility in Zhangjiagang produces silicone polymers and fluids.

Wacker generated sales of 1.03 billion euros from the Chinese market last year, or about one-fifth of the group total.

To meet growing demand, Wacker is currently doubling its production capacity in Nanjing to 120,000 tons yearly for paints, coatings and adhesives.

It is also building a new polyvinyl acetate plant there with an annual production capacity of 20,000 tons. Both plants are scheduled to come on stream next year, Staudigl said.