This week, Wacker Chemie AG established two dedicated silicone production facilities in Japan and South Korea, further expanding Wacker's business influence in the booming Asian market. The new factories located in Tsukuba, Japan and Bucheon, South Korea will meet the growing demand for specialized organosilicon in the automotive and construction industries. For this capacity expansion, Wacker has invested millions of euros. With the expansion of Wacker's production facilities in Japan and South Korea, we will further consolidate Wacker's position as a market and technology leader in high-quality silicone solutions in the thriving Asian market, "said Christian Kirsten, Wacker's director and head of silicone business, at the opening ceremony." The new production capacity will help Wacker meet the growing market demand, especially in the local automotive and construction industries. With this opportunity, we will continue to promote our specialized product strategy in the silicone field. Asia has become one of Wacker's most important sales regions. Our sales in Asia account for over 40% of the group's total sales, with Japan and South Korea showing the most impressive performance, "emphasized Angela W ö rl, director and regional business leader of Wacker." The construction of new production facilities in Tsukuba and Zhenchuan is to implement Wacker's corporate strategy of continuously strengthening our manufacturing capabilities in specific regions
The capacity expansion of the Wacker Tsukuba production base is mainly aimed at customers in the automotive industry, especially in the electric vehicle sector. The new factory has a production line for organic silicon thermal interface materials (TIM), which are mainly organic silicon elastomers. Various additives and fillers are used for modification during the compounding process to obtain thermal conductivity.
In addition to the automotive industry, organic silicon thermal interface materials can also be used as sealants in the electronics industry, providing efficient thermal management for electronic components. For example, electric vehicle batteries are embedded with silicone encapsulation adhesive, which ensures effective heat dissipation during operation and avoids overheating of the power battery. As a global hotspot for electrification, Asia's demand for specialized organosilicon is expected to increase day by day. Japanese car suppliers are currently investing heavily in this field. The industry has been seeking opportunities to improve the design and performance of electric vehicles, and innovative solutions based on organic silicon materials can create hybrid cable systems, improve battery safety, achieve efficient thermal management, and effective encapsulation of power electronic devices, empowering and increasing efficiency for many applications. With the Tsukuba production line, Wacker can better meet Japan's growing demand for high-end organic silicon, "said Christian Kirsten, a director of Wacker. Wacker Asahi Silicones Co., Ltd. (AWS) is a joint venture established in 1999, responsible for the production of specialized silicones in Tsukuba. Wacker also operates a technology center and a silicone application training center in Tsukuba.
Wacker has also expanded the production capacity of its Zhenchuan production base in South Korea. This production base has been producing silicone sealants for the construction industry since 2010, and specialized silicone, liquid silicone rubber, and silicone elastomers for the automotive and electrical industries since 2012. Customers are located throughout Asia.
With the relocation of the factory in 2018, the production capacity of silicone sealant at the base was also expanded, but soon it could not meet the growing demand for sealant in the market. The establishment of this new production line will significantly increase the production capacity of Zhenchuan. This significant investment will help ensure that Wacker meets the growing demand in Asia in the long term, "said Christian Kirsten, a director of Wacker." Through this initiative, we will further consolidate Wacker's position as the market leader in high-quality silicone sealants in Asia. Currently, Zhenchuan is one of the largest, most modern, and efficient silicone sealant production bases in Asia