Wacker Chemie AG announced this week that it will further expand its business influence in the Asian market by establishing two dedicated silicone production facilities in Japan and South Korea to meet the growing demand for specialized silicone in the automotive and construction industries. The expansion of production capacity this time, with Wacker injecting millions of euros, demonstrates the company's high attention and firm confidence in the Asian market.
The new factories are located in Tsukuba, Japan and Jincheon, South Korea. Christian Kirsten, director and head of the silicone business at Wacker, said at the opening ceremony, "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
The capacity expansion of the Tsukuba production base is mainly aimed at the automotive industry, especially in the field of electric vehicles. The new factory is equipped with a production line for Organic Silicon Thermal Interface Materials (TIM), which are mainly composed of organic silicon elastomers. Various additives and fillers are used for modification during the compounding process to achieve excellent thermal conductivity. These thermal interface materials are not only suitable for the automotive industry, but 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 to ensure effective heat dissipation during operation and avoid overheating.
In Asia, where the global trend towards electrification is evident, the demand for specialized organosilicon is increasing day by day. Japanese car suppliers are investing heavily in this field, seeking opportunities to improve the design and performance of electric vehicles. With the Tsukuba production line, Wacker can better meet Japan's demand for high-end silicone. As a joint venture between Wacker and Asahi Kasei, Wacker Asahi Kasei Organic Silicon Co., Ltd. (AWS) is responsible for the production of specialized organic silicon in Tsukuba. In addition, Wacker also operates a technology center and a silicone application training center in Tsukuba, dedicated to technological innovation and talent development.
At the same time, Wacker has also expanded its production capacity at its production base in Jincheon, South Korea. Since 2010, the base has been producing silicone sealants for the construction industry, and since 2012, it has been producing specialized silicone, liquid silicone rubber, and silicone elastomers for the automotive and electrical industries, with customers throughout Asia. After the factory relocation in 2018, although the production capacity of silicone sealant was increased, it quickly became unable to meet the growing demand for sealant in the market. The establishment of this new production line will significantly increase the production capacity of the Zhenchuan production base.
Christian Kirsten, a director of Wacker, emphasized, "This significant investment will help ensure that Wacker meets the growing demand in Asia in the long term. Through this initiative, we will further consolidate Wacker's position as the market leader in high-quality silicone sealants in Asia. Currently, Zhenchuan has become one of the largest, most modern, and efficient silicone sealant production bases in Asia
The Asian market has become one of the most important sales regions for Wacker. Angela W ö rl, Director and Head of Business for Asia at Wacker, said, "Our sales in Asia account for over 40% of the group's total sales, with Japan and South Korea performing the best. 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
Through this capacity expansion, Wacker Chemie not only enhances its competitiveness in the Asian market, but also provides global customers with higher quality and more efficient organic silicon solutions. In the future, Wacker will continue to be committed to technological innovation and market expansion, promoting the sustainable development of the silicone industry.