On October 27, 2021, Wacker, a chemical group headquartered in Munich, invested about 120 million euros to acquire 60% of the shares of Shandong silico new materials Co., Ltd. (Shandong silico), a special silane manufacturer in Jining, China. The two sides signed relevant agreements today. The whole transaction is expected to be completed in the first half of 2022 after being approved by the government regulatory authorities and passing the antitrust review.


"Our new partnership with Shandong silicon technology is another measure for us to continue to implement the strategy of further expanding the share of high-profit special products in wacker's global silicone business," said Christian Hartel, President and CEO of Wacker. "Shandong silicico is a leading manufacturer of organic functional silane in China. Organic functional silane is an important component of high-efficiency adhesives, sealants, coatings and composites. Wacker also has decades of rich experience in this field. But so far, we only produce organic functional silane in Germany. Through the equity acquisition of Shandong silicico, we can make progress Further expand the types of high-quality special products provided for the Asian market, and be closer to our customers in the fast-growing Asian consumer market.


Founded in 2013 and located in Jining new material industrial park in Shandong Province, China, Shandong Silicon Technology Co., Ltd. produces many organic functional silanes which are widely used in construction, automobile manufacturing, semiconductor, electronics and other industries. In the past few years, Shandong Silicon Technology Co., Ltd. has achieved strong growth, strong profitability and positive cash flow. Shandong Silicon Technology Co., Ltd. will be in full operation in 2020 The annual sales volume was 54 million euros.


Qu Yuan, chairman of Shandong silicon technology, said: "we are very pleased to reach a partnership with Wacker. Wacker is one of the world's leading market and technology leaders in the field of silicone. Through cooperation with Wacker, we can further expand our special silane product portfolio."


Wacker's equity acquisition is funded by the cash flow generated from Wacker's operating activities. As the transaction is a majority equity acquisition, Wacker will consolidate 100% of the company into the financial statements of Wacker group after the transaction is completed.