Wacker Chemie AG is gearing up to enhance its silicone specialties segment by establishing a new production facility in Karlovy Vary, Czech Republic. This initiative is part of a broader strategy to restructure its production footprint in Europe. The decision to build this new site is propelled by the growing demand in megatrends like electromobility and renewable energies, which heavily rely on Wacker's silicones. The production at this new facility is anticipated to commence by the end of 2025, with the initial phase of the project expected to generate up to 200 jobs. The investment is projected to be in the lower range of hundreds of millions of euros.
The Karlovy Vary site will supplement Wacker's existing production hubs in Germany, specifically in Burghausen and Nünchritz, and the Pilsen site that focuses on electromobility. "Karlovy Vary is set to become a key component of our silicone operations in Europe, especially for custom silicone compounds," says Christian Kirsten, a member of the WACKER Executive Board. "This new site will enable us to optimize our production processes and enhance flexibility across our integrated production network spanning four locations. Our customers will benefit from tailored, high-efficiency, and top-quality product solutions," he adds.
Specialty silicones from WACKER are increasingly sought after in the automotive industry, particularly in the electromobility sector, for applications in electric motors, power electronics, batteries, sensors, and displays. The expansion in these areas is driven by trends in electromobility, renewable energy, and electrical grid development. "Our silicone rubber grades are critical in all major growth markets," Kirsten notes. "Custom silicone elastomers are essential where traditional materials fail to meet the increasingly stringent demands. To sustainably meet this rising demand, we're laying the foundation now."
At the new Karlovy Vary facility, the focus will initially be on producing room-temperature-vulcanizing specialty silicones, with production scheduled to start at the end of 2025. Plans also include the future production of high-temperature-vulcanizing silicone compounds. WACKER aims to invest a substantial sum in the lower range of hundreds of millions of euros and create about 200 jobs by 2028, with additional staffing expected in subsequent years. Once fully operational, the facility will produce over 20,000 metric tons of custom-made silicones annually.
The production will involve mixing raw materials like polymers, fillers, and additives, sourced from Burghausen, to create ready-to-use silicones or compounds in Karlovy Vary. “This consolidation of our compound production capabilities in Karlovy Vary will enhance the efficiency of our continuous plants in Burghausen and expedite our process automation plans,” states Thomas Koini, president of the WACKER SILICONES business division. “Additionally, our Pilsen site will now focus on the burgeoning market for silicone gels and thermally conductive silicones, especially demanded in the electromobility sector, benefiting our existing plants as well.”
In collaboration with US real estate developer Panattoni, WACKER is advancing the construction of the new site in Karlovy Vary. Development efforts are set to start soon, with construction expected to begin in the second quarter of 2024, pending regulatory approvals. The 23,000-square-meter site, owned by Czech real estate group Accolade, will house the new production building on the outskirts of Karlovy Vary.
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