Wacker Chemie expands silicone business with new production site in Czech Republic

German silicone manufacturer Wacker Chemie AG is set to significantly expand its silicone specialties business by establishing a new production site in Karlovy Vary, Czech Republic. This strategic move, driven by the growing demands of electromobility and renewable energy sectors, represents a substantial investment in the low triple-digit million euro range.

Meeting the Demands of Megatrends with New Production Facility

The decision to build this new site comes as Wacker Chemie AG seeks to meet the increasing global demand for silicones, fueled by megatrends like electromobility and the expansion of electricity grids. The Karlovy Vary facility will complement the company’s existing production sites in Burghausen and Nünchritz, Germany, and Pilsen, Czech Republic, specializing in electromobility-related products.

Christian Kirsten, a member of WACKER’s Executive Board, emphasized the importance of this expansion. “Karlovy Vary will play a crucial role in our European silicone activities, particularly in producing customized silicone compounds. This expansion will enhance our production efficiency and flexibility across our integrated system of four locations,” he stated.

Karlovy Vary to Host Wacker Chemie AG’s New Silicone Specialties Facility. Photo courtesy of WACKER.

Focus on Specialty Silicones and Job Creation

The new facility in Karlovy Vary will primarily produce room-temperature-vulcanizing specialty silicones, with plans to add high-temperature-vulcanizing compounds later. Production is scheduled to begin by the end of 2025, and WACKER anticipates creating approximately 200 jobs by 2028, with further employment opportunities expected in subsequent years. Once fully operational, the site aims to supply over 20,000 metric tons of custom-made silicones annually.

Strategic Synergy in WACKER’s Production Network

Thomas Koini, president of WACKER SILICONES, highlighted the strategic benefits of this expansion. “By consolidating our compound production capacities in Karlovy Vary, we can enhance the efficiency of our plants in Burghausen and focus our Pilsen site on the growing demand for silicone gels and thermally conductive silicones,” he explained.

WACKER’s partnership with US real estate developer Panattoni and Czech real estate group Accolade for the construction of the new site marks a significant step in the company’s growth strategy. The commencement of development work and construction, slated for the second quarter of 2024, signals a new era of innovation and development for Wacker Chemie AG in the field of silicone specialties.