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Wednesday, 17 July 2019
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Markets & companies, Raw materials market

Wacker invests in new production site for silicone sealants in South Korea

Wednesday, 29 June 2016

Wacker Chemie AG is investing EUR16 million in a new production site for silicone sealants and specialty silicones in Jincheon, South Korea.

Growth on the silicone sealants market in Asia is exceptionally strong. Source: Wacker

Growth on the silicone sealants market in Asia is exceptionally strong. Source: Wacker

At the same time, existing production units in Jincheon will be transferred to the new site. Construction work will officially start end of July, production is expected to begin in the first quarter of 2018.

Asian market for sealants is growing

The new production site is located in Jincheon, roughly 100 km southeast of Seoul. "The Asian market for sealants and encapsulants is growing at an incredible rate,” noted Wacker Executive Board member Auguste Willems. "In order to meet increasing demand over the long term, we have decided to significantly increase our production capacity in Jincheon. In this way, we intend to secure and continue expanding our position as a leading silicone manufacturer in the region and profit from Asia’s strong growth.”

Expansions at the existing site are not possible

Wacker operations in Jincheon began in 2010 with the production of silicone sealants for construction applications and a variety of specialty silicone products for the electronics industry. Due to space constraints, however, capacity expansions at the existing site are not possible. For this reason, Wacker will dismantle the production facilities there late next year and transfer them to the new site in Jincheon. "Our objectives in building the new site are twofold: first, the site will create additional production capacity, which we will utilize for expanding our regional silicone sealant business”, Willems emphasized. "At the same time, we also intend to continue growing our business regarding specialty silicones.”

Stronghold South Korea

For several years now, Wacker has been developing specialty silicone gels, encapsulants and thermally conductive silicone adhesives for the electronics and lighting industries. During this time, South Korea has emerged as a stronghold for automotive and consumer electronics. That makes Jincheon the perfect location for these kinds of specialty silicones, Willems added.

Production in physically separate areas

Silicone sealants and specialty silicones will be produced in physically separate areas on the site, which has a size of 2.5 acres. This will allow the company to optimize its production processes and maximize its flexibility for future expansion projects. The building will also include its own cleanroom area for producing and packaging silicone gels, encapsulants and silicone elastomer products under suitable conditions – an increasingly frequent demand, especially for optical applications.

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