TAGS: Sealants
WACKER acquires a 60 percent stake in specialty silane manufacturer SICO Performance Material, Jining (China). WACKER and SICO signed a corresponding agreement. The transaction is expected to close in the first half of 2022 after the necessary regulatory and antitrust approvals have been granted.
"Our new partnership with SICO is a consistent step in our strategy to further expand the share of high-margin specialties in our silicone business worldwide," explains Christian Hartel, WACKER's president & CEO.
Organofunctional Silanes Important for High-performance Adhesives
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SICO is one of the leading manufacturers of organofunctional silanes in China, which are a key component in high-performance adhesives, sealants, coatings, and composites. WACKER, in turn, also has decades of experience in this field. Up to now, however, we have manufactured organofunctional silanes exclusively in Germany. By acquiring a stake in SICO, we are now further expanding our range of high-performance specialty products in Asia and moving closer to our customers in these fast-growing consumer markets," added Hartel.
Founded in 2013, SICO Performance Material produces a range of organo-functional
silanes at the Jining New Material Industrial Park in the Chinese province of Shandong, which are used, for example, in the construction, automotive, semiconductor, and electronics industries. The company, which is one of the leading suppliers in this field in China, has grown strongly in recent years, operates very profitably and generates a positive cash flow. In 2020, SICO posted annual sales of €54 million.
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We are very pleased to join forces with WACKER," said Qu Yuan, chairman of SICO Performance Material. "
WACKER is one of the global market and technology leaders in silicones. Together, we will further expand our specialty silane portfolio."
WACKER will finance the investment from its free cashflow. As the joint venture is a majority-owned company, WACKER will fully consolidate it in its consolidated financial statements after the transaction is completed.
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Organofunctional Silanes from WACKER
Source: WACKER