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WACKER acquires major stake in Chinese specialty silane manufacturer
Source:Adsale Plastics Network    Editor:JK    Date:08.Nov.2021

WACKER acquires a 60% stake in specialty silane manufacturer SICO Performance Material Co., Ltd, Jining (China). WACKER and SICO signed a corresponding agreement in October and the transaction is expected to close in the first half of 2022 after the necessary regulatory and antitrust approvals have been granted.

 

"SICO is a leading manufacturer 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," commented Christian Hartel, WACKER's President & CEO. "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."


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Organofunctional silanes are used, for example, in the formulation of highly elastic specialty adhesives for construction applications. 


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 profitably and generates a positive cash flow. In 2020, SICO posted annual sales of €54 million.

 

"We are very pleased to join forces with WACKER," added 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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