Solar Photovoltaic Industry Drives Wacker’s Polysilicon Expansion Plans

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Researched by Industrial Info Resources (Sugar Land, Texas). Wacker Chemie AG (XETRA:WCH.DE) (Munich, Germany) expects solar-section polysilicon demand to grow at annual double-digit rates over the next four years. The main driver behind this growth in the hyperpure polycrystalline silicon sector is the solar power industry demand for the material for the manufacturing of solar cells. Wacker is also expecting high single-digit polysilicon growth in the electronics sector through 2010.

The company is planning to invest $382 million in a project to expand polysilicon production capacity at its Burghausen plant by an additional 4,500 tons per annum (tpa) to reach a total output of 14,500 tons by the end of 2009. The company has already initiated expansion pans to increase nominal production capacity from the current 5,500 tpa to 10,000 tpa by the fourth quarter of 2008. Material from the new ‘capacity expansion stage 7’ is expected to be available in the same quarter of 2008. The latest expansion is expected create 270 jobs.

Wacker has been producing hyperpure polycrystalline silicon for the semiconductor industry at Burghausen for over 50 years. Now, with solar silicon demand rising, the company has been increasing sales to the photovoltaics industry over the past six years and continues expanding production capacity step by step.

Group President and CEO Dr Peter-Alexander Wacker said, “Today’s expansion decision is another milestone to deliver the long-term strategy for profitable growth. We are already the world’s second-largest polysilicon producer and plan to become the market leader. We want to practically triple our polysilicon production capacity by the end of 2009. Also, we consider this project a major contribution to accelerate growth in the solar industry.”

In May, the company announced construction plans for a new plant to expand production of dispersible polymer powders by an additional 30,000 tpa. This plant is scheduled to start operations in 2007 and will help to meet increasing global demand for high quality polymeric binders for the construction industry.

In another move to meet demand in the dispersible polymers sector, Wacker commissioned a new powder spray dryer at its plant in Zhangjiagang in 2005. This plant is supplying the high demand from the company’s European customers.

The company has production plants in Europe, U.S.A. and Asia plus runs seven polymers technical centers in Germany, Russia, Brazil, U.S.A., China, Dubai and Australia. These centers provide engineering services and individual customer support.

In 2005, Wacker hit its highest earnings before interest and tax (EBIT) with $330 million, a rise of over 130% from 2004. Group consolidated sales rose 10% to $3.52 billion for 2005.

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