Wacker Takes Majority Stake in China Silane Firm
German chemical company Wacker has acquired a 60% stake in Chinese specialty silane producer SICO Performance Material for an undisclosed sum. The transaction is expected to close in the first half of 2022 once the necessary regulatory and antitrust approvals have been received.
SICO Performance Material produces a range of organo-functional silanes at the Jining New Material Industrial Park in Shandong province. The silanes are used in the construction, automotive, semiconductor and electronics industries. Regarded as one of China’s leading silane suppliers, the company generated sales of €54 million in 2020.
"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," said Wacker’s president and CEO Christian Hartel. "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."
Prior to buying the stake in SICO, Wacker has manufactured organofunctional silanes exclusively in Germany. The Munich-based multinational group added that it will finance the investment from its free cashflow.
Author: Elaine Burridge, Freelance Journalist
