Wacker expands capacity for speciality silicones in Japan/South Korea

German chemicals firm Wacker Chemie has started up two new production facilities for speciality silicones in Japan and South Korea. The expansion strengthens the company’s activities in the Asian growth market. The new plants, located in Tsukuba, Japan and in Jincheon, South Korea, will serve the growing demand from the automotive and construction industries for these products.

Wacker adds it has invested an amount in the double digit million Euro range in the expansions, though it did not provide the capacity that has been upped.

Asia is already one of Wacker’s most important sales regions, with the company generating more than 40% of its sales in Asia.

The capacity expansion at Wacker’s production site in Tsukuba is targeting customers from the automotive industry, especially in the field of electromobility. The newly built plant hosts a production line for manufacturing silicone-based thermal interface materials (TIM). These materials are basically silicone elastomers that have been modified with various additives and fillers during compounding to render them thermally conductive.

Aside from the automotive industry, silicone-based TIM also serve as so called gap fillers in the electronics industry, where they provide effective thermal management of electrical components. The batteries in electric cars, for example, are embedded in silicone encapsulants. This ensures controlled dissipation of the heat generated during operation and protects the traction battery from overheating.

As part of the global trend towards electromobility, demand for such specialty silicones is also expected to increase in Asia. Japanese automotive suppliers are currently investing heavily in this sector.

“The industry is looking for opportunities to improve the design and performance of battery powered vehicles. Silicones are materials that enable new and innovative solutions, ranging from hybrid cable systems and efficient thermal management to effective potting of power electronics and enhanced battery safety. Our production line in Japan will enable us to better support growing demand for these high-end silicones in the region,” says Wacker Executive Board member Christian Kirsten.

It produces silicone specialties in Tsukuba as part of the Wacker Asahikasei Silicone (AWS) joint venture founded in 1999. It also operates technical and training centres for silicone applications.

At its South Korean site in Jincheon, the company has been producing silicone sealants for the construction industry since 2010 and specialty silicones, liquid silicone rubbers and silicone elastomers for the automotive and electrical industries since 2012. The products are shipped to customers throughout Asia.

The silicone sealants production had already been expanded as part of the site’s relocation in 2018. However, increasing demand for sealants put the plant to its limits.

The new production line will increase production capacity in Jincheon significantly.

“This investment will play a key role in ensuring that we can meet the growing demand in Asia in the long term,” furthered Kirsten. “With this step, we are further expanding our position as a market leader for high-quality silicone sealants in Asia. Jincheon now operates one of the largest, most modern and most efficient silicone sealant production sites in Asia.”