Sector News

Wacker Chemie evaluating an IPO or sale of Siltronic silicon wafers business

March 10, 2015
Chemical Value Chain
Wacker Chemie today confirmed reports that it is examining options relating to the ownership structure of Siltronic, its silicon wafers unit that supplies the global microchip industry. The company says it is looking at a number of strategic options. The executive board presented plans to the supervisory board today, which could involve an initial public offering of shares in Siltronic, which is currently a 100% subsidiary of Wacker, or an outright divestment to a strategic investor.  
 
“Reshaping Siltronic’s ownership structure could be beneficial for both Wacker and Siltronic,” says Rudolf Staudigl, CEO of Wacker. The proceeds could be used to reinforce Wacker’s chemical and polysilicon businesses. In addition, the capital intensity of the group would decrease. At the same time, Siltronic could harness additional growth opportunities in the event of an IPO by accessing the capital markets itself.
 
“A detailed analysis of all the possible courses of action is necessary first to see how far these goals are achievable and which path would then be appropriate,” Staudigl says. A decision will be made after a full, in-depth analysis, Wacker says.
 
Siltronic, with a 14% share of the global market in 2013, is the third-largest supplier of semiconductor silicon wafers, after Sumco and Sin-Etsu. The company makes 300-millimeter (mm) wafers at Burghausen and Freiberg, Germany; and in Singapore. It has been consolidating smaller-diameter wafers production and now makes 200-mm wafers at Portland, OR; and Singapore. Siltronic, in the fourth quarter of 2014, reported sales of €223 million ($239.7 million), accounting for about 19% of Wacker’s total. The business more than tripled its Ebitda in the quarter, to €38 million. Siltronic’s full-year 2014 sales were €853 million with Ebitda of some €114 million, according to preliminary figures. The business contributed 18% to Wacker’s total sales and 11% to Ebitda.
 
By Natasha Alperowicz
 

comments closed

Related News

June 24, 2022

BASF to build commercial scale battery recycling black mass plant in Schwarzheide, Germany

Chemical Value Chain

BASF will build a commercial scale battery recycling black mass plant in Schwarzheide, Germany. This investment strengthens BASF’s cathode active materials (CAM) production and recycling hub in Schwarzheide. The site is an ideal location for the build-up of battery recycling activities given the presence of many EV car manufacturers and cell producers in Central Europe.

June 24, 2022

Clariant restructures business units, reorganizes leadership

Chemical Value Chain

Clariant says it is reducing its number of businesses from five to three, by merging units, under a reorganization that is in line with the company’s purpose-led strategy and cultural transformation. The moves will position Clariant for long-term sustainable growth, the company says.

June 24, 2022

Chemicals & Plastics Procurement: what to expect in the second half of 2022

Chemical Value Chain

Chemicals & plastics industry has the most diversified end-use market across all manufacturing industries. The industry returned to growth in 2021 but a supply chain crunch prevented it from becoming stronger. The market is likely to stabilize in the second half of 2022 with a supply-demand balance.