EANS-News: WACKER Builds New Dispersions Plant in South Korea

Munich / Seoul (euro adhoc) -

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September 24, 2012 - Wacker Chemie AG is expanding
its production capacity in South Korea for vinyl acetate-ethylene copolymer (VAE) dispersions. The Munich-based chemical group is constructing a new plant with an annual capacity of 40,000 metric tons at its site in Ulsan. This measure will almost double Ulsan's VAE dispersion capacity, making the enlarged production complex one of the biggest of its kind in South Korea. Expected to start up in January 2013, the new plant will enable WACKER to meet accelerating demand for high-quality VAE dispersions, especially in South East Asia's developing countries. Having budgeted around EUR10 million for the expansion project, WACKER is strengthening its position as one of the world's major suppliers of VAE dispersions.

WACKER already produces vinyl acetate-ethylene copolymer dispersions marketed under its VINNAPAS® brand at Ulsan for use as binders in the adhesives industry. Now, the group is constructing a second reactor line with an additional 40,000 metric tons of annual capacity for applications in the paints and coatings, construction, nonwoven, paper and carpet industries. WACKER considers the expansion to be essential for reliably and enduringly meeting the market growth that industry experts anticipate in the region.

"Our new production facility for VAE dispersions at Ulsan represents a key step in our global growth strategy," explained Auguste Willems, Executive Board member of Wacker Chemie AG. In the coming years, he stressed, demand would continue growing for top-quality VAE dispersions, especially for those used in formulating more environmentally-friendly products featuring low emissions. "That was why we also began this spring expanding annual VAE capacity at our Chinese site in Nanjing, where we are adding 60,000 metric tons. Nanjing's new capacity is expected to come on stream by mid-2013. Our expansion projects in South Korea and China will double our VAE capacity in the region, and thus help us consolidate our already strong position as a globally leading producer of VAE dispersions."

Han-Hyung Cho, head of Wacker Chemicals Korea, stressed the importance of the new plant for Asian markets: "The additional capacity will enable us to continue supplying high-quality, locally manufactured products and solutions to our customers in the region. It will also mean we can meet their special requirements in a targeted manner." Using the Ulsan site's existing infrastructure, he added, would enable favorable manufacturing costs and lead to synergy effects in the areas of transportation and logistics. The expanded site in Ulsan will be one of the biggest of its kind in South Korea.

With over 50 years' experience in the development and production of vinyl acetate-ethylene copolymer dispersions, WACKER is a global technology and market leader in this field. VINNAPAS® dispersions are popular binders in the construction, paints, coatings and adhesives industries. The dispersions find application, for instance, in the formulation of low-odor and low-emission indoor paints, but also in plasters, technical textiles and nonwovens, carpet adhesives and as binders in polymer materials based on renewable resources.

WACKER in South Korea
WACKER has been supplying chemicals to South Korea since the mid-1980s. In 1996, it set up Wacker Chemicals Korea as its subsidiary there. Since early 2008, WACKER's site in Ulsan (southeastern Korea) has been producing VAE dispersions and providing local support to customers and partners through its technical center for research and applications engineering. In 2010, WACKER acquired the South Korean Lucky-Silicone brand - used mainly for producing and marketing silicone sealants for the construction sector. In early 2012, WACKER completed the expansion and relocation of its technical labs and offices to a new regional competence center near South Korea's capital, Seoul. The competence center brings together R&D activities, applications technology and the WACKER ACADEMY, a training facility that focuses on silicone and polymer applications.

end of announcement euro adhoc

company: Wacker Chemie AG Hanns-Seidel-Platz 4 D-81737 München phone: +49 (0) 89 6279 01 FAX: +49 (0) 89 6279 1770 mail: info@wacker.com WWW: http://www.wacker.com sector: Chemicals ISIN: DE000WCH8881 indexes: MDAX, CDAX, Prime All Share stockmarkets: free trade: Hannover, München, Hamburg, Düsseldorf, Stuttgart, regulated dealing: Berlin, regulated dealing/prime standard: Frankfurt language: English

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Rückfragen & Kontakt:

Nadine Baumgartl
Media Relations & Information
Tel.: +49 (0)89 6279 1604
E-Mail: nadine.baumgartl@wacker.com