Zhangjiagang - Wacker Chemie AG

CREATING TOMORROW´S SOLUTIONS

Zhangjiagang

Silicones Reach New Distant Shores

One of the world’s most up-to-date silicone production centers is emerging 170 kilometers outside of Shanghai. With the Zhangjiagang Yangtze River International Chemical Industry Park, WACKER is setting new technological standards.

The HDK® pyrogenic silica plant started production in 2008.

WACKER’s newest plant is located in the east of China on the outskirts of Zhangjiagang, an up-and-coming city with more than a million residents. The entire integrated production system covers an area of 1 km².

It is China’s largest silicone production facility and the upstream section is a joint venture between WACKER and Dow Corning Corporation (USA).

The packaging line in the pyrogenic silica production plant.

The reason for this high-end production facility being located in China is the country’s breathtaking pace of development. Nowhere else in the world is there as much construction activity going on as here.

China now has the second greatest demand for silicones in all of Asia and most of it is being satisfied by Zhangjiagang. The joint projects have been operational since 2008:
Phase one of the siloxane plant, and a plant for HDK® pyrogenic silica.

An employee during a break.

Integrated Production

Integrated processes that generate virtually no waste are a notable feature of the park. The park’s resident companies are part of a sophisticated production chain.
Based on this principle, over 3,000 silicone products and pyrogenic silicas are made from the two main raw materials – silicon and methanol.

Siloxane and pyrogenic silica are made in the joint venture’s upstream section. WACKER and Dow Corning run separate operations in the “downstream” part, where the siloxane is transformed into various silicone products. The pyrogenic silicas are marketed directly.

Although over a million people live in Zhangjiagang, it’s still a relatively small city by Chinese standards.

WACKER is to invest some $350 million in the facilities. In late 2010, about 200,000 metric tons of siloxane and pyrogenic silicas (HDK®) are to be produced there yearly. The jointly operated HDK® factory is the largest of its kind in China.

HDK® is an active filler for silicone elastomers and a flow enhancer for the cosmetics, pharmaceutical and foodstuff industries.

The siloxane produced by the joint venture is a starting material for the production of silicones and is kept within the park. Production at the three plants operated solely by WACKER is based on siloxane:
They make silicone elastomers, silicone sealants and silicone emulsions.

China – The World’s Workbench

  • Population: 1.3 billion
  • Currency: renminbi (RMB) – except in Hong Kong and Macao
  • Employment sectors: agriculture 43%, services 32%, industry 25%

With a GDP of $6,991 billion, China has the world’s second largest economy (after the USA). Since 2007, it has been engaged in a neck-and-neck race with Germany for the title of world’s largest exporter. Foreign investment amounted to roughly $75 billion in 2007. At that time, the People’s Republic of China was the second most attractive destination for foreign direct investment after the USA.

Since economic liberalization first began in the late 1970s, China has – based on its low wages – earned a reputation as “the world’s workbench.” Starting in the mid-1990s, China has become the world’s largest manufacturer of steel, coal, cement, chemical fertilizers and televisions. The country also has the world’s largest textile industry.

The demand for basic plastics is correspondingly high, because the relevant customer sectors are still enjoying relatively resilient economic strength, despite the current world economic crisis.

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