WACKER Embraces Digitalization, R&D, and Sustainability to Develop Sealants for the Future

WACKER SILICONES is advancing its sealants business through sustainable innovation and customer-focused solutions to meet shifting global market demands.

By Karen Parker, Editor-in-Chief, ASI

As industries around the world face growing demands for sustainability, efficiency, and innovation, WACKER SILICONES is strategically positioning its sealants business to meet these evolving needs. In this interview with ASI, Dr. Thomas Koini, president of WACKER's silicones division, outlines how the company is driving growth through a balanced product portfolio, customer-centric innovation, and a steadfast commitment to sustainable development. Learn how WACKER is leveraging its integrated production capabilities and R&D strength to navigate global challenges while staying ahead of the curve and leading the way.

ASI: How is Wacker Silicones positioning its sealants business to address the changing demands of the industries you serve?

Dr. Thomas Koini: WACKER SILICONES is positioning its sealants business for growth by offering our customers a strong product mix and broad portfolio of options. Our improved product mix is a primary driver. Our growth in the health sector was particularly noteworthy, especially in products such as silicone adhesives for wound care. Although the weak construction sector impacted business, we will continue to invest in developing our products to serve customers in this sector. Another positive factor was the high-capacity utilization of our plants. We grew in adhesives for sustainable paper packaging. Volumes also developed well for tile-adhesive binders. Rotors used in offshore turbines can be well over 100 meters long and weigh 50 to 60 metric tons, which means that manufacturing rotors requires powerful adhesives, and that's why the adhesives are modified with pyrogenic silica. Adhesives modified with our binders need as much as 90 percent less sand and cement, which helps considerably reduce resource consumption in the building sector. Two-thirds of WACKER's product portfolio is already dedicated to sustainable solutions, and we are continuously increasing this proportion. This commitment to sustainability is a source of pride for us and our stakeholders. When I say sustainable solutions, I mean products that not only reduce CO₂ emissions or improve resource efficiency but also meet the specific needs of our customers. This customer-centric approach is at the heart of our business strategy.

ASI: What recent R&D efforts in silicone sealants are you most excited about? How do they align with sustainability goals?

Koini: We are excited to unveil our groundbreaking product innovations from the European Coating Show, featuring alpha-silane-cross-linking binders for high-quality adhesives and sealants that prioritize sustainability. At WACKER, our motto, "Here for you," reflects our commitment to customer collaboration. We encourage discussions about our advanced hybrid polymers using alpha3 technology, which enhances performance and enables tin-free formulations. Our new SILRES^® HP 2000 LV hardener system for epoxy-polysiloxane topcoats reduces volatile compounds, supporting safer, more sustainable applications. We've also introduced VINNOL^® H 15/45 M Renewable Energy, a solution made from renewable sources, significantly lowering its carbon footprint while delivering excellent processing properties. In adhesives, our GENIOSIL^® STP-E 140 and STP-E 340 silane-terminated polyethers eliminate the need for tin catalysts, allowing for high-elasticity, low-modulus formulations without compromising processing methods. Together, these innovations represent a new benchmark for sustainability and performance in the coatings and adhesives industries.

ASI: How is Wacker managing raw material sourcing and supply chain challenges given current geopolitical and economic uncertainties?

Koini: The 2025 market environment presents challenges but also valuable growth opportunities. We are focused on pursuing new business and optimizing capacity by systematically completing customer projects. The "Opportunity and Pipeline Management" project will help us identify prospects with potential and existing clients, leveraging Salesforce to improve effectiveness. To tackle inflation and rising expenses, we will manage costs thoughtfully through targeted efficiency measures, essential process improvements, and a strong emphasis on digitalization. Furthermore, we are committed to harnessing the transformative capabilities of artificial intelligence. Our recent cost-cutting initiatives positively impacted our earnings in 2024, and we are excited to build on this momentum as we embrace the opportunities ahead.

ASI: How is Wacker responding to regulatory pressures within the EU and the rest of the world?

Koini: As a leading chemical company operating in an energy-intensive industry, we understand that raw material and energy costs are critical to our success. Although prices declined in 2024 due to an economic slowdown, they remain higher than in 2018 and 2019. We are dedicated to maintaining our competitive edge at WACKER. We source from multiple suppliers, structure flexible contracts, and apply effective pricing strategies. However, European energy prices remain disproportionately high, driven by strict regulations, including the CO₂ emissions trading system and energy taxes. Despite a decrease in electricity and natural gas prices since Russia's aggression against Ukraine, they remain elevated compared to other regions. In 2024, WACKER will strongly advocate for a competitive industrial electricity price in Europe.

ASI: What differentiates Wacker's sealant products from other major players?

Koini: Wacker Chemie's competitive advantage in the sealant market stems primarily from its integrated production system, which allows for efficient resource utilization and supports environmental protection. This, combined with a focus on sustainability and developing innovative products like AL-Polymers, further strengthens our market position.