WACKER Chemie AG, the Munich-based chemical group’s polysilicon division which manufactures components for the solar modules, reported sales of €1.53 billion (~$1.71 million), a two-fold increase from the previous year’s (€792 million (~$885.3 million)).
The polysilicon division witnessed strong demand in the semi and high-end solar markets, with reduced costs, higher prices of solar grades, and increased Si-metal and energy prices in the quarter.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) in the polysilicon division was €655 million (~$732 million) in 2021, compared to €5 million (~$5.6 million) in 2020. The EBITDA margin in 2021 was 42.8% compared to 0.6% in 2020.
In 2021, WACKER Polysilicon benefited from volume growth and the significantly higher prices for solar-grade polysilicon. The focus on high-quality polysilicon for semiconductor applications and improvements in production costs also had a positive effect on the operating result.
Image Credit: WACKER
Other business divisions
The company posted total sales of €6.20 billion (~$6.93 billion) in 2021, a 32% increase than €4.69 billion (~$5.24 billion) reported in 2020. The substantial rise in sales was attributed to volume growth and higher selling prices across every business division.
The company reported a net income of €780 million (~$872.04 million) in 2021, increasing by 286% compared to €202 million (~$225.84 million) in 2020.
As per the preliminary figures, WACKER’s capital expenditure reached €340 million (~$380.19 million) in 2021, increasing 52% compared to €224 million (~$250.43 million) in 2020.
According to the financial statement released by the company, the group’s EBITDA stood at €1.50 billion (~$1.68 billion) in 2021, an increase of 125.2% compared to €666 million (~$744.59 million) in 2020. The EBITDA for the Polysilicon division was at €255 million (~284.82 million).
Speaking on the strong performance, CEO Christian Hartel said, “All our business divisions contributed to last year’s strong sales growth. Demand remained robust throughout the year in most of our customer sectors. We also achieved substantially higher prices for our products than in 2020, helping us compensate for the strong increase in some raw-material prices. Demand remains high as we enter 2022, underscoring the excellent growth prospects of our business portfolio.”
In 2021, all of WACKER’s business divisions reported good gains due to volume growth and better prices. As per the financial statement, WACKER Silicones reported annual sales of €2.60 billion (~$2.91 billion), increasing by 16% compared to €2.24 billion (~$2.51 billion) in 2020. WACKER Polymers reported sales of €1.67 billion (~$1.87 billion) in 2021, rising by 28% compared to €1.30 billion (~$1.45 billion) in 2020. WACKER Biosolutions reported sales of €295 million (~$329.81 million), increasing by 20% compared to €246 million (~$275.03 million) in 2020.
Image Credit: WACKER
The company aims to cut greenhouse gas emissions by 50% relative to 2020. The company has a clear pathway to net-zero targets while capitalizing on growth opportunities.
Wacker Chemie has signed a strategic five-year polysilicon supply agreement with JinkoSolar. Wacker will supply polysilicon to JinkoSolar from its production sites in Germany and the United States.
Rakesh Ranjan is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More articles from Rakesh Ranjan.