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Wacker to cut 1,000 jobs by 2022

February 21/2020

MOSCOW (MRC) -- Wacker Chemie will cut 1,000 jobs by the end of 2022 to save costs and prepare for a “harsher competitive environment”, said the company. 

Munich-based chemical group Wacker Chemie AG has begun its “Shaping the Future” restructuring plan by announcing 1,000 jobs will be lost by the end of 2022 as it aims to save EUR250 million per year.

The company announced around 800 posts will be culled at German sites with administrative staff and people working in indirect and non-operational roles those at risk.

As far as possible, the job cuts will be realized through retirement, partial retirement schemes or termination agreements, Wacker said, emphasizing it wants to avoid redundancies among its manufacturing staff.

Chief human resources officer Christian Hartel said he was confident “good and fair solutions” could be negotiated with employee representatives. Wacker employs around 14,500 people worldwide, 10,000 of whom are based in Germany.

Wacker boss Rudolf Staudigl said the company “is preparing itself to take a tougher pace in the competition both in the polysilicon business and in our chemical divisions”.

Annual figures for 2019 published by Wacker last month indicated heavy losses after write-downs related to the company’s polysilicon division.

According to preliminary figures, published earlier, Wacker posted a net loss and negative earnings before interest and taxes (EBIT) in 2019.  Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell sharply and sales fell 1%.

As MRC informed earlier, in September 2019, following a construction phase lasting 20 months, Wacker Chemie AG brought a new spray dryer for the production of dispersible polymer powders on stream in Ulsan, South Korea. The plant is part of an ongoing site expansion aimed at boosting the company’s production capacity for dispersions and dispersible polymer powders in Asia.

We also remind that in 2013, Wacker launched a new EVA production plant - with an additional 40,000 tonnes annually - at its Ulsan site in South Korea back in February. The production capacity of the site has, thus, almost doubled then, making the plant complex one of the biggest of its kind in South Korea - thereby solidifying the company's global leading position in this segment.

According to MRC's DataScope report, in December last year, EVA imports to Russia decreased by 4.1% to 3.6 thousand tonnes from 3.76 thousand tonnes in December of the previous year, and by the end of 2019, imports of this type of ethylene copolymer in the Russian Federation decreased by 17.8% - to 39.55 thousand tonnes (48.09 thousand tonnes in January-December 2018).

Wacker Chemie AG is a worldwide operating company in the chemical business, founded 1914. The company is controlled by the Wacker-family holding more than 50 percent of the shares. The corporation is operating more than 25 production sites in Europe, Asia, and the Americas. The product range includes silicone rubbers, polymer products like ethylene vinyl acetate redispersible polymer powder, chemical materials, polysilicon and wafers for semiconductor industry.
Author:Anna Larionova
Tags:EVA, Wacker, Wacker Chemie.
Category:General News
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