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

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Company Information

Munich / Seoul (euro adhoc) - 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.

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

end of announcement euro adhoc
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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