Weak demand will have a significant impact on Wacker Chemie in 2023. Sales fell by 22 percent to 6.4 billion euros last year, as the MDax group announced on Monday based on preliminary figures.

Of these, 824 million euros remained as earnings before interest, taxes, depreciation and amortization (Ebitda), 60 percent less compared to the record value of 2022. In summary, Wacker is expected to make a profit of 330 million of euros (previous year 1.28 billion).

Wacker Chemie boss Christian Hartel lowered his expectations in the autumn and has since forecast sales of around 6.5 billion euros and an operating profit of between 800 and 900 million euros.

Weakened construction sector has major impact on Wacker

The chemical industry has long suffered from the weakness of the world economy. Europe is weakening and the particularly important market of China is suffering from a serious real estate crisis. The construction industry is an important customer for Wacker polymers. These are a wide variety of chemical compounds that are the basis of adhesives, but are also added to floor coverings, paints and concrete.

Wacker also felt price pressure in its silicone business. These plastics are used in the electronics industry, textile manufacturers, medical technology companies and the construction industry. And the polysilicon business for the solar industry also weakened due to competition from China.

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