Wacker Chemie’s 2024 group sales slumped by 11% YoY at €5.72 billion
The polysilicon business division was responsible for €950 million, a 41% YoY drop
Semiconductor polysilicon had better prospects than solar-grade polysilicon
German chemicals producer Wacker Chemie AG has reported a 41% year-on-year (YoY) decrease in sales for its polysilicon business division in 2024 citing lower prices and volumes for solar-grade polysilicon. This impacted its overall business as the company’s preliminary figures peg total group sales for last year at 11% less YoY at €5.72 billion.
Wacker’s polysilicon business sales of €950 million in 2024 were accompanied by €195 million in EBITDA which contracted by 39% YoY. It cites a drop in demand and lower prices along with high energy prices in Germany as the major reasons for this drop in its unaudited financial results for last year.
Lower prices for solar PV components, including polysilicon more or less defined the industry’s landscape last year. Leading Chinese polysilicon producer Daqo recently forecasted up to RMB 3.1 billion loss for 2024 (see Daqo New Energy Unit Issues Net Loss Guidance For 2024 Financials).
According to TaiyangNews PV Price Index for Calendar Week 52 in 2024, polysilicon prices were flat week-on-week (WoW), ending CY2024 with around 40% decline for all polysilicon products (see TaiyangNews PV Price Index – 2024 - CW52).
Wacker CEO Christian Hartel pointed to the challenging economic environment in 2024 for its business going down with weak demand in several of its customer sectors. Many of the group’s customers, mainly in the construction and automotive industries, curbed production.
It was even more pronounced in the polysilicon business division. Hartel stated, “In POLYSILICON, on the other hand, our business was hit by the slump in demand for solar-grade polysilicon and by the sustained excess capacity in China.”
Additionally, Hartel said the US anti-dumping tariffs on solar imports from Southeast Asian nations also ‘unsettled’ the markets (see US Issues Solar Import Tariff Round 2 For Southeast Asian Nations).
Nevertheless, going by the growing demand for semiconductor-grade polysilicon, Wacker plans to increase the share of hyperpure polysilicon for the semiconductor industry going forward.
Wacker will publish its 2024 Annual Report and outlook for 2025 on March 12, 2025.