Wacker is continuing to expand its silicone production capacity in India. A new production complex dedicated to silicone emulsion manufacturing has been commissioned at the Panagarh site. The facility produces silicones certified in accordance with the good manufacturing practice (GMP) guidelines of the European Federation for Cosmetic Ingredients EFfCI, intended for the cosmetics and personal care industries. The new plant significantly increases the group's silicone emulsion production capacity in India and is associated with the creation of 60 new jobs in Panagarh.
The 15,000 m2 complex has been designed to meet quality and regulatory requirements for the manufacture of cosmetic ingredients. Products made in Panagarh fully comply with the EFfCI GMP guidelines for cosmetic ingredients, which is crucial for customers in the cosmetics and personal care segments. During the commissioning ceremony, Wacker executive board member Christian Kirsten emphasized the importance of the investment for the company's global silicone supply chain, stating that "our facilities in Panagarh are truly world class and will produce top quality, high purity products which are in great demand, in particular in the cosmetics and personal care industries".
For Wacker, the personal care industry is one of the main pillars of its silicone business in India. The fully consolidated joint venture Wacker Metroark Chemicals (WMC) is one of the leading suppliers of silicone raw materials for cosmetic products, shampoos and other personal care applications on the Indian market. Its customers include both local manufacturers and international consumer goods groups that use silicones in their product formulations. As pointed out by Tom Koini, head of Wacker's Silicones division, "the demand for our silicone products remains unabated, and we expect to see further significant growth in India. By expanding our production in Panagarh, we are ideally positioned to meet this rising demand and to support the growth of our customers".
Development of silicone production in India
Wacker started silicone production in India in 1999. At the Amtala site near Kolkata, the company has for many years manufactured, among other products, silicone fluids, emulsions and silicone rubber compounds, as well as other silicone materials. Based on this production platform, the company has built its position on the Indian market, gradually expanding its portfolio and increasing delivery volumes.
The next stage of development was the start-up in 2022 of the new plant in Panagarh, occupying an area of 165,000 m2. Initially, production at this location focused on silicone rubber and ready-to-use silicone compounds for the electromobility, medical technology and electrical power supply sectors. These applications include sealing and insulation components and specialty products with enhanced thermal and electrical resistance.
With the completion of the second expansion phase in Panagarh, this plant has become, alongside Amtala, the second main pillar of Wacker's silicone emulsion production in India. The company indicates that, thanks to further investments, Panagarh is to assume a leading role in the regional silicone supply chain in the future, in particular in the field of products for the cosmetics and personal care industries.
New role of Panagarh and Amtala
Until now, Amtala has served as the main hub for the production of silicone fluids and emulsions in India. As demand has grown, however, this plant has increasingly approached the limits of its technical and logistics capabilities. Wacker plans a gradual redefinition of the roles of the two production locations. Panagarh, thanks to the available space and infrastructure, is to become the key silicone production hub in the region. Amtala, in turn, is to focus increasingly on product and process development, acting as a competence center for product innovation and manufacturing technology optimization.
The importance of the Panagarh expansion for Wacker's strategy on the Indian market was underlined during the opening ceremony by Sascha Büchel, managing director of Wacker Metroark. "The successful completion of the expansion work in Panagarh is key to our future success in India. Our main site in Amtala has played an outstanding role, but Amtala is increasingly being stretched to its limits. Panagarh provides us the space, infrastructure and flexibility we need to continue our success story in India".
The expansion of silicone emulsion production in Panagarh strengthens Wacker's position in one of the fastest growing cosmetics markets in the world. At the same time, the increased manufacturing capacity and compliance with EFfCI GMP guidelines enable the company to better tailor its offering to the requirements of global customers, both in terms of product quality and safety. The investment fits into Wacker's long term strategy for the development of its silicone business in Asia and the reinforcement of regional supply chains.
Wacker's Panagarh plant after completion of the second expansion phase including the commissioning of the silicone emulsion complex
