Wacker Chemie disappointed by US polysilicon policy, sets new goals

Sept 17 (Reuters) - German chemicals group Wacker Chemie said on Thursday the US framework to support domestic polysilicon production was failing to achieve its intended goal, adding that it remains engaged in discussions with Washington on potential changes.  

• Wacker CEO Christian Hartel told a capital markets day in London that the minimum prices and import tariffs on raw materials for chips and solar modules announced by the US government in August were "disappointing".

• Hartel said that in its current form the framework does not encourage the use of US-made polysilicon.

• Wacker said it could continue operating all three of its polysilicon sites serving semiconductor and solar markets in a scenario where US measures support domestic demand. If not, Wacker said it could optimise its manufacturing footprint and focus on semiconductor-grade polysilicon.

• Hartel said Wacker would not rush a decision on shutting its Charleston, Tennessee plant.

• Wacker said third-quarter group EBITDA was expected at roughly the same level as the second quarter, with chemicals stable to slightly better.

• Its PACE cost-savings program is on track to deliver more than €300 million ($344 million) of annual gross savings by 2028, with more than 50% expected to be retained in EBITDA.

• Wacker said it would invest more selectively in coming years, focusing resources on higher-growth markets such as electronics, healthcare and mobility, while targeting growth above global GDP, an EBITDA margin of 15% plus or minus 2 percentage points and return on capital employed above 10%.

($1 = 0.8714 euros)

(Reporting by Antonis Pothitos; Editing by Alexander Smith)