Turquoise Ammonia, Work Force Reductions at Wacker, and Recycling Polyurethanes

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Pivots

Wacker Chemie AG announced it was progressing with its planned 1200 workforce reduction primarily in administration according to their “Shape the Future” initiative announced last November. Wacker primarily deals in silica based products such as silica particles and silicone polymers and components for solar cells. Wacker also has some biological focused markets, which feels a bit confusing based on the company’s history, but may be a company saving division if competition in the silica and silicones market increases. Momentive, one of the largest silicone makers, went private in 2018 after emerging from a controversial bankruptcy. With Wacker’s cost savings it will be interesting to see how they deploy the saved capital, towards additional investment in biotech or giving the money back to shareholders? With interest rates at an all time low I would hope they have a plan to grow the business as opposed to just returning short term gains to shareholders. The silica/silicones business globally is expected to be impacted significantly by Covid-19.

What is Silica and How is it Different from Silicone?

Silica refers to silicon dioxide, which is essentially very clean sand and it is used…