The Germany-based chemicals company is one of the largest producers of pyrogenic silica, which is produced at the site and is marketed under the name HDK.
As well as being used as a flow aid in the cosmetics, pharmaceutical and food industries, it is used in inks, coatings and adhesives.
According to spokesperson for the company, Christof Bachmair, the Kempten plant is closing as demand for the ingredient was dropped significantly.
Demand below pre-crisis levels
“As an effect of the global economic crisis, customer demand and consequently plan utilisation for pyrogenic silica are well below pre-crisis levels,” he told CosmeticsDesign-Europe.com.
Kempten’s plant will be closed during 2011 and the company plans to move production to its Burghausen and Neunchritz sites.
Currently Wacker has about 50 employees at the Kempten site and the personnel director Dr Wilhelm Sittenthaler said the hope was to close the site without layoffs.
Severance packages, phased early retirement deals and natural staff fluctuation will cover a number of cases, according to the company, as well as the option to work in other pyrogenic silica producing sites.
“We’ll need additional people there [Burghausen and Neunchritz] in January coming years, especially due to the expansion of our polysilicon business. And we will, of course, primarily consider our existing staff for these jobs,” Sittenthaler said.