CEO Podcast: Chris Kowitz, WACKER Chemical Corporation

Paul Krutko: Welcome to Ann Arbor SPARK’s CEO Podcast…Conversations on Economic Opportunity. My name is Paul Krutko, and I’m the President and CEO of Ann Arbor SPARK.

Today, we’re pleased to welcome Chris Kowitz, President and CEO of WACKER Chemical Corporation. Chris brings a wealth of experience in global chemical operations and strategic leadership to his role. With over two decades at WACKER, his career spans key positions in sales, marketing, and business development across Europe, Asia, and North America. Chris holds a degree in business administration and has been instrumental in driving growth and innovation for WACKER’s operations worldwide. In addition to his role at WACKER, Chris is an active member of Ann Arbor SPARK’s Board of Directors.

Chris, thanks for joining us.

Chris Kowitz: Thank you for having me here, Paul.

Paul: Great. Well, sometimes our audience isn’t familiar with the companies that we have in our area, so the way I want to start is WACKER itself has a rich history of innovation dating back to its founding in 1914 with contributions across a very wide range of industries. Can you share some of the examples of how WACKER’s advancements have shaped everyday life, everyday consumer products that we may all recognize and rely on?

Chris: Sure. Paul, let me start maybe with shortly introducing WACKER. We are roughly five and a half billion US dollar company and we have four major divisions and each of the divisions is usually not focused on consumers, but there is a bunch of products that you will be familiar with. Think about our BioSolutions division. That’s where we deliver CAVACURMIN. So if you like Curcumin, you’re going to be actually swallowing stuff that’s from us. 

When I think of our polymers division, that’s the number two, we are an important additive for thin that mortars. So when you think of your next tiling project and you use the large format tiles, you need the right mortar that gives flexibility. And these things in the last 10, 15 years really took off partially based on our additives. 2% in it from the WACKER product makes a great thin bed mortar.

Then the third division is our silicones division, and there you have about 3000 products and some of the products we use every day in the shower when you put on the shampoo, and especially not so much yourself and myself, but the longer the hair gets, the more nice is the 2% silicone additive that really gives you shiny hair and easy care properties. 

And last but not least, our fourth division is our polysilicon division. And those products you find actually in every second computer chip, and we make the purest material in the world and then our customers make wafers out of this pure silicon. And then the semiconductors follow. So actually we are in quite a bit of stuff that you deal with every day and out.

Paul: Yeah, that’s so interesting because a lot of times we don’t think about when we have our phone, what are all the elements that go into that and where, we all know about somebody making a chip, but what is the material and where does the material come from? So thanks for sharing that. 

So what I think the next thing I want to ask you about is obviously WACKER has made a tremendous investment here in the Ann Arbor region. And could you share what your team and you are working on at the North American headquarters here, an Innovation Center that’s located in Pittsfield Township?

Chris: Sure, Paul. We came here a couple of years ago and we have been in Michigan now 70 years overall. And Adrian is our big production plant for the silicone specialties. And here in Ann Arbor we have our innovation center with 140,000 square feet and about 300 people are employed here in Ann Arbor. And we serve basically our four divisions that WACKER is made up of. And the big focus is in our silicones field and obviously Michigan being the automotive center of the United States, we closely work with the automotive suppliers for the tier one suppliers and also with the automotive companies themselves. And they need specialty rubbers, silicone rubbers, and we have about 1500 products. And basically you really need specialty grades that are customized to specific applications. We have the right machinery to test the material here in our labs and in our pilot facilities together with our customers. And that’s really a big deal for us, what we’re doing.

Paul: So was the location being near the University of Michigan an important factor in making the location decision when the company was considering where to put this research facility?

Chris: I think so. I think that absolutely the University of Michigan is a brand institution for us. It’s an amazing place, has an enormous rating within the US and within the world. And for us it’s a fantastic resource and a fantastic institution. At the same time, there’s also other institutions here like Eastern Michigan, like Michigan State that we also look out for. And so it’s really the overall network of institutions that’s very helpful for us. And let me also dive back a little bit when we talk about the universities, when we talk about other products that we work on here that we are making developments for, it’s the medical field. We are making specialty silicones for medical applications for wound care and for wound dressings. They give you special adhesive properties — you can pull off the adhesive without any pain and also without any trauma to your skin and to the wound, and for these types of specialty products, we need the medical device companies that are also very strong here in the area. And that’s also where the academic institutions come into play and are very interesting as for us as partners.

Paul: Well, as someone, as I joke, has a lot of Michigan parts from replacements of various joints, I know about the adhesive products. So I appreciate the fact that you have made them easier to deal with as you’re recovering. So I really appreciate that. 

So you’ve worked all over the globe. I guess I want to take a step back and say, tell us about some of the key experiences you’ve had over your career that you bring to your role here.

Chris: I think it’s fair to say after three decades in the specialty chemicals field, I have a fair experience of how the specialty chemicals business model works. And that’s about product development, it’s about the manufacturing of those specialty chemicals. It’s a technical service to our accounts, to our customers and the joint work, and all these elements have to fall in place if you want to be successful in the market. And I think I have gotten a reasonably broad experience along these different functions and that’s helpful. Then when you come here to the US you can see what are our strengths here, where can we get better and how can we grow more and leverage more this wonderful market that’s present here.

Paul: Yeah, maybe take a moment. We talked about it in the introduction that you’ve worked all over the globe. What are some of the locations that you did work at over the years?

Chris: Well, first of all, I am a German national. I have worked in Germany and Europe and it’s a great place, obviously Europe. It’s fun. I’m happy to be coming from that area. At the same time, it’s always refreshing to come back here to the US just because there’s so much more dynamic developments going on versus Europe. And that is not only a short term thing, but it’s a medium term. When you look over the last two decades, Europe has stayed stable as far as the economies concerned and the global share went down overall and the US economy kept up, it kept its share, its global share plus the US has contributed very strongly in many different segments of the economy, I think more than Europe. So Europe is great, it’s very stable, but at the same time it’s a lot less dynamic than what’s going on here.

Let me fill in maybe another region. I’ve been working a lot in Asia for multiple years and that was very nice and interesting and exciting because when I started that 15, 20 years back, the markets took off at that time obviously, and it was very dynamic and western companies supported the local markets and the western companies, European based, US based, they built subsidiaries and built their business there then locally. And that’s fun. That’s a very rewarding task and I enjoyed it in a lot of that in China, but also in other geographies in Asia. And that has of course flattened a little bit, especially when you think of China. There’s definitely, we can see that nowadays the market has matured there quite a bit. I’m going to tell you now, I feel the US is the place to be at this moment of the current time.

Paul: Well, that’s good to hear. I first met you about seven months ago. You’ve been in this role about that long. I guess I want to ask you, you talked about what you’re doing at the facility. Do you have some key priorities that you’re focusing on over the next couple of years with your facility here?

Chris: I think yes. The overall approach of WACKER is always quite long-term oriented. It’s surprisingly long-term oriented. It’s always a little bit of a surprise for our staff here in the US how WACKER is thinking. We are family owned. Mr. Wacker still is the head of our supervisory board and he owns over 50% of the shares. And so we have a very strong setup here. I think in the U.S., all our four divisions are present in the United States and still we want to leverage more the fantastic background of the economic growth and the developments in the market. So what we always try to do well is pick the right markets, the right market segments, and then be really a relevant player there. And we have some of that and that’s a constant effort. And I think we will refocus a little bit on some of this stuff. And when I mentioned the medical field, that’s definitely a strong one where we continue to grow and carve out our piece of the whole segment. There’s no question about it. 

The other piece that’s really important is the supply chain for our customers. We are a US company here. We want to give the best service for our US clients and supply chain is based on primarily local production. And we’ve got to do more there and we will do more here for this segment. We need a stronger footprint that has to continue to develop. And of course, obviously we also want to leverage our global capabilities. WACKER is a global company and we also serve certain products from other locations from all throughout the world. And making a good setup there, having a strong setup is very important and I keep working on that.

Paul: Okay. So two questions kind of closing out, which is about you coming into the community. First, you are a new SPARK Board member. What are your impressions of SPARK and your fellow board members?

Chris: I’m highly impressed about SPARK. SPARK is really phenomenal. The team that I got to know and the breadth of activities that SPARK is engaging in made me a little flabbergasted of how this organization is really leading an impact here in the community, in the region, and also in the nation. And I sort of do compare that a little bit with what I’ve seen in other parts of the world. And I don’t have a strong US perspective there, but I have seen how we do things in Germany in the economic development scene. And that went all the way to Brussels to Europe. And that’s also capable people who want to do the best. But what SPARK is doing is a great cohesion and really a very strong focus always on getting things done besides without losing this vision of making this region stronger. 

And I will finalize this comment about the SPARK organization and the power that your team has Paul, by mentioning China, where also I worked closely with the Chinese local governments together and they’re pretty decent. They want also companies to come and they want tax dollars to flow and they want companies to stay. And that was very refreshing to see versus what I got to see in Europe. And that is somewhat similar to now what I feel here is going on in America. I think it’s quite amazing what SPARK is doing. 

When I think of the board members that you assembled, Paul, I’m pretty much in awe of all these individuals that really have a tremendous background and a really civic spirit. I think the civic spirit that they bring along is really very impressive. It’s great to see people stepping forward and spending their time and their capacity, their mental capacity for the greater good. It’s refreshing and it’s really encouraging to see and it’s actually motivating for us. That’s the main point. It’s really motivating to see.

Paul: Yeah, I think one of the things that we’ve been trying to do over the years as you’ve described it, well we have some civic leaders who’ve been involved in the effort for many, many years. But what we like to do in asking you to join the board is to bring new ideas and new energy to the table of people that have experiences in other places in the world. So we really appreciate the fact that you were willing to join the board. 

So my last question is more personal. You and your wife are new to the Ann Arbor area and the region, and I know you’re an avid cyclist, so that’s one thing I’ve learned about you. You’re actively using the bikeways, but tell us a little bit more about your experiences so far in moving here and what are your personal impressions about living here in this community?

Chris: Well, it’s a pretty positive experience so far. I mean, the Americans, I think in the world, are number one about open-mindedness, about welcoming and we felt really taken care of when we came here. Great people reaching out to us, inviting us, and taking care of us. It was really a wonderful start for us. When I think of the area here, I think the nature up north in Michigan is spectacular. It’s really hauntingly beautiful, but actually I really like the landscape around Ann Arbor, too. It’s really pleasing and that was for me a surprise. Yeah, how beautiful the Ann Arbor area is. And of course Ann Arbor is a college town is just phenomenal what it offers in terms of culture, in terms of, and the vibe. I mean, it’s just fun. It’s just fun.

Paul: And I know one of the things that we do appreciate also about a company, I know I’m a season ticket holder to UMS and I know that WACKER has been a strong supporter since arrival and having an opportunity to support bringing world-class symphony orchestras here for us to all enjoy. So I want to thank you for that support for the community. 

Well, so Chris, anything as we sum up that you’d like to share or I can let you go for the rest of your day?

Chris: Paul, it’s really a pleasure working with SPARK and it’s phenomenal to see how this is developing. And I thought this AI initiative now coming through to an hour was just great. It was just mind boggling, I think. Fantastic. I would love to see more of that.

Paul: Yeah, we’re very excited. I mean the university leadership in that, I think what you’re talking about is the recent announcement of the partnership with the federal lab that is going to create a very significant data center here with computing power that is just going to be incredible. So yeah, I think we’re all going to benefit from that presence and what it’s going to mean for the companies that are here. 

Well anyway, Chris, thanks for taking time to speak with us today.

Chris: Oh, thank you. Appreciate it.

Paul: And I want to thank our audience for listening and learning more about those leaders and organizations working hard to create the Ann Arbor Region’s economic future. These conversations are brought to you by Ann Arbor SPARK. For more information about Ann Arbor SPARK, you can find us on the web@annarborusa.org. We’re also on Facebook, Instagram, and LinkedIn.