Argentina, Mexico Boost Sika Sales

The Argentine and Mexican operations of Zurich-based Sika posted “above average” sales growth last year, supporting the regional to a 3.2 percent expansion overall compared with 5 percent in 2016, the company annual report stated.

Sika is investing in Mexico, Argentina and Central America. However, construction activity in the region is still subdued in the countries that are more dependent on the raw material sector, including Brazil.

Mexico Booming

Sika also announced an investment in a new Mexico factory – its fifth in the country – for mortar products and concrete admixtures in Coatzacoalcos that will improve the national supply chain in Mexico, “a strongly growing market,” the company said. The new plant will take over concrete admixture manufacturing that previously was done at Villahermosa.

José Luis Vázquez, Sika’s regional manager for Latin America said, “The new production site at Coatzacoalcos will strengthen our position in one of Mexico’s four main business centers. From here, we can supply construction projects in the metropolis of Mexico City, as well as the booming tourist centers on the Gulf of Mexico,” in a March 2018 statement.

“The acquired brands of Grupo Industrial Alce have strengthened Sika’s presence in Mexico in respect of both major projects and local specification capabilities. Moreover, the additional production site close to Mexico City facilitates the rapid supply of liquid-applied and bituminous membranes to this huge metropolis,” the company said.
In December, Sika acquired the waterproofing and roofing business of Grupo Industrial Alce, extending the brands it has on sale in Mexico.

In 2016, Sika sales of products to end users at building material stores rose by 25 percent, the company said.

Agentina and Central America

In Argentina, the company recently launched Sikalastic-560 Fiberado – a waterproofing agent with added fiber, and SikaBit S-51 – used for waterproofing vertical and horizontal surfaces under ground; the solution combines modified bitumen with an HDPE file.In Central America, Sika established new national subsidiari in El Salvador last year, and in early March in Honduras. According to the company, the new subsidiary customers will benefit from faster supply of Sika products and solutions as well as an expanding product range.

The new Honduras subsidiary will enable Sika to broaden its range of solutions for the private and commercial construction sectors and expand its position in the fast-growing market,” said Christoph Ganz, Sika’s regional manager for the Americas said in a statement. “The new national subsidiary will enable us to optimize the way we procure and import products from the Sika network and continue to efficiently develop the market by providing competitive prices and greater customer proximity.”

Honduras is the second-largest country in Central America, with a population of more than 9 million, said Sika. Medium-term forecasts predict annual economic growth in excess of 4 percent, the company said. The country is investing heavily in its booming textiles sector, tourism, and infrastructure projects such as freeways, a new airport near its capital and new port facilities for container transshipment at Puerto Cortez on the north coast, the statement says.

“There are still challenging situations in Brazil, Peru and Chile,” said Paul Schuler, CEO, in a statement. “In Brazil, the persistently difficult economic and political situation continued to have a negative impact on (2017) business performance.