Markets Served: Adhesives, Sealants, Protective coatings

Sika supplies the building and construction industry as well as manufacturing industries (automotive, bus, truck, rail, solar and wind power plants, facades). Sika is a leader in processing materials used in sealing, bonding, damping, reinforcing and protecting load-bearing structures. Sika’s product lines feature high-quality concrete admixtures, specialty mortars, sealants and adhesives, damping and reinforcing materials, structural strengthening systems, industrial flooring as well as roofing and waterproofing systems.

All regions achieved significant sales increases and market share gains during fiscal 2015, with double-digit sales growth in the core markets of the U.S., Mexico, Africa, the Middle East, Southeast Asia and the Pacific. According to Sika’s Annual Report, in the past business year, the EMEA region (Europe, the Middle East and Africa) increased sales by 5.6 percent, benefiting from the good business performance in Eastern Europe, Africa and the Middle East. Sales in Western Europe even slightly exceeded the previous year’s strong result. The greatest sales growth was achieved in the Latin America region. Despite a challenging market environment in Brazil, market share gains in other countries resulted in sales rising by 9.5 percent. North America recorded a sustained high level of growth, increasing sales by 8.4 percent. In the U.S., Sika’s continued development of the market and the healthy construction sector, where investment in infrastructure and commercial projects is increasing, led to significantly higher volumes. Growth in the Asia/Pacific region slowed to 2.1 percent owing to the market downturn in China. Although double-digit sales increases were achieved in Southeast Asia and the Pacific.

Sika’s accelerated growth in the emerging markets continued to generate  results, with sales rising by 7.9 percent. The high-margin mortar business – a core component of Sika’s Strategy 2018 – exhibited an above-average performance, with sales growth of 12.9 percent. Sika further expanded its fast-growing mortar business in the past year by opening five new factories and completing three acquisitions.

The accelerated expansion in growth markets continued in 2015 and new factories were opened in all regions. “In the EMEA region, the expansion of production capacity in the form of new factories in Dubai, Nigeria, Ivory Coast, Russia, and la Réunion will ensure additional future growth,” said Sika CEO Jan Jenisch.

“Furthermore, Sika established new national subsidiaries in Tanzania and Ethiopia. In the Latin America region, new factories were opened in Paraguay and Argentina, while in North America, Sika expanded its production capacities by adding a new facility in Philadelphia. In the Asia/Pacific region, Sika’s first factory in Sri Lanka was opened, while a new national subsidiary was established in Myanmar.

Sika Opens Fourth Plant in Canada

Sika has inaugurated a mortars and concrete admixtures plant in Vancouver. The new facility is the Group’s fourth in Canada. It will supply the Pacific Northwest, a region that includes the major cities of Vancouver, Seattle and Portland. The new plant marks the continued execution of Sika’s supply chain strategy in North America, the aim of which is to expand production capacities in conurbations and major cities.

Christoph Ganz, regional manager North America: “Local production will be very beneficial to customers in the region by providing improved product availability, reduced lead times and faster deliveries. Moreover, eliminating the cost of shipping products from our Edmonton and Montreal plants and using locally sourced raw materials will enable us to optimize our cost structure.”

The new facility in Vancouver includes a modular mortar plant and blending equipment for the production of a wide range of concrete admixtures. In addition to the production area, the new building also houses a quality control laboratory, a warehouse and office space for administrative and sales personnel.

This latest addition brings the number of Sika production sites in North America to 18, four of which are in Canada. In December 2015 a mortar production facility opened in Philadelphia, Pennsylvania to serve the major cities on the East Coast of the U.S.

Markets Served: Adhesives, Sealants, Protective coatings

Sika supplies the building and construction industry as well as manufacturing industries (automotive, bus, truck, rail, solar and wind power plants, facades). Sika is a leader in processing materials used in sealing, bonding, damping, reinforcing and protecting load-bearing structures. Sika’s product lines feature high-quality concrete admixtures, specialty mortars, sealants and adhesives, damping and reinforcing materials, structural strengthening systems, industrial flooring as well as roofing and waterproofing systems.

Sales reached record levels in all regions and all relevant growth targets for 2014 were exceeded. According to Sika’s Annual Report, eight new factories and 70 new patents accelerated development and expansion in the emerging markets continued in 2014. New factories were opened in Brazil, Mexico, Indonesia, Singapore, India and Serbia. The founding of six new international subsidiaries in Sri Lanka, Bosnia-Herzegovina, Albania, Mozambique, Ivory Coast and Nigeria has created a basis for tapping these new markets. In the U.S., two new production facilities were commissioned in Atlanta, Georgia and Denver, Colorado.

Sika has expanded its production and service capacity in Paraguay’s capital Asunción to meet the rising demand in the infrastructure and residential construction sectors. The company has opened a mortar plant with additional production facilities for concrete admixtures and liquid applied membranes to become fully operational in 2015. The plant significantly enlarges Sika’s production and service capacity in Paraguay. It will supply the market with the full range of Sika mortar products and concrete admixtures as well as liquid applied membranes for roofing and façade solutions. A differentiating factor in the market will be the new concrete lab for product developments and services to customers: it is the first of its kind in Paraguay’s construction chemicals sector and will allow Sika to strengthen its customer focus by providing tailored solution for their specific requirements in the local market. Strong market position The new plant represents a major step in accelerating the growth and strengthening the company’s market position in Paraguay. In 2013, Sika had entered the market by acquiring the industry leader Inatec SRL with subsequent operational expansion and broadening of Sika’s local product portfolio. Economic growth in Paraguay is expected to reach 4.5 percent in 2015. With the expansion of its production and service capacity, Sika Paraguay is well positioned to benefit from the increasing construction activities in both the residential and infrastructure sectors.

Sika also recently acquired the remaining shares of the Italian based Addiment Italia from its joint venture partner Buzzi Unicem. The company is active in the production and sale of concrete admixtures and cement grinding aids. The transaction will strengthen Sika’s production set up in Italy and increase its market presence. Addiment Italia generated sales of €14 million in 2014.

In 2003 Buzzi Unicem and Sika AG formed a joint venture in order to produce an innovative range of construction chemicals that enhance the quality and performance of concrete and cement.

Sika Receives Award at PACE Competition

Sika has won two awards in the 2015 Automotive News PACE (Premier Automotive Suppliers’ Contribution to Excellence) Award recently taking place in Detroit, Michigan. The renowned award competition for automotive suppliers honor game-changing innovations in product, manufacturing process and information technology.

Sika was a product innovation award winner for its Sikaflex Ultra-High Modulus Adhesive (UHM) and also took home an Innovation Partnership Award through its collaboration with BMW.

Sikaflex UHM is a high modulus, fast cure adhesive material currently used to bond the CFRP (Carbon Fiber Reinforced Plastic) Life Module to the aluminum chassis Drive Module on the BMW i3 and i8. The innovative adhesive meets the growing demand in mixed material bonding and is ideally suited for structural bonding performance.

Based on Sika’s patented i-Cure technology, Sikaflex UHM also reduces the carbon footprint in vehicle manufacturing. The innovation allows BMW to radically change the way the i3 is manufactured, away from conventional technique, and eliminates the complexity of traditional body shop welding.

The PACE Award committee also honored BMW and Sika with the Innovation Partnership Award. The panel reviewed the collaborative efforts of all 36 PACE Finalists with their respective OEMs and it recognized BMW for its unique high level of collaborative behavior with Sika in the development of BMW i3.

Markets Served: Adhesives, Sealants, Protective coatings

Sika supplies the building and construction industry as well as manufacturing industries (automotive, bus, truck, rail, solar and wind power plants, facades). Sika is a leader in processing materials used in sealing, bonding, damping, reinforcing and protecting load-bearing structures. Sika’s product lines feature high-quality concrete admixtures, specialty mortars, sealants and adhesives, damping and reinforcing materials, structural strengthening systems, industrial flooring as well as roofing and waterproofing systems.

All regions participated in the growth achieved. Double digit growth was recorded in  Asia/Pacific (+12.7 percent) and Latin America (+15.1 percent). The EMEA region (Europe, Middle East and Africa) performed well, posting growth of 8.5 percent. Market conditions remained difficult in North America, where sales rose by 2.3 percent. Accelerated expansion in the emerging markets produced gratifying sales growth of 17.2 percent in  local currencies.The proportion of sales generated by the emerging markets increased to 38 percent.

Sika’s investment strategy is geared to accelerating expansion in the growth markets. In 2013, a total of ten new factories were opened in Asia, Latin America, Africa and Eastern Europe. The new production plants in Russia, Ukraine, Romania, Colombia, China, Vietnam, Laos,Iraq, Angola and South Africa are key investments to continue driving the company’s successful growth strategy.

Sika has agreed to acquire Lwart Química Ltda., a supplier of waterproofing products in Brazil. The acquisition strengthens Sika’s position in the Brazilian construction chemicals market and complements Sika’s geographical footprint in Brazil. Last year Lwart Química generated net sales of CHF 33 million.

Including the newly acquired production plant in Lençóis Paulista, Sika now operates five factories in Brazil with a workforce of more than 700 employees. The acquisition extends the product portfolio and strengthens Sika’s position in the Brazilian construction chemicals market. It also offers cross-selling opportunities, partly through the established professional contractor customer base and partly through the distribution channel.

Sika has also acquired a manufacturing facility located in South Korea in order to build up a locally produced flooring and coating range. With this additional production capacity, Sika is taking another step in expanding its supply chain in the Asia/Pacific region.

The acquired facility in Gunsan, South Korea, manufactures and distributes flooring and coating products based on epoxy resins, acrylic emulsions and polyurethane with a workforce of 28 employees.

The additional production capacity, will enable Sika Korea to strengthen its range of locally produced flooring and coating products and expand the production of its complete range of products. Sika will leverage the distribution channels of the acquired facility with its product range and further expand the network of sales outlets with the enhanced product portfolio. Sika is also acquiring the business of Klebag Chemie AG, a manufacturer of adhesives for the sealing, bonding and flooring markets.

Sika Expands its Supply Chain in Indonesia

Sika extended its supply chain with a new manufacturing plant in Surabaya, East Java, Indonesia. The plant comprises a land area of 20,000 m2 and will increase Sika’s production capacity in mortars and concrete admixtures in the growth market Indonesia.

At a ceremony held at the beginning of May, representatives of Sika’s Senior Management and Sika Indonesia inaugurated Gresik Plant in Surabaya, the latest manufacturing investment in the second largest city after the capital, Jakarta. The new plant will manufacture mortars and concrete admixtures. Sika is already present in Indonesia with offices and production plants in Cileungsi, Bogor in West Java, close to Jakarta.

Jan Jenisch, CEO of Sika: “One of our strategic goals is the accelerated build-up of emerging markets, including investment in our supply chain capacity. Last year, we opened 10 new factories in emerging countries, with eight more to follow this year. The opening of the Surabaya plant in Indonesia – one of our most promising emerging markets – is the first step in the consequent execution of our supply chain growth strategy in 2014.”

Indonesia, and in particular Java, has one of the largest population concentrations in the world. According to the Indonesian Cement Association, the national consumption of cement totaled 64 million tons in 2013. With roughly 38 million tons, Java is absorbing 60 percent of the total production volume. Major growth opportunities include the construction of infrastructure with highways connecting the East and West of Java, new power plants as well as industrial, commercial and housing projects.