Coatings World - July 2014

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 Pau-lista, 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 ac-
celerated 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 open-
ing 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 popula-
tion concentrations in the world. According to the Indonesian Ce-
ment Association, the national consumption of cement totaled 64
million tons in 2013. With roughly 38 million tons, Java is absorb-
ing 60 percent of the total production volume. Major growth op-
portunities 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.

Sika AG
Baar, Switzerland
www.sika.com

PUBLIC COMPANY YEAR ESTABLISHED: 1910

REVENUE: $3.118 billion s

(2012: $2.834 billion)

MARKETS SERVED

• Adhesives • Sealants • Protective coatings

KEY EXECUTIVES

Paul Hälg, chairman of the board; Jan Jenisch, CEO; Group management: Paul Schuler, EMEA; Jose Luis Vazquez, Latin America; Silvio Ponti, building systems and industry;