Sika investing in new mortar factory in China

Sika is to commence operations at a new factory in Chongqing, a city with 30 million inhabitants located in southwestern China. With this new production facility for liquid membranes and mortar products, the globally active Zug-based construction materials company is seeking to exploit strong growth in the Chinese construction sector, further details of which can be found in a press release.

Accordingly, Sika anticipates average growth in the Chinese construction sector of +4.5 percent over the next three years. Around the Chengdu-Chongqing metropolitan area, a new business district with nearly 100 million inhabitants is being created. According to the information in the press release, companies from the automotive, finance and logistics industries will primarily establish a presence in the region.

As part of its current five-year plan, the Chinese government is focusing on expanding transport and energy infrastructure. To this end, a sum of 8 trillion Swiss francs is to be invested in technology and infrastructure projects.

The specialty chemicals company based in Baar in the canton of Zug is now seeking to benefit from these planned construction activities. With the help of expanded production capacities through the new factory in Chongqing, Sika is aiming to supply the Chinese construction sector on a local basis as part of its commitment to operating close to its customer base.

“This new plant reinforces our market position in the important Chengdu-Chongqing business district, which is a core area in China. The result will be a mega-agglomeration that will expand the domestic economy and will generate enormous business potential for Sika. Thanks to the additional production capacity, we will strengthen our position in this booming market and continue to target above-average growth”, comments Mike Campion, Regional Manager Asia/Pacific at Sika, in the press release.