12/06/2024
Sika opened a new plant in Liaoning, the largest province in northeastern China. This site will manufacture a full range of products, including mortars, tile adhesives, and waterproofing solutions. This highly efficient new plant enables Sika to meet the market demands, whilst significantly reducing logistical distances.
The Liaoning plant will cater to Sika customers in three provinces in northeastern China, with a population of more than 98 million, as well as east-central Mongolia. In addition to state-of-the-art production lines, the new facility provides office spaces, laboratories, warehousing, and logistics. Currently, Sika has 34 manufacturing sites in China and has been active in the Chinese market for over three decades.
"The new mortar plant in Liaoning is an important milestone in our growth strategy. It allows us to better serve our customers in Northeast China with faster delivery times and improved service levels. This expansion reinforces our commitment to quality and excellence, while aligning with Sika’s global sustainability goals." Philippe Jost, Regional Manager Asia/Pacific
The Liaoning plant will produce a range of mortar products that incorporate up to 20% recycled raw materials during the manufacturing process, such as waste dust and mineral waste residues. In addition, Sika has launched an initiative to transition from natural to alternative sands. In 2023, Sika China already had reached a 13% alternative sand ratio in its mortar production, with half of the plants contributing to this initiative. Looking ahead, Sika China plans to replace 50% of its overall sand consumption with alternative options by 2028.
Infrastructure investments into China's construction industry
The Chinese construction market is estimated at CHF 4.2 trillion in 2024, and is forecast to grow at a CAGR of 3.9% until 2028. As part of its current five-year plan, the government has earmarked over half a trillion Swiss Francs in bond issuance for infrastructure projects. In addition, the country is investing CHF 12 trillion in green transition to achieve net zero emissions by 2060, leading to demand for sustainable solutions.