Sika Targets China Renovation Market and Global Data Centre Growth
Growth Opportunities and Strategic Focus for Sika
China Market Adaptation and Renovation Focus
June 5 (Reuters) - Sika sees growth opportunities in China's renovation market and infrastructure construction in the U.S., the Swiss construction chemicals manufacturer's CEO Thomas Hasler said in an interview with Finanz und Wirtschaft published on Friday.
Fragmented Business Approach in China
• Sika has further fragmented its business in China to adapt to the local market, which is not uniform, Hasler said.
Shift from New-Build to Renovation Projects
• Sika has re-calibrated its business model there, originally very heavily focused on new-build projects, to also focus on the renovation business, especially in already almost saturated markets such as Shanghai, Beijing and Guangzhou.
Automotive Sector Growth in China
• It sees sustained growth in its automotive business in China, despite the withdrawal of subsidies for EVs.
U.S. Infrastructure and Market Expansion
Opportunities in U.S. Infrastructure Construction
• Sika sees growth opportunities in U.S. infrastructure construction, which is largely unaffected by President Donald Trump's aversion to renewables, Hasler added.
Market Share in Traditional Infrastructure
• Sika is expanding market share in the construction of traditional infrastructure such as roads or bridges there, while seeing a slump in the commercial construction sector, where reshoring was a significant growth driver until the tariff escalation.
Data Centres as a Global Growth Driver
Importance of Secure Data Centres
• Hasler deemed data centres "a definite growth driver" as operators want the most secure buildings to avoid disruptions to operations.
Expansion in Europe and Asia
• He said the company's data centres pipeline is full as the sector is booming in Europe and Asia too.
Market Outlook in Europe
Signs of Improvement in Germany and France
• Sika senses hope for improvement among its customers in markets such as Germany and France due to rising figures for building permits, despite ongoing weakness.
Editorial Note
(Writing by Linda Pasquini; Editing by Alexander Smith)
