Sika’s unchanged investment strategy is geared to consolidating the global presence it has built up during the last few years, and unlocking new markets or expanding its activities to this end. To encourage focused growth, selected markets, customers, technologies, and products are prioritized. Sika continues to invest in production and logistics capacities at its sites in order to strengthen local supply chains, and its decentralized market development policy brings the company very close to its customers.
In the year under review, Sika invested CHF 154.9 million (2015: 142.6 million), which is equivalent to 2.7% of net sales. At 54%, the key focus for investment was the expansion of production capacity (2015: 52%). The breakdown of the remaining investments is as follows: 19% (2015: 18%) was used for rationalization, 24% (2015: 28%) was needed to replace existing facilities, and 3% (2015: 2%) was spent on environmental protection, health and safety, and quality control. The share of investment in the emerging markets was 37% (2015: 38%), underscoring Sika’s growth strategy.
Sika will continue to invest in those regions where the Group can tap into new markets and generate growth, including North and Latin America, the Middle East, Russia, Eastern Europe, China, Indonesia, Japan, Vietnam, Australia and Africa.