Research & Development

Read about the New Technology Center in Zurich

Innovations and growth. Innovations are significant elements in enterprise growth strategy. They contribute essentially to the target of achieving mid-term organic growth of eight to ten percent on annual average. Correspondingly significant in the enterprise is research and development, R&D. The R&D strategy that Sika has pursued for some years is highly successful; this is reflected in numerous patents, many new products and a high rate of innovation. In the year under review Sika generated 34% of sales (2007: 34%) with products that have been on the market a maximum of five years.

The driving forces in research and development are on one hand global trends, such as the desire for constantly more efficient methods of construction, the demand for energy-saving construction materials or the necessity to save weight in vehicle manufacturing. On the other hand, due to differing local construction industry specifications, considerable product adaptations to respective requirements are necessary.

R&D strategy. The company R&D strategy includes centralized and decentralized components that are logically enmeshed. Centrally organized research handles long term research programs, provides analytical services and establishes R&D management for the entire Sika Group. These responsibilities are consolidated in the subsidiary Sika Technology AG . The long term research programs are aligned with the core competencies of the company (see inside of front cover) and focus on solutions for sealing, bonding, damping, reinforcing and protecting load-bearing structures in construction and manufacturing industries.

The objectives of research and development endeavors are manifold. Decisively improving existing products or opening new fields of application for them can thereby stand as much in focus as the search for new raw materials for entire product families. So-called Corporate Expert Teams play a crucial role in the assessment and execution of research and development projects. Depending on the technology, these teams comprise representatives of various regional departments, from marketing to fabrication and logistics to purchasing. The teams ensure that all relevant aspects of a project are given consideration.

The second component in the R&D strategy is the adaptation of products, solutions and applications to regional or customer-specific requirements. Eleven technology centers in America,Europe and Asia assume this task in close collaboration with regional, customer-oriented support centers. The support centers in the country subsidiaries can quickly adjust for example concrete admixtures to local climatic conditions or locally obtainable aggregates such as gravel or sand. These centers are in addition responsible for finding appropriate regional or local raw materials to facilitate cost-optimized manufacturing of products on site.

Basic research. Sika allocates limited capacity for basic, fundamental research. The company, however, collaborates with first-class universities, including institutions in Switzerland, the USA, in Germany, Spain, France, China and India. Professional and geographic proximity often lead swiftly and unbureaucratically to solutions with advantages for both parties. In addition, Sika attempts to counteract the shortage of engineers and chemists prevailing in some countries with sizable engagement, thereby bringing the company closer to suitable candidates for employment.

As in previous years Sika participated in various international projects and was active among other organizations in the NanoCem Consortium. This European research network studies phenomena occurring in nano and micro dimensions that can influence the performance of cementitious materials and the products and structures made from them. Sika Technology AG actively took part in different projects funded by the European Union:

– FUTURA: this project has the objective of establishing multifunctional materials in the automotive industry, and realizing modular, scalable approaches to design and production of vehicles (www.futura-ip.eu).

– MUST: project partners are collaborating on chromium-free corrosion protection for steel and light alloys (www.must-eu.com).

– I -SBB: safe and intelligent construction methods for earthquake-endangered areas

– TunConstruct: collaborative European research and development of innovative methods, materials and machines for tunnel construction (www.tunconstruct.org).

Sika Technology AG is also active in the United Nations Sustainable Building & Construction Initiative, or SBCI. The SBCI targets the establishment of solutions in the construction industry worldwide that are based on sustainable development principles.

R&D management . Expenditures for research and development in the Group amounted to CHF 74.1 million (2007: CHF 65.2 million) in the year under review or 1.6% of sales (2007: 1.4%). The R&D budget was apportioned in accordance with strategic priorities. Thus as in previous years roughly three-fourths of the budget were invested in product development and maintenance.

The Sika Group’s R&D organization is adapted to enterprise strategy and focuses on research in technology platforms and strategically critical R&D projects. The product development process is uniform worldwide in order to enter the market with patented products as quickly as possible. Sika wants not only to be swift, but also especially efficient, striving therefore in addition for cost leadership for its products in all target markets. In collaboration with corporate operations the R&D organization also works to tighten the comprehensive product range and thereby to simplify processes and lower costs in marketing, production and distribution.

Product development and market introduction process. On the way from an inspirational idea to market introduction, new developments traverse a clearly defined, sevenstage Product Creation Process (PCP ), and must thereby repeatedly fulfill very stringent internal and external standards for cost-effectiveness and environmental, health and safety protection. The PCP has the objectives of reducing risks, minimizing costs, shortening time-to-market (TTM) and continuously improving product quality.

Due to the great significance of the PCP for Sika AG ’s innovation capability, responsible employees in subsidiaries worldwide are regularly schooled in the application of the process. In addition an interactive training program is available for all Sika employees; this is actively used and thus sensitizes all participants for Sika’s high standards.

The regional technology support centers are responsible for observance of the PCP in their Region, and review the quality of processes regularly with the help of PCP audits. It is thereby ensured that employees’ standard of knowledge is always current and corresponds to the Sika norm, keeping local chemists conversant with the newest technologies. In parallel, innovative ideas from the Regions are collected and leveraged for the Group.

Patents. Sika filed for 70 patents in 2008 (2007: 60). The number of invention disclosures amounted to 84 in the year under review (2007: 90). As in the previous year both divisions introduced numerous new, promising products into the market.