MOSCOW (MRC) -- Swiss specialty chemicals company Sika is continuing to increase its production capacity in Russia through new and expansion investments, said the producer in its press release.
In Volgograd, in southern Russia, a mortar factory and a plant to produce concrete admixtures are being opened. At the existing site in Lobnya, 30 km north of Moscow, a new production facility, which will manufacture polymers for concrete admixtures, is coming on stream.
The investments are aimed at strengthening Sika's position as a market leader in Russia for concrete admixtures.
Over the past three years Sika has increased sales considerably in its target markets in Russia, thus growing faster than the market as a whole. In order to cope with high demand and further increase its market share, Sika is investing in expanding its production capacity in Russia, where it already has three plants in St. Petersburg, Rzhev and Lobnya.
The existing plants will supply the north-west of the country and central Russia, while the plant in Volgograd will supply product technology to the construction industry in southern Russia. As a result, transport times and costs for customers will be optimized.
Paul Schuler, Sika Regional Manager EMEA: "Despite cautious forecasts for 2015, Sika is confident that there is long-term potential in Russia's infrastructure and industrial construction sectors. The new production facilities will contribute greatly to improving our cost structure in Russia, as transport costs and import duties will be eliminated. This means that Sika is very well positioned to consolidate its long-term market leadership, in particular for concrete admixtures, and to gain further market share."
As MRC informed previously, Sika AG reported that its net sales for the first quarter of 2015 declined 0.9% to 1.195 billion Swiss francs from 1.206 billion francs in the same quarter last year. However, at constant exchange rates, sales for the quarter rose by 5.1% to 1.195 billion francs. Gains in all regions contributed to this impressive performance, with North and Latin America even posting double-digit growth. It is planned to open between seven and nine factories in 2015.
Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. Sika has subsidiaries in 90 countries around the world and manufactures in over 160 factories. Its more than 16,000 employees generated annual sales of CHF 5.6 billion in 2014.