Sika targets growth from China renovation market, global data centres

• Sika fragmented and re-calibrated its China business model to focus on renovations in saturated markets (Shanghai, Beijing, Guangzhou) rather than primarily new-build projects
• Data centers are deemed 'a definite growth driver' with a full pipeline, as operators prioritize secure buildings to prevent operational disruptions across Europe and Asia
• The company sees sustained automotive business growth in China despite EV subsidy withdrawals and opportunities in U.S. infrastructure construction largely unaffected by policy shifts on renewables

Sika Targets Growth in China Renovation and Global Data Centers

Swiss construction chemicals manufacturer Sika is pivoting its strategy to capitalize on emerging opportunities in China's renovation market and the global data center boom, according to CEO Thomas Hasler in an interview with Finanz und Wirtschaft published June 5.

China Market Strategy:

Sika has restructured its Chinese operations, moving away from its original heavy focus on new construction projects toward renovation opportunities, particularly in near-saturated major cities including Shanghai, Beijing, and Guangzhou. The company has fragmented its business model to adapt to China's non-uniform local markets. Despite the withdrawal of EV subsidies, Sika anticipates sustained growth in China's automotive sector.

U.S. Infrastructure Opportunities:

The company sees significant growth potential in U.S. infrastructure construction, which Hasler noted remains largely unaffected by President Trump's stance on renewables.

Data Centers as Growth Driver:

Hasler identified data centers as "a definite growth driver," with operators demanding highly secure buildings to prevent operational disruptions. Sika reports a full pipeline for data center projects, with the sector experiencing rapid expansion across Europe and Asia in addition to traditional markets.

European Market Outlook:

While acknowledging ongoing weakness in key European markets like Germany and France, Sika sees early signs of improvement through rising building permit figures, suggesting potential recovery among its customer base.

The strategic shifts position Sika to capitalize on infrastructure modernization trends and digital economy growth while adapting to changing dynamics in established construction markets.