Stock Markets June 5, 2026 08:01 AM

Sika Repositions in China, Targets U.S. Infrastructure and Data Centre Construction for Growth

CEO Thomas Hasler says the construction chemicals group has shifted strategy in China and sees data centres and traditional U.S. infrastructure as key growth areas

By Ajmal Hussain

Sika AG is modifying its China strategy to capture renovation demand in saturated urban centres while pursuing expansion in U.S. infrastructure projects and data centre construction globally, CEO Thomas Hasler told Finanz und Wirtschaft. The company has fragmented its Chinese operations and broadened its focus from new-builds to include refurbishments, and reports a full pipeline of data centre work amid a regional boom.

Sika Repositions in China, Targets U.S. Infrastructure and Data Centre Construction for Growth

Key Points

  • Sika has fragmented its China business to align with regional differences and shifted from a near-exclusive focus on new-builds to include renovation, targeting saturated urban centres such as Shanghai, Beijing and Guangzhou - impacts construction and real estate renovation markets.
  • The company sees growth opportunities in U.S. infrastructure projects, gaining share in roads and bridges while commercial construction slows - impacts U.S. infrastructure and commercial construction sectors.
  • Data centres are identified as a clear growth driver with a full pipeline, reflecting demand in Europe and Asia as well as other regions - impacts data centre construction and related supply chains.

Sika AG is reorganizing how it serves China and scouting growth pockets in the United States and elsewhere, according to comments from CEO Thomas Hasler in an interview published on Friday by Finanz und Wirtschaft.

Hasler said Sika has further fragmented its China operations to better reflect a market that is not uniform. The company has re-calibrated a business model that had been heavily weighted toward new-build projects so that it now also targets renovation work. That shift is especially relevant in cities described as almost saturated, including Shanghai, Beijing and Guangzhou.

On the automotive front, Hasler told the publication Sika continues to see sustained growth in China despite the withdrawal of subsidies for electric vehicles. He did not provide additional figures in the interview, but presented the automotive segment as an ongoing area of expansion.

Turning to the United States, Hasler identified opportunities in infrastructure construction. He said this segment is largely unaffected by President Donald Trump’s aversion to renewables and that Sika is expanding market share in traditional infrastructure projects such as roads and bridges. At the same time, Hasler noted a slump in the U.S. commercial construction sector. He attributed earlier commercial growth in part to reshoring, which had been a notable driver until the escalation of tariffs.

Data centres were singled out as "a definite growth driver," Hasler said, explaining that operators prioritise the most secure buildings to avoid operational disruptions. He added that Sika’s data centre pipeline is full as the sector is booming in Europe and Asia as well as other regions.

Finally, Hasler said Sika senses cautious optimism among customers in markets such as Germany and France. He pointed to rising building permit figures as a sign of potential improvement, while also acknowledging ongoing weakness in those markets.


Context and business implications

  • Sika has adapted its China footprint to capture demand across a heterogeneous market rather than relying solely on new-build work.
  • The company is pursuing growth in traditional U.S. infrastructure and data centre construction globally, while noting a pullback in U.S. commercial construction that had previously benefited from reshoring.
  • Automotive activity in China remains a growth area for Sika despite changes to EV subsidy policy.

Risks

  • Continued weakness in commercial construction could limit Sika’s growth in that segment, affecting revenue from commercial building projects.
  • Tariff escalation that previously influenced reshoring dynamics may continue to weigh on commercial construction demand, particularly in markets tied to manufacturing relocation decisions.
  • Overall market weakness in countries such as Germany and France, despite rising building permit figures, creates uncertainty about the pace and durability of recovery for construction-related demand.

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