Sika’s unchanged investment strategy is geared to consolidating the global presence ithas 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 thecompany very close to its customers.

In the year under review, Sika invested CHF 238.6 million (2017: CHF 163.4 million), which is equivalent to 3.4% of net sales. CHF 71.5 million were related to the buybacks of the R&D building in Zurich and the Kapaflex building in Düdingen, Switzerland, which were formerly leased. The breakdown of the remaining investments are as follows: Key focus on expansion of production capacity at 45% (2017: 52%), 33% (2017:28%) was needed to replace existing facilities, 16% (2017: 16%) was used for rationalization, and 6% (2017: 4%) was spent on environmental protection, health and safety, and quality control. The share of investment in the emerging markets was 42% (2017: 39%), 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.