Stock Markets June 5, 2026 08:34 AM

Sika Targets Renovation Work in China and Traditional U.S. Infrastructure for Growth

CEO Thomas Hasler highlights shifts in China strategy, strength in automotive and booming data-center demand as drivers

By Marcus Reed

Sika, the Swiss construction chemicals maker, is reshaping its China operations to capture renovation projects in saturated megacities and is pursuing share gains in U.S. roads and bridges. CEO Thomas Hasler told Finanz und Wirtschaft that automotive demand in China remains steady despite subsidy pullbacks and that data centers are a clear growth area across regions.

Sika Targets Renovation Work in China and Traditional U.S. Infrastructure for Growth

Key Points

  • Sika reorganised its China operations into a fragmented model to reflect local market differences and is increasing focus on renovation projects in saturated cities such as Shanghai, Beijing and Guangzhou - impacting construction and building materials sectors.
  • The company reports sustained automotive business growth in China despite withdrawal of electric vehicle subsidies - relevant to automotive suppliers and materials markets.
  • Sika is expanding market share in traditional U.S. infrastructure projects like roads and bridges while data centers are described as a strong growth driver with a full project pipeline across Europe and Asia - affecting infrastructure, commercial construction and data-center supply chains.

Sika, the Swiss manufacturer of construction chemicals, sees distinct growth avenues in China and the United States, CEO Thomas Hasler said in an interview with Finanz und Wirtschaft published on Friday.

Hasler described a deliberate reorganisation of Sika's China footprint to reflect variations within the market. Rather than operating under a single, unified approach, the company has fragmented its business there to suit regional differences. That adjustment includes a stronger emphasis on renovation work in addition to the new-build projects that historically dominated the company's China strategy. The move toward refurbishment is particularly targeted at nearly saturated urban markets such as Shanghai, Beijing and Guangzhou.

On automotive demand in China, Hasler indicated the company continues to see sustained growth in that segment. That development persists even after the removal of subsidies for electric vehicles, according to his remarks.


Turning to the U.S., Hasler said Sika identifies growth potential in traditional infrastructure construction. He noted that expansion in roads and bridges is largely proceeding independently of political debates over renewable energy, referencing the context of President Donald Trump’s opposition to renewables. Within the U.S. construction market, Sika is increasing its market share in those established infrastructure projects, while the commercial construction sector has shown a decline. Hasler linked the earlier commercial construction uplift to reshoring activity, which had been a growth driver until tariff escalation intervened.

Data centers emerged as a pronounced area of opportunity in Hasler’s comments. He called data centers "a definite growth driver," noting operators’ preference for highly secure buildings to minimise operational disruptions. He added that Sika's pipeline for data-center work is full and that the sector is experiencing strong activity in Europe and Asia as well as other regions.


Across parts of Europe, Hasler said Sika detects signs of cautious optimism among customers. In markets such as Germany and France, rising building-permit figures have generated hope for improvement, even though weakness in those markets persists.

The CEO's observations outline a strategic shift in geographic and segment focus for Sika: tailoring the China approach toward renovation in dense urban centres, capitalising on traditional U.S. infrastructure projects, maintaining momentum in automotive interiors and components in China despite subsidy changes, and pursuing robust demand from the fast-growing data-center sector. The comments were delivered in the interview published on Friday.

Risks

  • Commercial construction in the U.S. has declined, and prior momentum from reshoring was disrupted by tariff escalation - a risk for firms exposed to commercial real estate and construction services.
  • Markets in Germany and France remain weak despite rising building permits; improvement is not guaranteed - a risk for European construction and building-materials demand.
  • Changes in government subsidies, such as the withdrawal of electric vehicle incentives, could alter demand dynamics; while Sika currently sees sustained automotive growth in China, policy shifts remain an uncertainty for automotive-related sectors.

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