Sika further expands its concrete admixtures business in Western/Southern China
Sika acquired a majority stake of Sichuan Keshuai Additive Co., Ltd, located at Chengdu,Sichuan Province, the west of China in 2008. This year the Joint Venture builds a new factory in Kunming, Yunnan Province, the south of China with an investment of RMB 24 million in Phase I.
The Kunming new plant opening ceremony was held on May 12, 2010, with participants of around 200 guests and governmental officials, Sika announced to officially entry the Yunnan, Guangxi and Canton market with a brand new and advanced plant.
Kunming plant started the ground construction in Dec 2009.
The Admixture market in china is dominated by the low to mid end applications like naphthalene. Before the acquisition of the Keshuai business in Chengdu Sika was mainly active in the higher application for PCE-polymers. For the PCE-business Sika became technology leader and number two in sales. For the increase of our total market share, we have to grow the business with the admixtures for the lower rements. The acquisition/JV of the Keshuai plant in Chengdu was the first step
for this strategy. The acquired plant was market leader in the West of China and has excellent relationship to the customer. With this new sales channels and the successful concept of the SNS-business, we have to strengthen our position in the market.
The new plant in Kunming (Yunan province) is to cover the Yunnan, Guangxi and Canton
market, and to export SNS-powder. Yunan, Guangxi and Canton market is fast growing.
Besides the local market, we have exports requirements to Sika sister companies. Canton
Huangpu port and Guangxi Qinzhou port are the perfect start for exports.
Kunming plant will contribute more to the success of Keshuai, the first acquisition for Sika in China. With the favourable cost advantage for freight and local raw material supply chain, together with the favourable tax policy by Kunming government, we hope Kunming plant will be another milestone of success for Sika in West/ South China. N
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