Sika and Sulzer Launch Joint Venture to Revolutionize Plastics Recycling in the Construction Industry

Sika and Sulzer Launch Joint Venture to Revolutionize Plastics Recycling in the Construction Industry

(IN BRIEF) Sika and Sulzer have signed an MoU to establish a joint venture focused on plastics recycling in the construction industry. The venture aims to address the inefficiencies in current recycling methods by combining mechanical and chemical processes to create high-quality recycled materials. The collaboration seeks to reduce CO₂ emissions, support ESG goals, and help the construction industry achieve greater sustainability. The joint venture will begin pilot projects in Germany, Austria, and Switzerland in late 2025, with the companies working together to develop a circular economy for construction plastics.

(PRESS RELEASE) BAAR, 4-Jun-2025 — /EuropaWire/ — Sika and Sulzer have announced the signing of a memorandum of understanding (MoU) to form a joint venture aimed at advancing plastics recycling in the construction industry. The new venture will leverage Sika’s deep expertise in polymer applications and high-performance building materials, alongside Sulzer’s leading process knowledge in chemical recycling. The independent company, headquartered in the Zurich area, will be equally owned by both partners, each holding a 50 percent stake. The venture is set to begin operations in the second half of 2025, with pilot projects planned in Germany, Austria, and Switzerland.

Each year, the European construction industry generates approximately two million tons of plastic waste. Recycling these materials has been a challenge due to the complexity, inefficiency, and technical demands of current methods. As a result, most construction plastics are disposed of at the end of their lifecycle, as existing mechanical recycling technologies produce low-quality materials unsuitable for reuse.

Through this joint venture, Sika and Sulzer aim to transform this landscape by developing an integrated system for collecting, processing, and reusing construction plastics. The system will combine mechanical and chemical recycling processes to ensure high-quality materials are recovered and reintroduced into the production cycle.

Ivo Schädler, Head of Construction at Sika, commented, “This joint venture is a major step toward greater sustainability and circularity in the construction industry. By converting waste into high-quality raw materials, we can significantly reduce Scope 3 CO₂ emissions, helping companies meet rising ESG standards and unlock new avenues for value creation. Together, we are driving the transformation of the construction industry toward a more sustainable future.”

Michael Schüpp, Head of Ventures at Sulzer, added, “Sulzer’s technologies are essential in enabling industries to reduce emissions, reuse resources, and recycle materials. Combining our expertise with Sika’s will help the construction industry transition to a fully circular economy, promoting sustainability and efficiency for a cost-effective and low-emission future.”

The joint venture will aim to address critical gaps in the construction industry’s value chain by offering a comprehensive, cost-effective service package. It will also collaborate with local partners, including logistics and recycling companies, to integrate recycled materials back into the manufacturing process, creating a more circular system for the construction industry.

SIKA AG CORPORATE PROFILE

Sika is a specialty chemicals company with a globally leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protection in the building sector and industrial manufacturing. Sika has subsidiaries in 102 countries around the world and, in over 400 factories, produces innovative technologies for customers worldwide. In doing so, it plays a crucial role in enabling the transformation of the construction and transportation sector toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.76 billion in 2024.

SULZER CORPORATE PROFILE

Sulzer is a leading international provider of critical applications for core infrastructures and processes in the world’s most important industries. Sulzer’s integrated solutions create value by enabling energy efficiency, the reduction of carbon emissions and pollution, and better process efficiency. Customers benefit from innovation, performance and quality from the responsive network of 160 world-class manufacturing facilities and service centers around the world. Sulzer has been headquartered in Winterthur, Switzerland, since 1834. In 2024, 13,500 employees generated sales of CHF 3.5 billion. Sulzer’s shares are traded on the SIX Swiss Exchange (SIX: SUN).

Media Contact:

Dominik Slappnig
Corporate Communications and
Investor Relations
+41 58 436 68 21
slappnig.dominik@ch.sika.com

SOURCE: Sika AG