Sika Doubles Production Capacity at Indonesia’s Largest Mortar Plant to Meet Growing Market Demand

Sika Doubles Production Capacity at Indonesia’s Largest Mortar Plant to Meet Growing Market Demand

(IN BRIEF) Sika has doubled the production capacity at its Bekasi plant, Indonesia’s largest facility for mortars, to meet the rising demand from infrastructure and building projects. This expansion, along with an increase in distribution points across the country, positions Sika for significant growth in Indonesia’s rapidly urbanizing market. The Bekasi plant now features advanced production lines and serves as a crucial distribution hub, supporting Sika’s broader growth strategy in Southeast Asia.

(PRESS RELEASE) BAAR, 13-Aug-2024 — /EuropaWire/ — Sika has significantly expanded its manufacturing capabilities at the Bekasi plant, Indonesia’s largest facility specializing in the production of mortars, including tile adhesives, grouts, and wall and facade systems. This expansion, which more than doubles the plant’s production capacity, enables Sika to better serve the growing demand from infrastructure, residential, and commercial projects in Indonesia, the fourth most populous country in the world.

Indonesia is one of the top five tile markets globally, making the increased capacity at the Bekasi plant particularly strategic. Originally opened in 2019, the facility now boasts state-of-the-art production lines and enhanced storage capabilities, also functioning as a key distribution hub in the country. Sika’s operations in Indonesia are robust, with more than 600 employees and four mortar production plants, with Bekasi being the largest.

Philippe Jost, Regional Manager Asia/Pacific, emphasized the importance of this expansion: “The significant expansion of our supply chain in Indonesia enables us to better meet the strong demand in one of the most dynamic markets in Southeast Asia. It also positions Sika for further growth in this important market, driven by rapid urbanization and strong population growth.”

As part of its growth strategy, Sika has also tripled its network of distributors in Indonesia. By 2024, the company’s products will be available at 30,000 points of sale across the country, up from over 10,000 in 2022. This successful distribution model is being replicated in other major markets, including China and India.

The expansion aligns with broader trends in Indonesia’s construction industry, which is projected to grow to over CHF 240 billion by 2024, with a compound annual growth rate (CAGR) of 6% until 2028. The Indonesian government has also recently approved CHF 25 billion in infrastructure investments and is committed to increasing the share of renewables in the energy mix from 12% in 2022 to 40% by 2030, signaling ongoing opportunities in the market.

SIKA 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 automotive industry. Sika has subsidiaries in 103 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 vehicle industries toward greater environmental compatibility. With more than 34,000 employees, the company generated sales of CHF 11.2 billion in 2023.

Media Contact:

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

SOURCE: Sika AG