SIKA

With its solutions in the specialty chemicals area, Sika makes an important global contribution to megatrends such as urbanization, e-mobility, and sustainable development. At the same time, the company helps buildings, infrastructure, and vehicles to be more sustainable, i.e. making them longer-lasting and resource-efficient, as well as environmentally-friendly and harmless to human health.

The pace of change all around the world has never been faster than it is today. The reason for this is above all digitalization and its multifaceted downstream trends, which are fundamentally altering all walks of life. This is also true of the construction sector and the automotive industry. These are two key markets of Sika, a globally active, SMI-listed specialty chemicals company. So if Sika wants to be successful in the future too, it will have to be highly innovative. In 2018 alone, the research teams of Sika Technology AG developed more than 50 significant product innovations and registered 85 patents. The basis for these innovations includes new high-performance molecules with special functionalities, intelligent processing methods for polymer substances and surfaces, and customized laboratory equipment that facilitates the rapid transfer of research to industrial production.

“MORE VALUE – LESS IMPACT”
Urs Burckhardt, Head of Research at Sika Technology AG, believes the company’s power of innovation is also partly due to its sustainability strategy: “Nowadays, sustainability is a basic prerequisite if Sika is to consolidate its leading market position with innovative products and services.” After all, given the backdrop of resource scarcity, growing populations, and rising temperatures, many innovations are sustainability-driven in the modern era. Under the slogan “more value – less impact”, Sika pursues the goal of extending the lifetimes of buildings and industrial applications, reducing the need for maintenance, and improving the efficiency of energy and materials. Another goal is to make the use of Sika products easier and safer. “Initiatives of this kind help customers in the construction sector and in industry to achieve their own sustainability goals when it comes to building efficiency or the use of materials in vehicle construction, for example,” explains Urs Burckhardt.
A look at the company’s origins shows that sustainability is not just something Sika pays lip service to. The original founder, Kaspar Winkler, who was born in the Vorarlberg region, was working as a site foreman in Zurich around 1890 and trading in granite. At that time Zurich was emerging as Switzerland’s largest metropolis, and had the corresponding need for building services. Kaspar Winkler also experimented with new building materials and chemical additives. In 1910, at the age of 38, he duly founded “Kaspar Winkler & Cie.” in Zurich-Wiedikon. His first – and most important – product was the waterproofing sealant “Sika”, which would later become the company name.

PROTECTION AGAINST WATER
This was a time before central heating and proper insulation, which is why many houses in the rapidly-growing urban centers were characterized by uncomfortable and unhealthy conditions with wet cellars, damp walls, and moldy wallpaper. But major industrial structures such as railway tunnels and later concrete dams and bunkers faced the problem of water ingress. Kaspar Winkler was determined to improve the quality of both construction and materials with his products for sealing, strengthening, and protecting. Not for nothing did he choose a mason working on a fortress-like building surrounded by lapping waves as his first company logo. This focus on quality has been a permanent theme throughout Sika’s history, and is also reflected in the company’s current sustainability strategy.
More than a century after being founded, Sika continues to be infused with this spirit of innovation. A majority of the world’s population now lives in an urban area. This unique phenomenon of migration from country to city is now most evident in the emerging markets. Some 500 of the world’s cities now boast more than 1 million inhabitants, with the wider conurbation of Tokyo accounting for 34 million on its own. Urbanization is one of the greatest global challenges of the 21st century. On the one hand it enables billions of people to achieve a standard of living that was never enjoyed by their ancestors. On the other, rapidly-growing cities gobble up huge quantities of resources, and a great deal of work is required to ensure the orderly and peaceful coexistence of so many people in such a small area.
Philippe Jost, Head of Construction and Member of Group Management at Sika, points out that the requirements of denser construction and urban infrastructure are becoming ever more rigorous. The example of Hudson Yards, a project only recently completed in New York, makes this abundantly clear. The cost of this project amounted to USD 25 billion, making it the largest private real estate project in US history. This development complex, which encompasses no less than 15 high-rise buildings on a platform adjoining the Hudson River, required developers to take into account numerous different aspects such as safety, comfort, esthetics, and sustainability. “Skyscrapers are subject to the strictest stability and solidity standards. This explains why concrete is the key building material,” explains Dominik Slappnig, Head of Corporate Communications and Investor Relations at Sika. The proximity of the Hudson Yards complex to water explains the need for reliable sealing and glass facades capable of resisting both strong winds and temperature fluctuations.
In order to meet challenging building specifications of this kind, Sika offers appropriate technologies ranging from additives for high-performance concrete and self-leveling mortar to sealing systems for glass facade elements and flat roofs, as well as resilient and largely emission-free flooring. Just as important as the development, manufacture, and application of building chemical products is Sika’s comprehensive sales and advisory approach. Ever since its earliest days, Sika has advertised its brand products intensively and dispatched specialists to building sites to ensure that its products are correctly applied and subsequently recommended to other potential customers. When it comes to major projects, the process of partnership with Sika experts begins at the planning phase, when specifications for the various products are drawn up. The partnership then continues not just throughout construction but also beyond. “This close involvement is crucial in complex projects, as new questions are continuously arising for which appropriate solutions have to be found rapidly,” explains Philippe Jost.

Dominik Slappnig, Head of Corporate Communications

ACTIVE IN 100 COUNTRIES – BUT SWISS AT HEART
Today Sika is led by Chairman Dr. Paul Hälg and CEO Paul Schuler. The company currently employs more than 24,000 people in some 100 countries worldwide. Nonetheless, at its heart Sika has remained a distinctly Swiss company with a philosophy more in keeping with a medium-sized business. A key reason for this is the decentralized structure that has evolved over time. “Decentralized companies have the major advantage of being closer to their customers,” explains Dominic Slappnig. “They have a more nuanced understanding of local markets, can react quicker to customer needs, and can respond promptly to the wishes of stakeholders.” He goes on to point out that Sika has its own production sites in most countries, and that these are tailored very specifically to local parameters. “At the same time, decentralized organizations require a pronounced culture of self-reliance and mutual trust,” explains Raffaella Marzi, Head of HR and Compliance at Sika. Employees in the different countries have to know how to implement the global strategy in a way that makes sense locally. On the other hand, a shared understanding of the company’s values is essential to prevent the national companies from becoming too heterogeneous. This in turn makes it very important to promote mandatory awareness of expected behavioral norms, as well as customer orientation, a willingness to innovate, sustainability and integrity, fairness, and results-oriented management, explains Raffaella Marzi. This is why the “Sika Spirit” plays such a strong role. The ethical standards that Sika expects of its employees are high. In 2018 alone, a good third of the Sika workforce underwent training in company values and its code of conduct, while management in all countries reaffirmed its commitment to compliance and acknowledged its duty to fulfill a role model function. Employees can also report any violations of Sika values anonymously via the “Sika TrustLine”.

PROMOTING POTENTIAL
As a rule, senior managers are recruited locally in the emerging markets rather than transferred from Europe, as Sika prefers to rely on their knowledge of these markets and their understanding of the local culture. Where the promotion of employees is concerned, Sika takes care to ensure that career paths are open and multi-faceted. Wherever possible, management positions should be filled internally, something the company has achieved almost exclusively in recent years. As Raffaella Marzi goes on to explain, a circumspect and sustainable staffing policy has an important role to play in supporting the global growth strategy and the cultural integration of newly acquired companies. Sika has acquired a market reputation as a company with integrity: “People want to be part of the Sika culture.”
Urs Burckhardt believes the decentralized organization is of great benefit to his particular area. More than 900 employees work in 20 global technology centers, and Sika Technology's global network also encompasses 44 local and 20 regional R&D facilities. For example, as part of the “Mesh Mould” project, Sika is working with the Federal Institute of Technology in Zurich (ETH Zurich) to develop reinforced concrete structures of any shape without any separate formwork. Sika has a uniform company-wide process for the evaluation of sustainability. All new products are reviewed from a commercial, environmental, and social perspective to establish whether they deliver any improvement, explains Philippe Jost. This is the basis on which a new coating and waterproofing system emerged for the balcony segment as part of the “Sikafloor®” series, for example: The corresponding product is significantly more weather-resistant, and therefore more enduring as well as more environmentally-friendly.
In addition to sustainability in construction, Sika also sets great store by the use of progressive materials in the automotive and consumer goods industries. The automotive industry in particular is currently going through a process of structural upheaval, with production and distribution functions being changed by new propulsion systems, digital technologies, and materials. Thanks to its expertise in automotive adhesives and sealants stretching back decades, Sika is well-prepared for this transformation. Electro-mobility and lightweight chassis construction are increasing the importance of superior auxiliary materials capable of making vehicles more efficient, safer, and quieter. Sika’s heat-conductive materials are contributing to the dramatic increase in battery charging times, something that will be crucial for the market penetration of electric vehicles, explains Dominik Slappnig.

BUILDING TRUST
“Building Trust” is Sika’s brand promise. “Products can be differentiated through branding, and through its brand a product is associated with a specific set of values,” asserts Dominik Slappnig. Company founder Kaspar Winkler realized this and consistently acted accordingly. It says something about Sika’s originality that the brand design evolved into the company name, and is now embodied in a memorable logo that has become synonymous worldwide with innovative, high-quality products and services. In the 2018 business year, Sika managed to reduce its own energy consumption by 5.8 percent – while at the same time increasing net profit by 5.9 percent and sales by as much as 13.6 percent. These figures constitute further proof that a large company like Sika can not only combine values, innovation, and sustainability, but also make this combination the cornerstone of its success.