23 March 2018
DETAILS
Sika is pushing ahead with the significant expansion of its plant
in Bac Ninh in northern Vietnam, underscoring its commitment
to dynamic growth in the country’s booming construction market.
A state-of-the-art facility for mortar production
has come on stream alongside
the existing production of concrete admixtures.
This most recent investment enables Sika
to extend its portfolio of locally manufactured products
in the north of the country, and thus
reinforce the company’s cost structure and competitiveness.
More stringent building regulations in Vietnam
require the use of ready-mixed mortar,
which is one of Sika’s strongest product lines.
As a result ready-mixed mortar is gaining market share,
unlike mortar products that are mixed on the building site.
In addition to more stringent regulatory requirements
in the construction sector, Vietnam is experiencing
a massive construction boom,
where rising education and prosperity levels
fuel demand for high-quality, high-performance building materials.
CONTINUOUS STRONG MOMENTUM IN CONSTRUCTION INDUSTRY
Vietnam’s construction sector is expected to grow by 9.6% this year,
with annual growth then averaging 7.2% through to 2026.
This is being driven by several factors:
upcoming infrastructure projects, rapid industrialization,
continued urbanization, and a growing tourism sector.
A partial relaxation of restrictions on property ownership
is also making the construction sector attractive to foreign investor.
"The new mortar facility in Bac Ninh is a targeted investment
in the expansion of our production capacity
around the Hanoi metropolitan region.
It enables us to deliver significantly faster growth
in northern Vietnam and optimize our cost structure,
with the elimination of long transport distances.
Our customers benefit from an enhanced,
high-performance portfolio of products
that is aligned with building standards,
as well as from shorter lead times.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
