By: ICN Bureau
Last updated : March 23, 2018 11:46 pm
The new facility enables Sika to deliver faster growth, optimise cost and eliminate long distance transport in northern Vietnam
Switzerland based Specialty Chemical company Sika has launched a state-of-the-art facility for mortar production that has come on stream alongside the existing production of concrete admixtures in Bac Ninh in Vietnam. The new facility enables Sika to extend its portfolio of locally manufactured products in the north of the country and reinforce it’s cost structure and competitiveness.
According to Mike Campion, Regional Manager, Asia-Pacific, "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.
Vietnam is experiencing a massive construction boom, where rising education and prosperity levels fuel demand for high-quality, high-performance building materials. Strong momentum in Vietnam’s construction industry shows that the 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 investors.