Swiss construction chemicals giant Sika’s Asia-Pacific business continues to face headwinds from China’s struggling residential construction market, but strong growth in India and Southeast Asia is helping offset the downturn, with market share gains driving expansion outside the Chinese construction business.

The company’s sales in Asia/Pacific fell 2.3% in local currencies in the first nine months of 2026, improving from a 3.9% decline in 2025. Third-quarter sales, however, dropped 2.7%, reflecting continued weakness in China’s construction sector, where residential construction recorded a double-digit decline.

Excluding its Chinese construction business, Sika delivered strong organic growth of 7.7% across the region, supported by market share gains.

India remained a key growth engine, with its infrastructure business continuing to perform at a high level. Southeast Asia also posted encouraging momentum, driven by new commercial construction projects.

Sika’s operational overhaul under its Fast Forward programme remains on track, with the company targeting CHF 80 million in benefits by 2026.

Productivity measures, including regional plant rationalisation and operational optimisation, generated a monthly savings run rate of CHF 8 million by the end of the reporting period.

Beyond cost-cutting, the programme is also designed to accelerate growth through targeted investments in digital solutions, innovation, customer value and operational excellence.

Sika expects these growth initiatives to generate an additional CHF 150 million to CHF 200 million in benefits from 2028, with an attractive return on investment.

Sika is stepping up its acquisition strategy to strengthen its market position, broaden its product portfolio and unlock new growth opportunities.

During the third quarter, the company completed its acquisition of Akkim, a Turkey-based global manufacturer of adhesives and sealants. The deal strengthens Sika’s position in the sector by expanding its product offering, distribution network, geographic reach and production capacity.

Akkim is expected to provide a significant growth platform, with net sales of around CHF 220 million in 2025. Sika aims to double the business’s revenue within five years.

In October, Sika acquired the Azpects Group, a leading UK producer of polymeric sands for landscaping. The acquisition is expected to create cross-selling opportunities through complementary products and distribution channels while strengthening Sika’s presence in a fast-growing market segment.

The company has also agreed to acquire the adhesives business of Japan-based chemical company Resonac Corporation, with the transaction expected to close in mid-2027.

Despite continued pressure in China, Sika has maintained its full-year guidance, reaffirming the outlook presented alongside its half-year results in July.

The company expects local-currency sales growth of 3% to 6% and an EBITDA margin of 19.0% to 19.5%.

Sika also reiterated the consensus EBITDA forecast of CHF 2,160 million as of July 28, 2026.

The outlook signals continued confidence in the company’s growth strategy, supported by strength in selected markets, operational savings and acquisitions, even as weakness in China’s residential construction sector remains a drag on regional performance.