02/16/2024
In Japan, “One Sika” means coming together. Sika and MBCC are collaborating to ensure sustainability, resilience, and renewal in a mature marketplace.
With an extensive background in mechanical engineering and sales, Marco Ammann has been instrumental in Sika’s business development and expansion in Japan. In his current role as General Manager of Sika Japan, his mission includes among others, integrating businesses and innovating go-to-market strategies. All this while leading the Target Market Sealing & Bonding in the Asia/Pacific region.
How would you describe the challenges of the Japanese market and Sika’s opportunities within it?
Japan is a sophisticated market that requires state-of-the-art construction solutions. With our single-digit market share, we have many growth opportunities, especially if we capitalize on key market trends and leverage the capabilities of our recent acquisitions.
For instance, the ongoing refurbishment of aging structures remains a critical task in the country, along with the steady increase of high-rises in Japanese cities each year. It is a well-known fact that Japan has some of the most stringent construction requirements in the world. Buildings must be designed to be able to withstand earthquakes of up to 8 on the Richter scale, which creates opportunities for high-tech building materials in densely populated areas. While Sika invented polymer-based admixtures in Japan, MBCC was clearly the market leader in the country. As a united force, we have now expanded beyond Tokyo and Osaka, exceeding Sika’s previous market penetration.
What new opportunities does Sika have in light of its recent acquisitions?
Rooted in a history that stretches back to our first product imported from Switzerland a century ago and the establishment of Sika Japan Ltd in 1955, our recent acquisitions of Dyflex, Hamatite, and MBCC have significantly diversified our offerings and customer engagement.
Historically, while Sika was focused on refurbishing existing structures, MBCC specialized in bridges and tunnels. This complementarity creates new growth opportunities, such as the Tokyo-Osaka Shinkansen bullet train project, which is set to cut travel time in half. Furthermore, the 2021 acquisition of Hamatite, a leader in sealants for both construction and automotive industries, has fortified our ties with top car manufacturers.
These strategic moves have not only widened our manufacturing base and improved customer proximity, but also facilitated investments in specialized technology to improve production efficiency and cost effectiveness.
India and Japan are two key markets in Sika’s Strategy 2028. Despite being at different stages of development, each country offers significant opportunities for dynamic and profitable growth. In addition, the acquisition of MBCC has enabled Sika to increase customer proximity, expand its portfolio with complementary products, and improve market access.
A fertile market for high-performance solutions
Japan presents a unique landscape as a mature market characterized by the most stringent building standards worldwide. With its highly developed environment, coupled with seismic risks, Japan requires high-performing construction materials. In addition, the ongoing process of urban densification necessitates continued investment in infrastructure and property renewal. As a result, Japan is experiencing major opportunities in civil engineering and infrastructure development, including new tunnels, bridges, roads, and wind farms, all of which demand best-in-class solutions.
In recent years, Sika has expanded its presence in Japan through strategic acquisitions, including Dyflex, Hamatite, and in particular MBCC. The integration of these entities under the “One Sika” initiative is progressing steadily, fostering a unified corporate culture, and maximizing business opportunities. With the acquisition of MBCC, Sika has also significantly expanded its manufacturing network. In addition, Sika has an R & D center in Japan specializing in ultra-high strength concrete. This strategic position improves logistical efficiency and allows for more customized admixture formulations.
"With the Strategy 2028, we are capitalizing on India’s dynamic growth and Japan’s advanced market, offering innovative solutions for the evolving needs of the construction industry." Philippe Jost, Regional Manager Asia/Pacific