Sika and Sulzer Establish Joint Venture for Plastic Recycling for the Construction Industry

Sika and Sulzer have signed a memorandum of understanding to establish a joint venture to jointly promote plastic recycling in the construction industry. The joint venture combines the strengths of both companies, namely Sika's deep expertise in polymer applications and high-performance building materials, and Sulzer's leading process knowledge in chemical recycling.

The joint venture, headquartered in the Zurich area, will be established as an independent company with each party holding a 50% stake. Operational activities will start in the second half of 2025 with pilot projects in Germany, Austria and Switzerland.

The European construction industry alone generates around two million tons of plastic waste each year. Currently, the recycling of these complex materials is highly fragmented, technically demanding and inefficient. As a result, most construction plastics are discarded at the end of their life cycle because existing mechanical recycling methods produce low-quality materials that are not suitable for reuse.

Through this joint venture, Sika and Sulzer are developing a system for collecting, processing and reusing construction plastics using mechanical and chemical processes.

Ivo Schädler, Head of Sika's Construction Business, said: "This joint venture is an important milestone in our journey towards a sustainable and circular economy in the construction industry. By converting waste into high-quality raw materials, the project helps reduce scope 3 CO2 emissions. At the same time, it helps companies meet increasingly stringent environmental, social and governance (ESG) standards and opens up new channels for value creation. Together, we will make a decisive contribution to the sustainable transformation of the construction industry and thus to the future development of the industry and our customers."

Michael Schüepp, Head of Sulzer Venture Capital, said: "Sulzer's technologies are at the heart of critical infrastructure and processes. Our solutions enable industries around the world to reduce emissions, reuse resources and recycle materials. Global developments show that our products, services and technologies are more relevant than ever. The strong combination of Sulzer and Sika technologies is paving the way for an efficient circular economy and a more sustainable future in the construction industry. We are supporting an important industry on its way to a more cost-effective, efficient and lower-emission future."