Sika and Sulzer have signed a memorandum of understanding to establish a joint venture focused on advancing plastics recycling within the construction industry. The new company will be independently established and headquartered in the Zurich area, with each partner holding a 50 percent stake. By leveraging Sika’s expertise in polymer applications and high-performance construction materials, along with Sulzer’s leadership in process technology and chemical recycling, the joint venture aims to provide innovative and scalable recycling solutions. Operational activities are expected to begin in the second half of 2025, starting with pilot projects in Germany, Austria and Switzerland.

The initiative is a direct response to the growing challenge of plastic waste in the construction sector. In Europe alone, the construction industry produces nearly two million tons of plastic waste annually. Despite increasing awareness and regulation around sustainability, the recycling of construction plastics remains technically demanding, fragmented, and inefficient. Most construction plastics are disposed of at the end of their life cycle because current mechanical recycling technologies result in low-quality output that is unsuitable for reuse in building materials. The planned joint venture seeks to address this gap by creating a system capable of processing and repurposing construction plastics using a combination of mechanical and chemical recycling techniques.

By transforming complex plastic waste into high-quality raw materials, the project will support the construction industry in reducing Scope 3 carbon dioxide emissions and meeting rising environmental, social and governance standards. This initiative also opens up new value creation opportunities for companies looking to improve their sustainability credentials. According to Ivo Schädler, Head of Construction at Sika, the partnership represents a meaningful step toward a more circular economy in construction. He noted that turning waste into usable resources not only contributes to climate goals but also supports the long-term viability of the industry and its stakeholders.

Michael Schüpp, Head of Ventures at Sulzer, emphasized the importance of the collaboration in addressing global sustainability challenges. He stated that Sulzer’s technologies already play a key role in enabling industries to lower emissions and recycle more efficiently. By joining forces with Sika, the company is extending its impact into the construction space, which is increasingly under pressure to adopt greener practices and minimize waste.

The joint venture will also work with local partners, including logistics and recycling service providers, to ensure the efficient collection, transport and processing of construction plastics. The recycled materials will then be reintegrated into manufacturing, effectively closing the loop and enabling a cost-effective, sustainable solution for one of the industry’s most pressing environmental issues.