Sika Expands to Increase Production Capacity for Polyurethane Adhesive

LYNDHURST, N.J., May 18, 2006 -- Sika Corporation announced today that it would invest $17.8 million over the next two years to increase capacity for polyurethane sealant and adhesives production at their headquarters facility in New Jersey. According to William E. Loven, President & Chief Executive Officer, the investments will be made "to transform the factory into a focused polyurethane factory with up to 100% more capacity. In addition, we will begin upgrading our equipment in order to increase manufacturing efficiencies and reduce costs. These moves will be undertaken to more efficiently serve our current Automotive Aftermarket Glass Replacement customers, as well as to position Sika to supply the North American Automotive OEM Direct Glazing market with our newest technology and manufacturing efficiencies."

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Loven says the existing Sika powders and mortars manufacturing operations in Lyndhurst will be moved to other Sika locations or to certain alliance partners of Sika. High performance mortars and grouts still represent a large portion of Sika Construction division sales. In fact, many key construction products distributors acknowledge that Sika makes the widest range and some of the best high performance grouts and mortars in the industry. Such products are used in the repair and refurbishment of concrete structures like interstate highways, building facades, and bridge structures.

The Industry Division of Sika Corporation is headquartered in Madison Heights, MI. The company is a leading supplier of adhesives and sealants serving automotive aftermarket, automotive OES, industrial, marine, and transportation markets. Product lines include polyurethane adhesives and sealants, hot melt adhesives, epoxies, acrylics, silicones and butyl sealants. Specific applications for Sika adhesives and sealants are found in the appliance, automotive glass replacement, automotive OES, fenestration, HVAC, marine, metal building, and transportation industries. Visit the Sika Corporation Industry Division website at www.sikaindustry.com.

Sika Corporation is a supplier of specialty chemical products and industrial materials serving construction and industrial markets including transportation, marine, and automotive. Sika Corporation is a subsidiary of Sika AG, Baar, Switzerland. Sika has annual sales of approximately US$2.1 billion (CHF 2.9 billion), over 10,000 employees and operations in more than 70 countries. Visit the Sika Corporation website at www.sikacorp.com.

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