In a major move toward building a circular economy in construction, Sika and Sulzer have signed a Memorandum of Understanding to create a groundbreaking joint venture that will revolutionize plastics recycling in the construction industry.
The new initiative will combine Sika’s expertise in high-performance building materials and polymer applications with Sulzer’s advanced chemical recycling technologies to develop a scalable, efficient solution to one of construction’s biggest environmental challenges.
The 50:50 joint venture, to be based near Zurich, Switzerland, is expected to begin operations in the second half of 2025, with initial pilot programs in Germany, Austria, and Switzerland.
Addressing the Plastic Waste Crisis in Construction
The European construction sector generates over two million tons of plastic waste annually, much of which is currently discarded due to the inefficiencies of mechanical recycling. Traditional methods produce low-quality recycled plastic, often unsuitable for reuse in new building materials.
This joint venture targets that challenge head-on. By deploying a combined mechanical and chemical recycling system, the partnership aims to recover high-grade materials suitable for reuse in construction applications—paving the way for zero-waste construction practices and contributing to the development of a genuine circular economy in building.
Advancing ESG Goals and Reducing Carbon Footprints
“This joint venture marks a key milestone in our journey toward sustainable construction and environmental responsibility,” said Ivo Schädler, Head of Construction at Sika.
“By converting construction plastic waste into high-quality raw materials, we are actively helping reduce Scope 3 CO₂ emissions, meet evolving ESG standards, and open new paths for value creation across the construction supply chain.”
Michael Schüpp, Head of Ventures at Sulzer, added: “Sulzer’s technologies are already vital in helping industries lower emissions and recycle materials.
Together with Sika, we’re now enabling the construction sector to adopt more cost-effective, low-emission, and resource-efficient practices.”
Closing the Loop in Construction Plastics
The venture also plans to collaborate with local logistics and recycling companies, ensuring a fully integrated value chain from collection to reintegration of recycled plastics into new construction products.
This approach aims to deliver a cost-effective, end-to-end solution for construction firms seeking to reduce waste and improve sustainability across their operations.
By combining world-class technology and industry expertise, Sika and Sulzer are setting a new benchmark for plastics recycling in construction, and offering a replicable model for other regions aiming to reduce environmental impact and embrace circular building practices.
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