3M will continue to expand its business in China next year by investing over
1 billion yuan (US$127 million) to enhance its manufacturing capabilities, the
company announced yesterday.
According to Kenneth Yu, managing director
of 3M's China Region, the company plans to build two manufacturing bases in
Shanghai with combined investment exceeding 640 million yuan (US$81 million).
3M plans to build one base in Pujiang High-tech Park of Shanghai's
Minhang District to target health care products.
"In the beginning, this
base will make health care products for the domestic market and these products
will later be sold outside of China," Yu said.
Gaoqiao Chemical Park in
Shanghai's Pudong New Area will be the nest for the second new base, which will
primarily produce tape and adhesive-oriented chemical products for the needs of
domestic factories.
As tape and adhesives are one of the core products
of 3M, "we can cut the cost by producing them in China instead of importing them
from outside since they are heavy and not convenient for long-distance
transportation," Yu said.
Meanwhile, 3M plans to add two projects
respectively to its existing manufacturing bases, one in Suzhou, a neighbour of
Shanghai, and the other in Shanghai's Xinqiao. Estimated investment in the
expansion is 470 million yuan (US$60 million).
Optical products in LCD
screens have become a lucrative business in recent years for 3M. That's why it
started to expand its project in Suzhou, which has many LCD screen manufacturing
companies.
At present, 3M has started to pick up its development pace
since its entry into China in 1984. It has quickened its steps of adding more
investment, building more plants and employing more local staff.
With
total investment in China reaching about US$500 million, 3M China has
established 11 subsidiaries, 20 offices, 6 manufacturing bases, 1 innovation
centre and 3 technical centres.
Just one month ago, the company kicked
off an expansion project at its Caohejing manufacturing base in Shanghai's Xuhui
District, the investment of which, including construction and facilities,
exceeded US$40 million.
3M China has more than 4,800 employees, the
majority of which are local staff. "Eighty per cent of the management team and
99 per cent of the staff are Chinese," Yu said.
The number of staff will
be increased from the current 4,800 to about 10,000 by 2010, and less than 10 of
those will be foreigners, Yu said.
The combined sales of 3M on the
Chinese mainland, in Hong Kong and Taiwan this year are expected to exceed US$2
billion, according to the company. "The next three years will see the fastest
expansion of 3M in China," said Liu Yaoqi, head of 3M China's R&D
centre.
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