Minnesota-based 3M Corp. is spending $8.6 million (about P369 million) for its planned customer technical center at the Bonifacio Global City in Taguig City, which will house the company’s research and development unit in the country.
Of the amount, $1.6 million will be used for the construction of the 3M facility, while $7 million will cover the 10-year lease of the property that will house the facility. The said building, which is expected to be completed by early 2015, will be developed and owned by SC Summit.
“This investment will allow 3M Philippines to gain competitive advantage and serve its customers better. The new 3M Customer Technical Center (3M CTC) will be the home of technical engineers and their laboratories, where they will be working and collaborating with customers,” 3M said in a statement issued following the groundbreaking ceremony for the facility.
“The new 3M CTC will also witness the many training and innovation tours that 3M is known for,” the company said.
Ramesh Ramadurai, president and managing director of 3M Philippines, said the decision to put up the research and development facility here could be attributed to the fact that the Asean had become a “bright spot” for the 3M operations.
Market opportunities, he added, were growing across the board because of the robust economic growth in the region.
In the first half of the year, sales of 3M in the Philippines rose by about 15 percent. Sales have been growing across all segments, although the healthcare sector has been growing the fastest, Ramadurai said.
3M serves customers in six business segments: Consumer and office; display and graphics; electro and communications; healthcare; industrial and transportation, and safety, security and protection services.
3M Philippines also has manufacturing facilities in Carmona, Cavite. The 3M plant manages the facilities for Abrasives and Scotch-Brite operations, compounding, graphic production center, print-coat-and-convert (PCC) and tape converting. Globally, 3M has been investing heavily in research and development in various sites in the United States, Latin America, Europe and the Asia Pacific.
Over the next five years, 3M plans to “sharply increase” dollar investments in research and development, as the race to create new and better products becomes ever more global and competitive.
3M last year posted total revenue of $30 billion. More than $10 billion or 34 percent of the total revenue came from products not older than five years in existence.