MANILA, Philippines—Minnesota-based 3M Company will expand its operations in the Philippines, said to be one of its fastest-growing markets in Southeast Asia and deemed a critical component in the US firm’s expansion plans in the region.
“3M is committed to invest in the Philippines because we believe that, in the future, this is a very good market for 3M as we see a lot of opportunities in the consumer, healthcare, personal safety and industrial [sectors]. There are a number of portfolios we can bring to the Philippines,” said Hak Cheol Shin, 3M executive vice president for international operations. “We are very bullish on the Philippines. We see ourselves investing in the (existing) capabilities to better serve the market and customers.”
In a briefing on Wednesday, Shin revealed that Southeast Asia could prove to be a strategic growth driver for 3M.
Sales in the region alone are expected to double in the years ahead to $2 billion, from the present $1 billion, of which roughly 10 percent came from sales in the Philippines.
“The Philippines is a critical component. We’re not cutting anything back in Indonesia, but growth rate has slowed down due to currency and geopolitical problems. Indonesia is going through a temporary setback, and so is Thailand. The Philippines, which will be among the fastest-growing markets for 3M, clearly is there to provide leadership in growth in the region,” Shin further said.
Last year, 3M posted $31 billion in revenues worldwide.
This year, revenue of local unit 3M Philippines is expected to grow between 8 and 12 percent from the P4 billion it posted in 2013, according to Ramesh Ramadurai, president and managing director of 3M Philippines.
Although growth is expected across the five business groups of 3M, the main contributors in 3M’s business in the country will be the consumer, healthcare and electronics categories.
3M has a manufacturing plant in Carmona, Cavite. The company is looking to invest further in the Cavite facility to implement two new projects that will “add value” to its products, while it “dramatically cuts the supply chain and lead time” for the manufacture and delivery of 3M products, Shin said.