What Is 3M’s Plan With Regards To China?

3M has been witnessing slowing growth in China, as a result of a weakening economy. However, it did contribute to 10% of the company’s revenue of 2015, and the company has been able to expand margins in the region for the past three years, with a 12.7% margin growth in the last year alone. 3M is targeting the country as a key growth market, with sales growth of 4-7% expected over the next five years, higher than the global growth of 2-5%. A new plant was set up in China last year to take advantage of the opportunities available there. One of the most promising areas is healthcare, as healthcare spending has been growing rapidly and 3M is not well penetrated in the Tier B hospitals there. Furthermore, in the safety and security segment, 3M provides equipment for worker safety and traffic management, as well as for public protection from contaminated water and air, for which there is a large market. China is also the largest car producer in the world. Besides this, there is also a great demand for aircraft and high-speed rail in the country. 3M has a great portfolio in the transportation industry, worker safety solutions, cabin comfort like acoustic insulation or lighting inside the aircraft, along with lightweight material to reduce the weight of the vehicle. Hence, 3M has tremendous scope to take advantage of the many opportunities created by China.

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