3M committed to investing in Philippines

by Jon Carlos Rodriguez, ABS-CBNnews.com

Posted at Feb 12 2014 03:59 PM | Updated as of Feb 13 2014 05:22 PM

3M chooses PH for support hub in PH

MANILA, Philippines – US firm 3M Corporation has chosen the Philippines as one of the locations in providing global technical support for its enterprise resource planning (ERP) system.

3M Philippines president and managing director Ramesh Ramadurai said the Philippines will be among the first countries in Asia where the ERP system will be deployed.

“We are excited that the Philippines has been chosen as one of the centers and we will scale this up in the next 18 months or so,” Ramadurai said in a press briefing on Wednesday.

Ramadurai said the deployment of the ERP system is part of 3M’s 5-year rollout plan in Asia, which will begin in the second quarter of this year.

“We chose the Philippines as one of the early rollouts because we want to get the rollout done in a few countries where the overall complexity of our operation is more manageable. When you are doing it for the first time, you also want to learn from what the risks are in any implementation and I think the Philippines was very well-geared to address those priorities of the company, that’s why the Philippines was chosen along with our sister company in Indonesia,” Ramadurai said.

3M, which has offices in Taguig, Makati, Cebu and Davao and a plant in Cavite, currently has about 250 employees in the country.

Ramadurai said the firm expects its workforce to increase in the next two to years.

3M’s executive vice president for international operations Hak Cheol Shin, meanwhile, expressed confidence in the Philippines, saying the firm will continue to invest in manufacturing to better serve the local market.

He said two projects are ongoing in the country, one of which involves a change in 3M’s local packaging.

“3M is very committed to invest in the Philippines because it is a very good market. We are very bullish about the Philippines as a country and we are very bullish about 3M’s prospects in this country,” Shin said.

He added that the Philippines continues to provide leadership in terms of sales growth in Southeast Asia.

3M expects to double its sales in Southeast Asia from $1 billion in 2013 to $2 billion in 2014, said Shin.

In the Philippines, sales reached about P4 billion in 2013, with the figure seen to grow between 8%-12% in 2014.

Ramadurai said the same growth range was seen in the last 3 to 4 years, and it is expected to be sustained this year.

He said the growth was driven by 3M’s consumer-related businesses, healthcare, electronics, and industrial.

3M also announced last year that it is investing nearly $9 million to build a customer technical center at the Bonifacio Global City.

Ramadurai said the new facility, which will serve as a research and development center, will be operational sometime between March and April 2015.

“We’re really excited about this facility which will help us further drive our customer engagement, improve new product ideation, and drive innovation for solving customer requirements in the Philippines,” he said.

3M Philippines is celebrating its 50th anniversary this year.