Star Tribune Thu, 20 Mar 2008 04:27:57 GMT
3M to move optical systems unit headquarters to Asia
The company said moving the unit to Asia will bring the business closer to its customers who make LCD TVs. 3M Co. announced Wednesday that it will move the headquarters of its LCD-filmmaking optical systems business to Asia immediately to foster the company's "overall strategy to accelerate growth by moving closer to customers." The move marks 3M's first division headquarters move outside the United States, but it solidifies an idea that CFO Patrick Campbell spoke about in October: 3M needs to move into lower-tax areas and closer to its customers and suppliers in an effort to save as much as $1 billion in freight, time, worker and logistical costs. In a prepared statement, 3M officials said that "in this fast-paced industry, headquartering the business in Asia will further improve customer intimacy and response rates." ... In December, 3M announced that it would cut 141 jobs from its display and graphics unit in Maplewood and in Cincinnati in an effort to reduce expenses, because it was forced to cut prices on LCD films that are used to brighten cell phones, laptops and TVs . Beefed-up competitive pressures in Asia prompted the layoffs and price cuts, officials said. 3M also said that, for the first time, it would enter the low end of the LCD film business. 3M has traditionally catered to the higher end of the business.
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