By Chen Weihua (China Daily)
Updated: 2007-10-27 11:30

Global diversified technology firm 3M said it plans to double or even triple its manufacturing capacity in China in the next five years.

3M will expand existing factories and build larger facilities in the nation, its chairman, president and CEO George Buckley said.

He said 3M will invest "hundreds of millions of dollars in China in the next five years", but would not reveal specific figures.

The company has seen annual growth of 30 to 35 percent on the mainland in the last few years - five times its total growth. Buckley and Kenneth Yu, managing director of 3M China, expect the momentum to continue.

"China is a big part of our growth strategy. It is becoming a real manufacturing powerhouse for the world. Companies like us have to have a strong presence," he said.

3M's sales in China are expected to reach $2 billion this year, trailing only the United States and Japan in market size. It expects global sales of $25 billion this year.

"We have an overall strategy for any region to have 80 percent of regional supply manufactured locally. Right now (in China) we are only a fraction of that," said Buckley.

But recruitment is a challenge for the company in China.

"It's always human resources that seem to be an impediment," he said.

"It simply means that with rapid expansion in China, we cannot hire fast enough," said Yu.

Buckley said recent product recalls of toys manufactured in China have not had a negative impact on 3M.

"The manufacturing quality for 3M in China has increased dramatically. China's manufacturing is as good as anywhere else in the world. In fact, it's better - even in many hi-tech products," he said.

Buckley said he believed the product quality issue is temporary and won't hurt Chinese manufacturing.