3M China began operating its Asia Pacific Production Facility for Medical Devices and its Jinshan Special Material Production Facility yesterday to localize its supply chain and tap the growing Chinese market, the firm said.

3M China said it invested 700 million yuan (US$102.5 million) in the two Shanghai-based plants. The firm spent 300 million yuan in the first phase of the medical device plant which, when completed, will cover 50,000 square meters and 400 million yuan in the first phase of the 175,000 square meter Jinshan plant.

"We'll continue to invest in the two factories, and future plans will be made according to market situation and future demand," said Kenneth Yu, managing director of 3M China, yesterday.

The medical device plant is 3M's largest in Asia Pacific, and 40 percent of its products will be sold in China and the other 60 percent will be exported to other Asian countries.

"There will be higher requirements on medical devices and related technologies as China's medical reform continues," said Wallach Wu, general manager of 3M China Health Care Business.

3M generated US$4.3 billion from sales in the health care sector globally in 2008, the highest among its seven business sectors.

The Jinshan factory will produce semi-products for other 3M production facilities in China, which were previously bought from other manufacturers. These products will be made into coating materials to be used in medical and consumer goods as well as automobiles.

3M plans to move output of some of its advanced detecting technologies to China from the United States.

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