3M Russia

Aktivs

The staff in 26 cities of Russia has more than 750 employees (data from the beginning of 2018). The central office and the Technological Center work in Moscow, the branch - in Yekaterinburg.

Production in Russia is localized at two plants:

• in Alabuga and
• in Volokolamsk near Moscow, where in 2018 the production of the most popular products on the Russian market - anti-corrosion materials for the protection of pipelines, respirators, consumer goods was opened.

In 2021, it was reported that investments in Russia have already amounted to 3.2 billion rubles.

History

2023

Sale of Russian business for $18 million

At the end of July 2023, 3M Corporation announced the sale of Russian business. As reported in the holding's statements for the second quarter of 2023, the transaction cost was $18 million. At the same time, it is not specified who bought them.

Kommersant recalls that 3M there were two plants in Russia - in Volokolamsk near Moscow (it was managed by 3M Russia JSC) and in the Alabuga SEZ in Tatarstan (3M Volga LLC). In March 2023, it became known that 3M had agreed to sell Russian factories with the VMP research and production holding under the leadership of Mikhail Vakhrushev. Infoline-Analytics CEO Mikhail Burmistrov then estimated the cost of enterprises at $20-25 million, excluding access to technology and intellectual property.

3M sold the entire Russian business for $18 million

In June 2023, 3M Volga LLC was transferred to Kazakhstan's Ledvakh Trade, headed by Mr. Vakhrushev. In the same month, he became the general director of 3M Russia JSC. NPC "VMP" produces anticorrosive materials for metal and concrete, fire retardants, polymer floor coatings and metal powders.

At the end of July 2023, the 3M press service announced that the company also carries out other operations in which some types of raw materials are sent by suppliers from Russia, and due to geopolitics, the company has interruptions in supplies.

Such geopolitical tensions can lead, in particular, to cyber attacks, further interruptions in the supply chain, which will affect customers involved in the processing and sale of products, increasing the cost of energy carriers, reducing consumer demand and changes, the concern said in a statement.

Earlier it was reported that 3M reflected in the report for the fourth quarter of 2022 $109 million in pre-tax expenses related to plans to leave Russia.^[1]

Kazakhstan company bought 3M plant in Tatarstan

On June 7, 2023, it became known that the American company 3M sold the 3M Volga plant, located in the Alabuga special economic zone in Tatarstan. Read more here.

VMP bought ZM assets in Russia

At the end of March 2023, it became known about the sale of 3M's Russian business to a research and production holding. and VMP Financial its participants did not disclose other parameters of the deal. VMP President Mikhail Vakhrushev confirmed the information. RBC

According to Mikhail Burmistrov, CEO of Infoline-Analytics, the total value of the company's Russian assets is $50 million. At the same time, according to RBC, 3M plans to sell only production facilities, there is no talk of transferring production technologies. In this case, the value of assets can be about $20-25 million, added Burmistrov. In the ZM report for 2022, which states the company's plans to leave Russia, the value of the company's main assets and liabilities intended for sale is estimated at $50 million. According to the interlocutor of RBC, familiar with the negotiations, 3M will not sell production technologies, as part of the transaction we are talking exclusively about production facilities.

3M will not sell production technologies, as part of the deal we are talking exclusively about production facilities

3M Corporation has two plants in Russia (by the end of March 2023), one of which is located in the Alabuga special economic zone in Tatarstan, and the second in Volokolamsk, they produce products for the oil and gas industry and protective equipment, respectively. Both of these plants are planned to be sold to the research and production holding VMP, which is one of the leading manufacturers of paints and protective coatings in the Russian Federation.

VMP Research and Production Holding was founded by Irina Frischberg, who managed it until 2002. The holding produces anticorrosive materials for metal and concrete, fire retardants, polymer floor coatings and metal powders. The head office of the holding is located in Yekaterinburg, production facilities are located in the city of Aramil, Sverdlovsk Region, St. Petersburg, as well as in Astana. In addition to Russia, the company's products are sold by dealers in Kazakhstan, Belarus, Turkey and Latvia, indicated on its website.^[2]

2021

Production of respirators

In 2021, products for industry and security are the largest business 3M in Russia, up to 50% of the turnover of the Russian division. In Volokolamsk, the company produces a line of disposable respirators of all degrees of protection, valve, valveless structures.

The demand for valve versions of respirators in Russia has grown geometrically, in addition to the expansion of valveless lines, the company is increasing the production of valve models by optimizing production processes and additional supplies of raw materials.

In 2021, the plant installed new equipment for the production of respirators, a new line was designed. This is the first project when the production line was fully designed and assembled in Russia by a Russian company, using the experience of operators, technologists and engineers 3M Russia.

The company continues to train the market in the correct use of respirators, the fit of which depends on the effectiveness of protection and comfort of the user. Russia 3M supports the "Safe Environment" direction of the GreenTech Startup Booster Skolkovo program.

In 2021, the 3M restored supplies to Russia of Aura respirators, a sales leader around the world, which were suspended in 2020 due to EU restrictions.

Supply of filters for the production of therapeutic products

3M is an important part of the therapeutic drug manufacturing chain around the world. Russia The company supplies specialized types of filters (Zeta Plus) for biotechnological production. They are widely used in the production of therapeutic drugs, including for coronavirus and influenza. 3M experience and technologies in the field of filtration are applied in the joint laboratory of 3M and Generium companies for the development and testing of immunotherapy technologies for students and specialists at the Moscow State University of Fine Chemical Technologies named after MV Lomonosov (MITHT). Equipped with 3M filtration equipment, the laboratory allows students to access the possibility of practically mastering the modeling of production processes and testing modern technologies for the purification of therapeutic proteins.

Waste Zero Transition Plan

A project has been launched in Russia to switch to zero waste at 3M production complexes. Before joining 3M Russia to the global 3M initiative, the company disposed of 222 tons of waste. By the end of 2021, the 3M will reduce the amount of waste by 91%, and by 2024 it will reach zero waste in Russia. Under development - a project to transfer production facilities in Volokolamsk to energy obtained from alternative sources, such as hydropower, wind energy, solar energy.

Cooperation with the Russian manufacturer of solar modules Solartek

The company 3M cooperates with the Russian manufacturer of flexible solar modules, Solartek. The SolarTek solar array is manufactured using a 3M transparent multilayer front film. It is a modern alternative to heavy and fragile glass, traditionally used in silicon solar panels, and opens up the possibility for companies to mass-produce solar roofs. The production of flexible solar modules under the SteelSun brand will be launched at the end of 2021 at a plant in Saransk. The capacity of the first stage is 5 MW per year, and the design capacity is 10 MW per year. The production technology of the first Russian flexible solar modules is licensed by Midsummer (Sweden). The process of manufacturing flexible solar cells using Midsummer technology provides minimal carbon emissions compared to other production technologies of solar modules.

Supply of fire extinguishing and cooling systems

In connection with the strengthening of the trend towards limiting greenhouse gas emissions, today there is a high interest in technologies that replace high-vapor gases, both from business and from the state. The Novec-branded product line has a high environmental profile and completely replaces high-vapor gases in fire extinguishing, cooling, energy equipment and industrial fine cleaning processes. As of October 2021, critical infrastructure, state and commercial objects are protected by systems at GOTV Novec 1230, of the latest and famous objects - Kremlin buildings, museums, archives, libraries, Ostankino Tower, Pushkin Museum, Hermitage, the largest data center in Russia - Sberbank data center in Skolkovo, offices of leading corporations of Russian and foreign, hospitals, Arctic industrial facilities. In 2021, 3M celebrated the 15th anniversary of Novec 1230 in Russia, the first firefighting project (Central Bank) was implemented in 2006, and in 2021 it is difficult to find a city in Russia where there are no Novec systems. The reconditioning capacity of GOTV Novec 1230 was installed at the company's plant in the Alabuga SEZ.

2019

Management appointments 3M Russia due to restructuring

3M Russia On May 16, 2019, the company announced appointments to the management of divisions in the region Russia and the CIS in connection with the restructuring announced in March 2019.

The business group Security industry and (including the Department for Relations with Partners) was headed by Zhukotsky Leonid Leonid Zhukotsky, the business group Transport and -. Electronics Gleb Trofimenko

The structure of the other two business groups Healthcare and Consumer Goods has not undergone significant changes, their leaders have remained the same - Evgeny Mikheev heads the Healthcare business group, Nikolai Shishkarev - the Consumer Goods business group.

In general, as explained in the company, the updated organizational model is a reorganization of business areas from five divisions (Security and Graphics, Electronics and Power, Healthcare, Industry, Consumer Products) into four:

• Safety and industry combined businesses to serve the industrial, electrical and safety markets. The division includes departments of personal protective equipment, industrial tapes and adhesives, abrasives, electrical equipment, masking systems, auto-repair materials and roofing pellets.
• Transport and electronics have brought together businesses that serve manufacturers of vehicles and electronic equipment. This business unit includes materials and systems for screens, technologies for the electronics industry, automotive and aerospace equipment, commercial graphics, road safety and materials for the polymer and fuel and energy industries.
• Health care includes the departments of medical products, dentistry, food safety, filtration materials, information systems for health care, as well as drug application systems.
• Consumer products include departments of home goods, stationery and office supplies, home improvement solutions, retail car care business.

Despite organizational changes, the company's activities in the region continue to be carried out in accordance with obligations to customers and partners. As explained in 3M Russia, the optimization of the structure at the global level, announced in March 2019, was the first step in the Advance 3M initiative, an element of the company's business transformation aimed at strengthening its market position, meeting consumer expectations, optimizing costs, accelerating operations, improving efficiency and long-term sustainable growth of the company.

3M increases investment in localization in Russia

of the global economy is declining. In particular, there is a decline in the markets of China and European countries, which cannot but influence the situation in Russia, where, according to general forecasts, GDP growth will remain at the level of 1.4% in 2019. The decline in oil prices continues to put pressure on the ruble, coupled with the inflationary impact of the VAT increase in January. Despite these restraining factors, the 3M in Russia and the CIS ended 2018 with good results, revised its investment plans and expands the level of localization in the country, "said Mats Friberg, CEO of 3M in Russia and the CIS in early 2019

3M in Russia and the CIS ended 2018 with sales growth of 13.3%. Despite the general slowdown in the Russian industry, all business areas of the company showed growth from 4 to 20% due to the focus on certain points of economic growth, strengthening local production and modernizing business models. An important stage was the receipt of a certificate from the Ministry of Industry and Trade of the Russian Federation on the status of 3M as a Russian manufacturer of PPE.

Priority markets in the CIS countries were identified - these are Kazakhstan and Belarus, where the company intends to actively develop its presence in sectors such as oil and gas, mining and food industry. Uzbekistan and the countries of Transcaucasia - Armenia and Azerbaijan are also of significant interest for the development of various areas of the company. According to 3M expectations, sales growth in these countries may overtake the indicator in Russia by at least two times.

In Russia, the company plans to develop in accordance with the general global strategy, which is based on product portfolio management, business transformation, innovation for growth, as well as strengthening the company's position in the field of sustainable development, maintaining personnel involvement. Among the tools for successful growth, 3M sees the development of local production and the modernization of the company. Import substitution remains a key trend, 3M will continue to invest in expanding its presence in Russia, in the development of local production capacities.

Production complex in Volokolamsk

In 2019, the volume of 3M investments in the development of production in Volokolamsk will amount to about $5.6 million.

Due to the increase in the production of 8000 series respirators, the line for the production of respirator bases will be modernized. Additional SCAF equipment will be installed, which will increase the production capacity for assembling cup-shaped respirators by 30%.

At the end of the year, it is expected to install a line for the production of respirators for the middle segment of the market to expand the product line.

Production complex in SEZ Alabuga""

In 2019, the planned volume of 3M investments in the development of production in the Alabuga SEZ will amount to more than $850 thousand.

It is planned to expand the range of liquid anticorrosive coatings by introducing a new product for the inner surface of the gas pipeline of large diameters, which increases the efficiency of gas transportation of pipelines.

The plans include the implementation of the first step to localize the production of polymer processing additives for the petrochemical industry.

2018: 3M invests $5.5 million in next 2 years in Russia

In 2018-2019, 3M Russia intends to invest $5.5 million in its production and R&D department in Russia. This was announced in January 2018 by the new CEO of the 3M in Russia Mats Friberg during a press conference of the company.

"In 2018, it intends to invest $1.4 million in the development of production in Tatarstan, in the Alabuga SEZ to expand the product line of liquid anticorrosive coatings for the oil and gas industry in Russia and the CIS," said Mr. Friberg. The company plans to supply 30% of its products for export, and the first batch is expected to be sent in the first quarter of 2018^[3]

In addition, the R&D department from the UK will be transferred to the Alabuga SEZ, creating an expertise center for the entire company in a special economic zone.

It is planned to invest $1.4 million in the production complex in Volokolamsk, which is engaged in the production of personal protective equipment for industry. The company plans to supply up to 25% of its products for export, including half of this volume to Western European countries.

In addition, 3M in Russia plans to expand its health and safety sector in the food industry.

Mr. Friberg also announced changes to the 3M structure. Since January 1, 2018, three new regions have been created: "3M Russia and the CIS" (includes Russia, Armenia, Belarus, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan); "3M Poland and Ukraine" (includes Poland, Ukraine and Georgia); "3M Southeast Europe" (includes Greece, Israel, Romania, Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Kosovo, Macedonia, Moldova, Montenegro, Serbia, Slovenia). And the region of Western Europe was reformed, which became "3M Northern and Baltic countries" (includes Denmark, Finland, Norway, Sweden, Estonia, Latvia, Lithuania).

2017: Appointment of Mats Friberg as CEO of 3M in Russia and the CIS

In December 2017, Mats Friberg was appointed CEO of 3M in Russia and the CIS.

2016: Localization of production of the line of light respirators 3M

Since 2008, since the launch of the first production line at the plant Volokolamsk , the total production of light respirators has increased fivefold 3M. The process of complete localization of the production of the entire line of light 3M respirators, including models of the 3rd class of protection, has been completed. In 2015, the export of products produced in began. Since Russia 2016, Volokolamsk-made respirators have been supplied to Central and Eastern Europe, the volume of exports this year will exceed 10% from the volume of all 3M products produced in Volokolamsk. Compared to 2015, the volume of exported products has tripled. It is expected that the indicators will continue to grow: 3M is actively working on obtaining the necessary documentation to expand the range of products manufactured in Russia and supplied to other countries.

"The share of sales of localized products in the company's total sales in Russia is 18%. Half are Russian developments created in a laboratory in Volokolamsk. Our long-term goal is that 50% of the products of 3M, which are sold in Russia, are produced locally. We continue to move in this direction. The plant has successfully established the production of all types of light respirators, today these solutions are being modernized and improved. Thanks to the work of laboratories, the 3M company in Russia has registered 12 patents, several more applications are under consideration, and it should be borne in mind that a significant part of inventions are protected in a commercial secret mode, "comments R&D Director of 3M Russia. Dmitruk Sergey

2015: The second plant in the SEZ "Alabuga"

• In 2015, a second plant was opened in the Alabuga SEZ (Republic of Tatarstan), which specializes in industrial anti-corrosion coatings.
• In Volokolamsk, there are three R&D laboratories specializing in: personal protective equipment, anti-corrosion coatings, materials for auto repair.
• It Russia has its own educational program - a 3M school that conducts free educational webinars for auto repair specialists, machine builders, metallurgists, builders, chemists, power engineers, industrialists and advertisers.

2013

In early 2013, 3M optimized its organizational structure in Russia. The changes followed the restructuring of business areas at the international level. Directors of new business groups have been appointed to 3M Russia.

Since the 1st quarter of this year, 5 business groups have been created in the structure of 3M Russia instead of the previously existing 6 departments.

In Russia, business groups headed:

• Vladimir Smirnov - Business Group Security and Graphics
  • The group includes the following departments: Means for occupational safety and health, Solutions for maintenance of premises and protection of buildings, Solutions for the oil and gas and mining industry, Safety systems, Road safety systems and Commercial schedule.

• Igor Simonov - Business Group Materials for Industry
  • The group includes the following departments: Abrasives, Industrial adhesive tapes and adhesives, Materials for auto repair and vehicle care, Materials for the automotive and aircraft industries, Filtering materials, Materials for the polymer industry and fuel and energy complex.

• Lazlo Swinger - Business Group Healthcare
  • The group includes the following departments: Medical products for infection prevention, Comprehensive care solutions for acute and chronic conditions, Food industry products, Dental products, Orthodontic products.

• Alexey Shulepov - Business group Consumer goods
  • The group consists of the following departments: Office Products, Home Care Products, Consumer Health Products, Home Construction and Improvement Products.

• Electronics and power Business Group is temporarily under the leadership of 3M Russia CEO Reza Watsiri
  • The group includes the following departments: Telecommunications and electrical equipment, Electronics and technologies of the electronic industry, Special protective materials, Mobile interactive solutions and Renewable energy sources.

The main changes in the structure are related to the redistribution of departments from 6 departments into 5 business groups. As previously reported, the current changes affect the industrial areas of the company, they are designed to ensure the optimal correlation of the structure of the company's businesses and technologies with the needs of the market.

"The new company structure meets the needs of a fast-growing business and team, is better balanced with the market situation. The changes mainly affected industrial areas of work, the development of which is a priority for the company, both in Russia and in the world. To do this, 3 research laboratories were created in Russia in 2012, production localization will continue in 2013, a new production complex in Alabuga will begin operating by 2014, and the share of new products in the company's total sales is planned to be increased to 40% by 2017, "comments Reza Watsiri, CEO of 3M Russia.

2011

In 2011, 3M produces goods for industrial markets, the sales of which provide more than 50% of the company's turnover. These include abrasives, personal protective equipment, industrial adhesive tapes, adhesives, filters, polymer additives, etc. The other two areas that provide the largest growth in the company's turnover are car repair materials, widely known for their high quality among premium services, and healthcare products, which account for about 20% of the company's turnover.

The company supplies telecommunication equipment for fiber-optic networks, main equipment and PON technologies, materials for the construction and repair of copper communication lines, installation tools and equipment for testing and diagnostics, a product line for base stations of cellular operators. These are: Classic solutions for the copper cable, an advanced version of the Dynatel 965 AMS measuring complex, equipped with a VDSL2 + modem, which allows you to make all measurements of the copper cable at frequencies up to 30 MHz. As well as the latest generation of modular RFO NGs, Enhanced Optical Distribution Frame (eODF) high-capacity fiber-optic cross, non-drillable NPC connectors that do not require a tool-less, as well as an FRP cable.

3M is a supplier of complex solutions for telecommunication, electrotechnical and electronic industries of Russia for copper and fiber-optic communication networks, for enterprise networks and for access networks, using PON, FTTB, SCS, ADSL technologies, etc.

The tie-in contact, patented 3M almost 40 years ago, is now mandatory for use on most networks of the Russian Federation, the UY2 connector is a standard for fast and reliable wire connection, BCCK couplings, modular MS2™ connectors are also widely used in Russia. Route search devices have Dynatel™ solved hundreds of problems in detecting communication cables. In the fiber optic fiber market, 3M offers fully mechanical couplings for cable connection and a mechanical Fibrlok™ connector, as well as components of the Volition™ SCS. One of the latest developments is the broadband ADSL splitters.

Since the early 1990s, 3M has been a supplier of equipment and materials for interregional companies of the Svyazinvest telecommunications holding, as well as companies in the alternative and corporate segments of the Russian telecommunications market.

2010

The company has been involved in a number of landmark telecommunications projects, many of which will continue into 2011. First of all, this is the construction of PON networks for North-West Telecom and Uralsvyazinform, where the company's solution 3M for connecting FTTx network subscribers was chosen as the base. In addition, 2010 was marked for us by the entry into the market of mobile operators. A number of our solutions, such as non-consumable 3M NPC connectors, Fibrlok optical splices and mechanically sealed couplings, are becoming the standard in building new generation access networks and are increasingly in demand by customers.

In 2010, 3M entered the mobile operators market. Non-consumable 3M NPC connectors, Fibrlok optical splices and mechanically sealed couplings have become the standard in building next-generation access networks. The OSCW clutch allows you to quickly and reliably protect the detachable connections of the antenna with the cable, and its shape is specially adapted to the requirements of Russian cellular operators for sealing any type of antennas.

1991: Opening of a representative office in Russia

In 1991, a representative office of 3M was opened in Russia, and already in 1992 sales of telecommunications equipment began: Scotchlok connectors for splicing copper communication cables. In 1997, a technology was developed for installing a copper cable using the products of 3M - the compression coupling VSSK/MVSSK, which is still successfully used on communication networks in the Russian Federation.

Since the late 1990s, the company has been developing a portfolio of solutions for fiber-optic communication lines, among which the Fibrlok brand is best known - connectors for splicing optical fiber using the welding method. Since 2008, since the beginning of the development of Passive Optical Network (PON) technology in the Russian Federation, 3M has been an active player in this market segment. Currently, 3M is one of the leading suppliers of solutions for optical networks of fixed and mobile telecom operators in Russia.

Notes