3M closes 16 factories, plans changes at 10 more in network revamp

The industrial conglomerate is aiming for $1 billion in annual productivity gains by the end of 2027 through an operational overhaul, Chairman and CEO William Brown said.

3M has closed 16 manufacturing sites and distribution centers since the start of the fiscal year and will make changes at 10 more facilities over the next 12 months, CEO William Brown said on an Oct. 20 earnings call.

The network consolidation comes as the industrial conglomerate conducts an operational overhaul that aims to simplify and standardize core business processes, streamline manufacturing and distribution, and reshape the company's business portfolio, per a securities filing. The initiative targets $1 billion in annual productivity gains by the end of 2027, Brown has told investors since launching the project a year ago.

Seven of this year’s factory closures, including two in the U.S., stemmed from 3M closing the sale of its Precision Grinding and Finishing business on April 1, Brown also told investors in April. He also said the company had closed another factory and planned to fully or partially close three more, reducing its total number of plants from 108 to fewer than 100.

This story was originally published by Supply Chain Dive. Read the full story at Supply Chain Dive →