Support The Moscow Times!

3M Looks to Invest $15M in New Plants

A popular model of sponges being prepared for packing at 3M’s existing factory in the city of Volokolamsk.

American conglomerate 3M plans to invest at least $15 million building two local facilities — one for the production of insulation material and the other to make glass bubbles used in the oil and gas industry — the company's Russia chief said Tuesday.

Investment in the facilities — one tentatively in the oil-producing Tyumen region and the other in the automotive industry center Samara — could rise to $30 million, said managing director Reza Vaziri.

The construction is part of 3M's expansion plan through 2015, he said. Thinsulate — a very thin synthetic fiber thermal insulation — is used in clothing, while glass bubbles are additives to cement that fortifies oil and gas wells.

Vaziri said the company is spending an additional $8 million this year mainly on increasing capacity to produce face masks for the chemical and mining industries at its existing domestic plant in Volokolamsk.

Vaziri said 3M — best known for its Post-it Notes and Scotch tape — is reviewing options for a local acquisition. Companies making home and office products are one segment being investigated, he said.

Investment up to now, Vaziri said, amounts to $28 million and includes the construction of the Volokolamsk facility, which went into operation in 2008.

Minnesota-based 3M also plans to set up a lab in Volokolamsk that would test the quality of local raw materials and study ways to modify company products to the Russian market, he said.

Quality issues that prohibit the use of domestic raw materials, such as resins, are one of the biggest challenges in localizing production, Vaziri said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more