3M Company (MMM - Free Report) has completed the expansion of its Pad Conditioner manufacturing factory in Woodlands, Singapore. The company also inaugurated a new pad conditioner manufacturing plant in YangMei, Taiwan. 3M is a globally renowned provider of chemical mechanical planarization (CMP) Pad Conditioners.
3M has become the sole pad conditioner manufacturer operating in Cottage Grove, Minn., Woodlands, Singapore and YangMei, Taiwan with this expansion. The Singapore facility has already been expanded earlier during the year and production capacity of the Taiwan factory has been increased.
The semiconductor finishing solutions and technologies from 3M are fit to meet the rising requirement of semiconductor CMP. Pad conditioners from 3M deliver stable performance and have low defect rates.
Strong cash flow position and continuously expanding sales revenue provide 3M ample resources to expand through acquisition and innovation of new products. 3M is globally recognized for its innovations, together with some of its well-known brands such as Nexcare, Post-it, Scotch, Scotch-Brite, and Scotchgard being the market leaders. We believe that continued capital expenditure with new product launches should bolster its prospects across most end markets.
However, the company’s growth objectives are largely dependent on timing and market acceptances of its new product offerings, including its ability to continually renew its pipeline of new offerings and bring those to the market at acceptable price points. Further, the results have been impacted by worldwide economic and capital market conditions.
Negative consumer sentiment is affecting the retail store traffic. On the corporate side, lower employment levels are negatively reducing office supply purchases in most companies.
3M Company together with its subsidiaries operates as a diversified technology company with manufacturing operations spread over 60 countries worldwide. It has more than 35 business units organized into six segments: Consumer and Office, Display and Graphics, Electro and Communications, Healthcare, Industrial and Transportation, Safety, Security and Protection Services Business. Major competitors of 3M are Avery Dennison Corporation (AVY - Free Report) , EI DuPont de Nemours & Co. and Johnson & Johnson (JNJ - Free Report) .
We continue to maintain a Neutral rating on 3M Company for the long term. The company has a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.