3M Co. (MMM) has formed a renewable-energy division, as the
diversified manufacturer aims to increase its presence in the
growing solar and other alternative-energy markets and offset
pressures on its other businesses.
While traditional businesses are being hurt by the economic
downturn, the overall solar market is growing. 3M Chief Executive
George W. Buckley said in September the solar market is forecast to
grow to $50 billion in 2012, from $20 billion in 2008. Solar "is
really just a quite massive opportunity for 3M," Buckley told a
3M-hosted investor day at the time.
3M, whose products range from Scotch tape and Post-It notes to
furnace filters and power lines, already generates about $200
million annually from its solar-related products, a figure that is
growing 20% annually, Buckley said.
3M named Michael Roman, head of the company's Asian Business
Development, Optical Systems Division, to lead the new business.
"3M's new operation will serve the renewable energy market globally
and bring the best products and technologies from a single source
to customers worldwide," said Roman.
The division includes two units. Energy Generation focuses on
films, tapes, coatings, encapsulants, sealants and adhesives that
help reduce the cost of renewable energy. Energy Management will
concentrate on window film technology - including solar management,
safety and security and decorative technology platforms sold to the
automotive, commercial building and residential markets.
The announcement comes a week after 3M reported a 37% drop in
fourth-quarter net income and cut its 2009 outlook because of
economic uncertainty and challenges in its markets. 3M said last
month it would cut at least 2,300 jobs, or about 3% of its work
force.
Industrial conglomerates and manufacturers have warned about
profits recently, noting that customers have sharply reduced orders
in recent weeks. Buckley has said the company planned to reduce
capital spending by about 30% this year and is working
"aggressively" to conserve cash.
In recent premarket trading, shares were down 1.7% at $52.87.
Its shares are down about 19% in the past two months.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com
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