GUANGZHOU: The US-based 3M - the Minnesota Mining and Manufacturing Company - has launched the phase I operation of its eighth Chinese manufacturing plant and a technology center in Guangzhou, capital city of South China's Guangdong Province.

The South China plant will produce medical equipment as well as other industrial supplies and accessories, said Kenneth Yu, managing director of 3M's China Region.

With an investment of up to US$37.5 million, the plant's first phase started its construction a year ago.

"We will pick up the development pace in South China by introducing more financial injection and production lines in the region in the years ahead," Yu said in an interview with China Daily.

Yu revealed that the Guangzhou plant would be built in three phases and the work on the next two phases would soon begin.

The technology center, which is based in the Guangzhou Development District, is seen as a big move to facilitate the company's R&D strength in the Chinese market, Yu said.

"The R&D center in Guangzhou will provide strong technological support both in southern and southwestern areas, covering 10 provinces and autonomous regions, offering customer-oriented solutions to meet the local demand," Yu said.

The century-old transnational company, which registered 3M China Limited in Shanghai early in 1984, has so far invested more than 300 million in the country.

Last year, the company announced that it would build two manufacturing bases in Shanghai with an investment exceeding 640 million yuan (US$81 million).

The company is also keen on business in South China, an important manufacturing hub featuring electronics and home appliance products and auto industry, Yu said.

"Besides the production line and R&D centre in Guangzhou, we have already established a logistics center in Shenzhen. We will continue to invest more in the southern area," Yu added.

(HK Edition 07/20/2007 page6)