3M realigns business structure
3M has announced a realignment of its major business groups to better serve global markets and customers, effective immediately.
The new structure will be comprised of five business groups: Consumer (2011 sales of $4.2 billion), Industrial ($9.6 billion), Health Care ($5.0 billion) and two newly formed business groups: Safety & Graphics ($5.5 billion), and Electronics & Energy ($5.7 billion). Previously, the company operated six segments.
“The change is a natural outcome of our strategy to increase relevance to our customers and to broaden our presence in the markets we serve,” said Inge Thulin, 3M chairman, president and CEO. “By building scale more broadly, we create critical mass in each business group to take full advantage of innovation and commercialization opportunities.”
The company also announced new leadership roles for many of its senior leaders.
Segment reporting for the new organization is effective Jan. 1, 2013.
Electronics & Energy will now be led by executive VP Mike Kelly, former head of 3M’s Display and Graphics business. The new business group includes the following operating divisions:
• 3M Touch Systems
• Communication Markets
• Electrical Markets
• Electronic Solutions
• Electronics Markets Materials
• Infrastructure Protection
• Mobile Interactive Solutions
• Optical Systems
• Renewable Energy
Safety & Graphics will now be led by executive VP Julie Bushman, former head of 3M’s Safety, Security and Protection Services business. The new business group includes the following operating divisions:
• Architectural Markets
• Building & Commercial Services
• Commercial Graphics
• Industrial Mineral Products
• Mining, Oil & Gas Solutions
• Occupational Health & Environmental Safety
• Security Systems
• Traffic Safety Systems
Industrial, led by executive VP Brad Sauer, remains unchanged, with the exception of Renewable Energy moving to Electronics & Energy. Sauer formerly led 3M’s Health Care business.
Health Care, led by executive VP Joaquin Delgado, is unchanged. Delgado formerly led 3M’s Electro and Communications business.
Consumer is also unchanged and will continue to be led by executive VP Mike Vale.
Chris Holmes has been named senior VP corporate supply chain operations, succeeding John Woodworth, who announced his intention to retire. Holmes was formerly executive VP of Industrial and Transportation business.