3M closes 16 factories, plans changes at 10 more in network revamp

3M has closed 16 manufacturing sites and distribution centers since the start of the fiscal year and plans changes at 10 additional facilities over the next 12 months, CEO William Brown said on an earnings call.

The company is conducting an operational overhaul to simplify and standardize core business processes, streamline manufacturing and distribution, and reshape its business portfolio, according to Supply Chain Dive.

This initiative aims to generate $1 billion in annual productivity gains by the end of 2027, as stated by 3M's Chairman and CEO William Brown.

Seven of the closures this year, including two in the U.S., resulted from the sale of 3M's Precision Grinding and Finishing business earlier this year.

3M is also reducing its distribution network and aims to lower days of inventory on hand from the high 90s to the mid-70s, with each day cut representing about $35 million in savings.

Alongside network changes, the company plans to invest more than $250 million over the next three years in automation across factories and distribution centers, including warehouse and manufacturing automation.