3M (NYSE:MMM) has entered into an agreement to sell its rights to the Neoplast™ and Neobun™ brands and related assets in Thailand and certain other Southeast Asia countries, including the manufacturing assets of its Ladlumkaew, Thailand, facility to Selic Corp Public Company Limited (Selic), a company focusing on bonding innovation serving various industries.
Neoplast and Neobun products, sold primarily in Thailand and Southeast Asia, are part of the Skin Health & Wellness business in 3M’s Consumer Health & Safety Division. The portfolios include sports and medical tapes, bandages and medicated products for the consumer and health care industry.
As part of ongoing strategic portfolio management, 3M has decided to exit these brands and prioritize other areas within its Consumer Health & Safety Division (CHSD).
“3M continues to relentlessly prioritize investments that leverage 3M’s technologies in advanced wound care solutions under the Nexcare™ brand in skin health and wellness for the consumer,” said Megan Selby, President, 3M CHSD. “We will continue to invest in health and safety for our Asia customers and those around the world.”
3M previously announced that it would discontinue all manufacturing in the Ladlumkaew plant and close the facility by the end of August 2022. This will impact approximately 250 3M Thailand employees who are eligible for severance and outplacement assistance.
Selic has indicated that it intends to establish operations at the facility, including employment of interested site employees, to scale up production of Neoplast and Neobun brands and further product development for its medical device business.
The sale is expected to be completed in the fourth quarter of 2022.
The sale will not have a material impact on 3M’s financial results.