Here Are 3M’s Plans to Jump Start Growth

3M (NYSE:MMM) intends to streamline its business and increase R&D investment in order to boost performance.

The maker of products ranging from Scotch Tape to Post-it notes is projecting revenue growth of 4 to 6 percent over the next five years. It has lowered it expectations from 2009 when it projected 7 to 8 percent growth.

CEO Inge Thulin said investment in Research and Development will increase to 6 percent of sales by 2017, up from 5.3 percent of sales in 2011. These goals are part of the company’s five-year plan.

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“Innovation is at the center of our plan, so it is essential that we strengthen our commitment to R&D,” said Thulin.

The Minnesota-based company might not be keeping all of its departments — those that generate $2.5 billion in annual revenue are under review to either fix, scale down, sell, or close.

Acquisitions are also part of the plan. 3M is projecting increased sales growth in China and Latin America – about 40 to 45 percent by 2017 from the burgeoning economies. This is up from 35 percent this year.

Earnings per share are expected to grow from 9 percent to 11 percent annually from 2013 to 2017.

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