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MMM 3M Company

97.15
0.34 (0.35%)
04 May 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
3M Company NYSE:MMM NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  0.34 0.35% 97.15 98.19 96.84 97.58 4,818,716 01:00:00

Trump Administration Orders 167 Million Face Masks From 3M for Coronavirus Pandemic -- 2nd Update

07/04/2020 12:14am

Dow Jones News


3M (NYSE:MMM)
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By Alex Leary and Austen Hufford 

President Trump said the government would buy nearly 167 million masks from 3M Co. over the next three months, resolving a spat with the industrial conglomerate over efforts to ramp up supply of gear for frontline workers confronting the coronavirus pandemic.

Mr. Trump criticized 3M's mask-making efforts last week and invoked the Defense Production Act against the company. That Korean War-era law gives the president power to compel manufacturers to make operational changes in the national interest. Health workers across the country are running short on masks as well as the gowns, ventilators and face shields they need to treat the sickest patients with Covid-19, the disease caused by the virus.

An official said Monday that the Trump administration didn't plan to take any further action against 3M under the DPA in addition to the mask purchases. The administration will purchase 55.5 million masks from 3M in each of the next three months, the official said.

"The 3M saga ends very happily," Mr. Trump said at a briefing on Monday evening. "We're very proud to be dealing now with 3M and its CEO, Mike Roman. I just spoke with him and I thanked him for getting it done."

Mr. Roman had pushed back against Mr. Trump's criticism last week, telling The Wall Street Journal that his company was doing everything possible to increase mask production.

3M, which confirmed the purchase, has doubled its production of masks in recent months to about 100 million N95 masks globally each month, including 35 million in the U.S. 3M said last week that it would raise production in the U.S. to a monthly rate of 40 million within weeks, and that it would also import 10 million masks from its operations in China with the administration's help.

Other manufacturers including Honeywell International Inc. are also raising mask output in the U.S. The Department of Health and Human Services estimated in March that the U.S. would need about 300 million N95 masks a month to confront a pandemic.

The Trump administration's order with 3M, for 166.5 million face masks total, includes respirators that are approved under the typical N95 standard -- so called because those masks block 95% of very small particles -- as well as orders for products certified under a similar standard used in China known as KN95.

These respirators are in high demand because they are designed to keep health-care workers safe. Surgical masks and even simpler cotton masks are intended to prevent the spread of disease from wearers.

Mr. Trump, who was initially reluctant to invoke the DPA, has also invoked it to compel companies to work faster to make ventilators. General Motors Co. and General Electric Co. are among companies working to produce more ventilators in the U.S.

Write to Alex Leary at alex.leary@wsj.com and Austen Hufford at austen.hufford@wsj.com

 

(END) Dow Jones Newswires

April 06, 2020 18:59 ET (22:59 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.

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