3M (NYSE:MMM) announced today that it has been awarded two additional contracts by the U.S. Department of Defense to develop its domestic production of N95 respiratory protection masks. At a news conference Monday, Ontario Premier Doug Ford said the 500,000 masks had been released, but nearly three million masks were intercepted by U.S. officials in 3M`s South Dakota Mechanism. Since January, the Maplewood, Minn.-based company has doubled its global production of breathing apparatus to 1.1 billion per year, with 35 million N95 masks produced each month in the United States. According to a press release, the company has invested more than $80 million in increased production since the beginning of the COVID 19 outbreak in January. According to the plan, over the next three months, 3M will import 166.5 million breathing apparatus (masks that form a joint on the mouth and nose and offer much greater protection than surgical masks) from its factories in China. Read more: Coronavirus: 3M makes N95 masks in Brockville after agreement with the federal government, Ontario Government Canadian Prime Minister Justin Trudeau has found that Canada supplies the United States with many supplies for the medical sector, including pulp for N95 surgical masks, test kits and gloves. Canadian nurses also work in the U.S. Read more: Coronavirus: 3M says Canada will continue to receive N95 masks after the U.S. agreement "We need masks. We don`t want other people to get it," Trump said Saturday in a briefing to reporters. That is why we are introducing the Defence Production Act.
You could call it revenge, because that`s what it is: it`s revenge. If people don`t give us what we need for our people, we will be very hard. The company turned a warehouse in Montreal into a mask factory in just over two months. It has already begun producing and delivering surgical masks in Ottawa. Production of N95 is expected to begin this month and the first deliveries are expected in the fall. Quebec-based AmD Medicom Inc. recently signed a contract to manufacture 50 million surgical masks and N95 for the federal government, according to The Globe and Mail. And in Ontario, Ford said it was working with federal officials to expedite the approval process for a new "N96" mask developed by the province. The company said the U.S. government and 3M have a plan to produce 166.5 million masks over the next three months to support medical personnel in the United States. They will come mainly from the production site in China. It was only last month that the DoD signed a $76 million contract to 3M under the Defense Production Act (DPA). The most recent contracts, still under the DPA, will allow 3M to produce an additional 39 million masks per month in the United States, while another unspecified investment will add $22 million per month, bringing N95 production to more than 95 million per month.
Medicom`s combined contracts are valued at more than $113 million and include the provision of 24 million surgical masks and 20 million breathing masks on No. 95 per year.