3M Response to Defense Production Act Order

Authored by news.3m.com and submitted by Warrwik

ST. PAUL, Minn.--(BUSINESS WIRE)--3M issued the following statement in response to the announcements issued by the White House last evening:

Over the last several weeks and months, 3M and its employees have gone above and beyond to manufacture as many N95 respirators as possible for the U.S. market. Yesterday, the Administration formally invoked the Defense Production Act (DPA) to require 3M to prioritize orders from the Federal Emergency Management Agency (FEMA) for our N95 respirators.

We have been working closely with the Administration to do exactly that, and we appreciate the authorities in the DPA that provide a framework for us to expand even further the work we are doing in response to the global pandemic crisis. We look forward to working with FEMA to implement yesterday’s order.

In the course of our collaboration with the Administration this past weekend, the Administration requested that 3M increase the amount of respirators we currently import from our overseas operations into the U.S. We appreciate the assistance of the Administration to do exactly that. For example, earlier this week, we secured approval from China to export to the U.S. 10 million N95 respirators manufactured by 3M in China.

The Administration also requested that 3M cease exporting respirators that we currently manufacture in the United States to the Canadian and Latin American markets. There are, however, significant humanitarian implications of ceasing respirator supplies to healthcare workers in Canada and Latin America, where we are a critical supplier of respirators. In addition, ceasing all export of respirators produced in the United States would likely cause other countries to retaliate and do the same, as some have already done. If that were to occur, the net number of respirators being made available to the United States would actually decrease. That is the opposite of what we and the Administration, on behalf of the American people, both seek.

We also continue to act on reports of price gouging and unauthorized reselling related to 3M respirators. This activity is unethical and illegal. We are working with the U.S. Attorney General and attorneys general of every state, making it clear that 3M has not and will not raise prices for respirators and offering our assistance in the fight.

We look forward to working closely with the Administration to implement yesterday’s DPA order. We will continue to maximize the amount of respirators we can produce on behalf of U.S. healthcare workers, as we have every single day since this crisis began.

At 3M, we apply science in collaborative ways to improve lives daily. With $32 billion in sales, our 96,000 employees connect with customers all around the world. Learn more about 3M’s creative solutions to the world’s problems at www.3M.com or on Twitter @3M or @3MNews.

paulfromatlanta on April 3rd, 2020 at 17:28 UTC »

Defense Production Act (DPA) to require 3M to prioritize orders from the Federal Emergency Management Agency (FEMA) for our N95 respirators

I'm not sure they have a legal choice. And the U.S. government's options can be severe - up to sending in troops and arresting executives. Hopefully 3M will convince the government that they can produce enough for America and still have masks to export.

DrCalFun on April 3rd, 2020 at 15:43 UTC »

Wouldn’t this cause other countries to just flout international IPs and manufacture their own N95 then? In the long run, you may lose the humanitarian ground for IP.

eclipse-mints on April 3rd, 2020 at 15:37 UTC »

The Administration also requested that 3M cease exporting respirators that we currently manufacture in the United States to the Canadian and Latin American markets. There are, however, significant humanitarian implications of ceasing respirator supplies to healthcare workers in Canada and Latin America, where we are a critical supplier of respirators.

In addition, ceasing all export of respirators produced in the United States would likely cause other countries to retaliate and do the same, as some have already done. If that were to occur, the net number of respirators being made available to the United States would actually decrease. That is the opposite of what we and the Administration, on behalf of the American people, both seek.

2 reasons why 3M said no