3M Co. (MMM) - Get Report shares jumped higher in pre-market trading Tuesday after the industrial group reached an agreement with Trump administration officials to import additional N95 respirators to assist with the country's coronavirus efforts.
3M said it would bring in around 166.5 million N95 masks from its facilities around the world, supplementing the 35 million it currently produces inside the United States, over the next three months. It will also continue to send the much-needed masks to markets in Canada and South America, where its remains the primary source of supply, 3M said.
“I want to thank President Trump and the Administration for their leadership and collaboration,” said CEO Mike Roman. “We share the same goals of providing much-needed respirators to Americans across our country and combating criminals who seek to take advantage of the current crisis. These imports will supplement the 35 million N95 respirators we currently produce per month in the United States.”
3M shares were marked 4.8% higher in pre-market trading to indicate an opening bell price of $147.49 each.
The agreement ends several days of tension between 3M and the President, who said last week he would invoke the 1950 Defense Production Act in order to make the Minnesota-based group produce more of the medical-grade respirators for use within the United States.
The Administration had raised earlier concerns that 3M-produced masks were being shipped overseas amid a national shortage for healthcare workers dealing with the accelerating coronavirus pandemic.
3M, however, had said last month the company had been ramping up production in N-95 respirators since January of this year, with the aim of producing around 100 million per month, 35 million of which would be used in the United States
"We've already put into motion additional investments and actions that will enable us to double our capacity once again, to 2 billion globally within the next 12 months - and some of that additional capacity will begin to come online in the next 60-90 days," CEO Roman said. "In the United States, we expect to be producing N95 respirators at a rate of 50 million per month in June, a 40% increase from current levels."