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April 5, 2020, 10:14 a.m. EDT

3M hits back at Trump, says ceasing exports of N95 masks will have ‘opposite’ effect, humanitarian consequences

Company says to stop exporting face masks would lead to retaliation and a decrease in supply; one expert says lack of raw materials is the real issue

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By Tomi Kilgore, MarketWatch

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3M Co. responded Friday to criticism from President Donald Trump, saying the request to cease exports of much-needed N95 masks to fight the COVID-19 pandemic will not only have the “opposite” effect of what is needed, but also significant “humanitarian” consequences.

The company, which makes safety, industrial and consumer products, including Post-it Notes and Scotch tape, as well as face masks, said that it has been working closely with the Trump administration to supply N95 respirators to fight the spread of the novel coronavirus, and appreciates the authorities in the Defense Production Act that were invoked on Thursday, but indicated that some of the administration’s requests could be counterproductive.

For example, under the DPA, the administration requested 3M to cease exports of respirators made in the U.S. to Canada and Latin America.

The company /zigman2/quotes/205029460/composite MMM -1.64%  said that would have “significant humanitarian implications” as 3M is a critical supplier to those countries. It would also likely provoke other countries to 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,” 3M said in a statement . “That is the opposite of what we and the Administration, on behalf of the American people, both seek.”

The company pointed out that after a request from the administration to increase respirators imported from its overseas operations, it was able to secure approval from the Chinese government, with help from the administration, to export 10 million N95 respirators that it made in China to the U.S.

The company’s response comes after Trump tweeted late Thursday that he “hit 3M hard,” and that the company will have a “big price to pay,” as many in his administration were surprised with what 3M was doing with their masks.

The administration formally invoked the DPA to require 3M to prioritize orders from the Federal Emergency Management Agency (FEMA) for N95 masks.

Earlier this week, 3M said it has boosted production of N95 masks to 100 million per month , including 35 million masks per month in the U.S. By June, the company said it expected to make 50 million masks in the U.S.

In an interview on CNBC on Friday, Chief Executive Mike Roman said it was “absurd” for President Trump to suggest 3M wasn’t doing everything it could to supply face masks to U.S. health-care workers. “Nothing could be further from the truth,” Roman said on CNBC’s “ Squawk on the Street ” program.

Using the DPA to ask 3M to make more masks “may not be as effective as we wish,” as the shortage of masks is more a result of a lack of raw materials than of production capacity, according to Howard Yu, Lego professor of management and innovation at the Institute for Management Development in Switzerland. The raw material to make the N95 masks isn’t usually in high demand during peacetime, Yu said.

“It requires once-obscure melt-blown fabric, an extremely fine mesh of synthetic polymer fibers,” Yu said.

Yu said the administration also has to be careful in it’s attempt to fight the pandemic in isolation by calling for a cease in exports of personal protective equipment (PPE).

“No country can be completely self-sufficient,” Yu said. “The virus knows no border.”

Canada’s Prime Minister Justin Trudeau reinforced that point in an interview on CTV News . He said 3M has indicated that it understands how important it is to continue with delivering on orders to places like Canada, “because there is much trade that goes back and forth in essential services and it can end up hurting Americans as much as it hurts anybody else.”

$ 169.55
-2.83 -1.64%
Volume: 4.08M
Sept. 18, 2020 4:04p
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