WASHINGTON—More than $200 million in federal money is going toward increased domestic nitrile glove production at private firms.
A U.S. Department of Defense contract for $63.6 million with U.S. Medical Glove Co. L.L.C. will allow the company to increase production by 2.31 billion gloves annually at its Fort Knox, Ky., location by May 2023. The contract was made in coordination with the U.S. Department of Health and Human Services.
"The award will facilitate the production of 24 new production lines to support domestic nitrile exam glove manufacturing," DOD said in a statement.
The contract for Kentucky is part of U.S. Medical Glove's plans to create a network of six regional hubs around the country. The company said it expects to employ as many as 3,000 workers.
Another $123.1 million contract with Blue Star NBR L.L.C. will help that company boost production of nitrile butadiene rubber at a new Virginia location. Blue Star expects output to increase by 90,000 metric tons per year by August 2022.
Renco Corp., meanwhile, is receiving a $35 million contract modification to increase nitrile glove production in both Colebrook, N.H., and Houston. The increased capacity includes 10 high-speed dip lines that will boost production by 166.7 million gloves per month by 2022, the DOD said. That equates to 2 billion more gloves per year.
Earlier this year, the federal government announced a $22 million contract to expand the company's existing Colebrook location.