√ Nearly $2 million in incentives awarded to manufacturers to provide faster & more secure access to life-saving medical products, create new jobs
√ New York state has announced more than $20 million to 36 companies to manufacture vital supplies; companies to collectively create/retain 3,500 jobs
Gov. Andrew Cuomo on Wednesday announced four additional New York companies and one company that has previously received state support will be awarded nearly $2 million in state support to produce supplies to help combat the COVID-19 pandemic. These grant funds will help alleviate product shortages due to supply chain issues that could lead to unfair pricing practices.
The companies will also increase the state's manufacturing capacity while creating new jobs and market opportunities. To date, New York has announced more than $20 million in grants to 36 qualifying New York-based companies to retool their business lines and pivot to manufacturing vital supplies for ongoing response and recovery efforts.
These 36 companies will collectively create and retain over 3,500 jobs.
"The COVID-19 pandemic exposed serious issues in our nation's medical supply chain, and we were forced to compete overseas and pay exorbitant prices for these life-saving products," Cuomo said. "We learned the hard lesson that these resources need to be manufactured here in the U.S., and we are taking steps to build the infrastructure we need here in New York to keep us prepared for future crises while helping local companies create new jobs."
Lt. Gov. Kathy Hochul said, "Our country was ill-prepared for a global pandemic when it arrived early in 2020, and New York state was left to scour the earth in search of personal protective equipment. We are proud to support domestic manufacturing of critical medical equipment that will not only save lives and reduce dependency on overseas products, but also retain local jobs and support New York state companies."
•1 Atelier - $500,000 - New York City - 1 Atelier is a maker of handbags in New York City. When the pandemic hit the City in March, the company's CEO decided that she needed to help the medical community get the PPE they needed while at the same time keeping her staff of 60 employed through what they knew would be a hard time. With the assistance of this grant, 1 Atelier shifted to making N95 respirators for the medical community and expects to have its National Institute for Occupational Safety and Health approval early next year. 1 Atelier has committed to producing an initial run of 250,000 N95 respirators.
Awarded companies include:
•Aero Healthcare US LLC ($800,000, Mid-Hudson) – Aero Healthcare is a global health care supply manufacturer and distributor. The company will expand its existing facility to bottle hand sanitizer and manufacture the plastic bottles and pumps for its containers. The ramp up will include the purchase of machinery and equipment and raw materials. At full production, Aero Healthcare will produce 200,000 units of hand sanitizer per week. This is the first phase of a larger plan to bring the batching and mixing of hand sanitizer to the company's Rockland County facility. The project will include an investment of $2.1 million and 10 new jobs to reach full capacity.
•ARX Sciences ($200,000, Western New York) – ARX Sciences was founded in 2019 and is headquartered in Western New York. The company designs, develops and manufactures reagents for use in in-vitro diagnostics. ARX also offers a number of biochemicals for use by scientists and clinical researchers. The company successfully applied for a COVID-19 grant in order to begin manufacturing viral transport mediums, or VTMs, and the company will produce 250,000 units, creating 20 new jobs in its manufacturing facility.
•Borden Manufacturing ($46,000, New York City) – Borden Manufacturing fabricates hospital equipment such as disposable cubicle curtains and medical waste bags. The company is receiving a grant to retool its facility to produce level one disposable hospital gowns and disposable masks. The ramp-up will include the purchase of machinery and equipment, raw materials and the hiring of four new staff. The approximately $166,000 project will allow Borden to produce 365 masks and 3,276 gowns per week at full ramp-up, which is a total of 46,800 units during the first 90-day period. The company plans to continue manufacturing the gowns and masks indefinitely.
•Genesis Disposables LLC ($400,000, Mohawk Valley – second grant) – Genesis Disposables has been manufacturing disposable garments and accessories for a diverse customer base for over 30 years at its facility located in Frankfort. A press release noted, “The company carries a wide range of raw materials that can be quickly converted into finished goods, enabling it to deliver exceptional turnaround time.” Genesis Disposables has reached capacity at its current manufacturing facility and is looking to move into a larger facility and purchase machines and manufacturing equipment to increase production. The project will entail a $6.8 million investment to expand production of level one and level two isolation gowns at 100,000 a month initially, then ramping up to 250,000 a month by the end of 2021, creating 55 jobs in the first year.
Last March, Cuomo asked companies with New York-based operations to retool production lines in order to manufacture approved COVID-19 critical supplies, such as ventilators, test kits and PPE. Companies manufactured N95 respirators, surgical masks, gowns and face shields, among other products. On July 30, Cuomo announced 12 New York companies had received support from the state to produce supplies to help combat the COVID-19 pandemic (in addition to eight companies announced by Empire State Development on May 15). On Oct. 23, Cuomo announced an additional eight New York companies had received support to start producing COVID-19 related equipment and supplies. The program was designed to ensure New York's health facilities will have access to PPE if and when they need it.
To further promote domestic manufacturing of critical medical supplies and devices and to reduce dependency on overseas products, Cuomo has also proposed the Medical Supplies Act to prioritize buying American-made PPE and medical supplies as part of his 2021 “Reimagine | Rebuild | Renew” agenda. This new policy is designed to help create and retain local jobs while ensuring the health and dependability of this sector for years to come.
Empire State Development Acting Commissioner and President and CEO-designate Eric Gertler said, "New York state is home to many of the world's most innovative companies. ESD's support for these businesses not only answers Gov. Cuomo's call for New York industries to assist with efforts to fight the coronavirus, but also reflects the investment that is being made to strengthen the state's manufacturing sector to adapt quickly to new market opportunities and continue its record of smart growth as we build back better."