Honeywell International (HON -0.26% ) increases U.S. N95 mask production and may hire 500 people in response to the COVID-19 coronavirus pandemic that resulted in a shortage of particulate-filtering respirators worldwide. Honeywell is one of the few world-renowned manufacturers of N95 masks, along with larger manufacturers such as 3M these are Maximizing mask production.
Last week, Vice President Mike Pence announced that the recently enacted laws would allow these companies to sell millions more masks immediately without fear of liability.
Meanwhile, Honeywell is trying to borrow nearly $ 5 billion in term loan to prepare for a challenging business environment, according to a report from Bloomberg.
Honeywell’s Plans to Maintain Financial Resilience Amid COVID-19
In February, Honeywell announced plans to expand production of the N95 masks in multiple locations around the world. Its masks and other industrial parts and security products are available through retailers in the US and Europe, as well as major e-commerce portals in China, including JD.com and Alibabas Tmall.com.
According to Pence, Honeywell could increase production by nearly 120 million masks a year. Accordingly, Honeywell is now building a new mask production line at its Smithfield, Rhode Island facility that otherwise makes products such as UVEX goggles and industrial face shields.
For this new production line, Honeywell will hire at least 500 people at its Smithfield facility.
At the same time, Honeywell would like to take out a $ 5 billion term loan to “bolster” its financial position in these uncertain times Bloomberg reported. Fears of one recession big, and many companies are spending extra resources to build resilience for the near future.
Honeywell’s high investment grade rating should come in handy now as it should allow the company to raise money without a fuss. A high rating, which reflects a manageable level of debt and the ability to repay the company, makes it easier for companies to access funds. the Grounding of the Boeing 737 MAX is already damaging Honeywell’s aviation business, so whatever funds it can raise is a step in the right direction to maintain its financial strength if things deteriorate.
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