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Medical PPE Manufacturer is setting up production in Louisiana
Posted on 5/3/21 at 4:45 pm
Posted on 5/3/21 at 4:45 pm
The one in St. Martin Parish will employ almost 1,000 people.
quote:
SafeSource Direct And Ochsner Health Announce PPE Production Facilities In Lafayette, St. Martin Parishes
LINK
Today, Gov. John Bel Edwards joined Ochsner Health President and CEO Warner Thomas, SafeSource Direct CEO Justin Hollingsworth and other officials to announce the development of two manufacturing facilities for personal protective equipment, or PPE. The Acadiana Region projects will create a combined 1,221 new direct jobs, and Louisiana Economic Development estimates the project will result in a combined 992 new indirect jobs, for a total of more than 2,200 new jobs.
Ochsner Health partnered with Trax Development on a joint venture to create SafeSource Direct LLC. SafeSource is investing $150 million to develop the facilities, with $73 million to retrofit an 80,000-square-foot manufacturing facility in Lafayette Parish that will also house its headquarters, and $77 million for the development of a new 400,000-square-foot manufacturing facility in St. Martin Parish.
“Today’s announcement is not only a celebration of the new jobs SafeSource Direct will create and the economic activity it will generate, but also an opportunity to thank Ochsner and Trax for an investment that truly meets our novel moment,” said Gov. Edwards. “A year ago, states across the union were grappling with a shortage of personal protective equipment as the coronavirus spread. Even now, the need for PPE is great and that demand will continue for the foreseeable future. I am proud to say that, with this new project, Louisiana will play a key role in preventing the U.S. from facing such a shortage again.”
SafeSource Direct will manufacture, warehouse and directly distribute PPE for health care and other industries in Louisiana and nationwide.
“COVID-19 brought to light our nation’s dependence on foreign countries, primarily China, for PPE,” Hollingsworth said. “By manufacturing right here in Lafayette and St. Martin parishes, and selling directly, SafeSource Direct will be positioned to eliminate the lag times, uncertainty and frustration that plague international manufacturing and shipping. Our hope is that these facilities will lay the foundation for more independently sustainable health systems in the U.S.”
The Lafayette Parish facility will create 245 new direct jobs with an average annual salary of $45,300, plus benefits, and will result in 199 new indirect jobs. It will include the company’s headquarters and a manufacturing plant for surgical tie-masks, bouffant hair covers, shoe covers, isolation gowns, procedure masks and N95 masks. Manufacturing operations will be located in an existing building near the intersection of the Evangeline Thruway and St. Nazaire Road in Broussard.
“SafeSource Direct choosing Broussard and Lafayette Parish for its headquarters and manufacturing operations demonstrates how attractive our parish is to new businesses in search of an ideal location to successfully operate,” said Mayor-President Josh Guillory of Lafayette Parish. “A company of this size will not only boost our economy, but it will also create hundreds of competitive job opportunities for our citizens.”
This post was edited on 5/3/21 at 4:47 pm
Posted on 5/3/21 at 4:51 pm to goofball
Good. More jobs the better. And it’s always a plus to keep manufacturing home.
Posted on 5/3/21 at 4:51 pm to goofball
Great move by Oschner to control their supply chain
Posted on 5/3/21 at 4:52 pm to goofball
That is good news for Lafayette, my hometown. Diversify away from oil and gas
Posted on 5/3/21 at 4:59 pm to goofball
They should branch out to condoms. Local demand must be sky high, mais yeah?
Posted on 5/3/21 at 5:12 pm to goofball
Great news that some jobs are coming to Louisiana. Those will not be the highest paying jobs around, but maybe they’ll have some health care and other benefits for folks.
Posted on 5/3/21 at 5:15 pm to Spankum
Key is that it help to diversify from oil and gas which has taken a beating. Any manufacturing plus headquarters is great news
Posted on 5/3/21 at 5:36 pm to goofball
quote:
N95 masks
Boycott this company.
Posted on 5/3/21 at 5:37 pm to goofball
For being a non profit Ochsner sure likes to make a lot of money
Posted on 5/3/21 at 5:38 pm to goofball
You idiots have no excuse. #maskuporshutdown
Posted on 5/3/21 at 6:39 pm to goofball
If any of you O&G guys remember, the headquarters will be in the old Weatherford building off of St. Nazaire.
Posted on 5/3/21 at 6:52 pm to Limitlesstigers
JBE getting Louisianians to work!!
Posted on 5/4/21 at 1:35 pm to goofball
I know a couple of people who have been hired on by them. What I’ve heard is that they’re extremely unorganized and unprepared. They’re using chlorination vs polymer coating for their nitrile glove manufacturing process, which has major safety and environmental concerns. They’re planning to pump hydrochloric acid across the plant in cheap arse Chinese PVC pipe. They also have no idea how the process truly works and are waiting for the Chinese “experts” to teach them during the machine install, but aren’t even sure if they’re coming with the machines because of the current political climate between the US and China.
Lafayette really need this, so hopefully they figure this out.
Lafayette really need this, so hopefully they figure this out.
Posted on 5/4/21 at 1:41 pm to goofball
I think it's a great thing to get us away from depending on China for PPE products, but
Is not exactly accurate. A year ago sure, my company was bringing in masks, gowns and gloves and couldn't keep them in stock. Now we have hundreds of thousands of them that we can't get rid of for a fraction of what we paid. The market is flooded for many products. Now if they can get the Nitrile Gloves going that might work because those are still in high demand and the price is insane. I just don't know how they will be able to compete with the overseas prices.
quote:
Even now, the need for PPE is great and that demand will continue for the foreseeable future.
Is not exactly accurate. A year ago sure, my company was bringing in masks, gowns and gloves and couldn't keep them in stock. Now we have hundreds of thousands of them that we can't get rid of for a fraction of what we paid. The market is flooded for many products. Now if they can get the Nitrile Gloves going that might work because those are still in high demand and the price is insane. I just don't know how they will be able to compete with the overseas prices.
This post was edited on 5/4/21 at 1:43 pm
Posted on 5/4/21 at 2:02 pm to noonan
They’re telling Ochsner they’ll be able to compete with the prices, but that’s only because the data they’ve shown their board only accounts for the direct costs, and not the overhead, depreciation, packaging materials, warehousing, distribution, etc., so they’re not giving adequate costs big time from what I’ve been told. Only cost they told Ochsner was the direct labor and Nitrile raw material costs
Posted on 5/4/21 at 2:07 pm to goofball
Will St Martin protest this like st James is doing for their new plant?
Posted on 5/4/21 at 2:13 pm to LATiger90
For the gloves they might have a shot. The prices right now are so high because of demand. Safety companies used to sell them for like $5 for a box of 100 gloves. I've had clients tell me that they are spending $30 a box these days. The problem is overseas they won't honor contracts and will sell to the highest bidder. Companies that had hundreds of millions ordered from factories are losing their orders because someone is coming in with the cash to out bid them. So they should be able to compete there.
Posted on 5/4/21 at 2:21 pm to goofball
I've been in PPE bizz for 25 years. Part owner of 2 domestic cut and sew plants. While this looks good on paper its not sustainable. There is no market demand for those items at this time and probably forseeable future. WE made bank in a big way last spring by having the only manufacturing capabilities damn near in the world. But that's long gone we cant give the stuff away now. And we pay our ladies $8.50 an hour.
Posted on 5/4/21 at 2:25 pm to Swagga
They'll relocate in 2 years after they get screwed by some over taxation and go next door to MS.
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