American Nitrile Launches U.S.-Based Nitrile Glove Manufacturing Business in Columbus, Ohio | Financial Buzz

American Nitrile Launches U.S.-Based Nitrile Glove Manufacturing Business in Columbus, Ohio

To help meet the surging demand for medical and non-medical latex-free nitrile gloves, American Nitrile, a newly launched Columbus, Ohio-based company, is building the most advanced U.S. manufacturing facility dedicated to producing nitrile gloves for healthcare, government and industrial use. Production at the 527,000-square-foot industrial facility in Grove City, OH, a southwest suburb of Columbus, is expected to begin early next year, creating 400 new jobs.

“American Nitrile is fulfilling a critical and rapidly growing need for medical and non-medical nitrile gloves made in the United States, while reducing our country’s vulnerability to the supply chain disruptions experienced during the pandemic. COVID-19 was a catalyst, but demand for nitrile gloves extends far beyond immediate needs,” said Jacob Block, founder and chief executive officer of American Nitrile.

“American Nitrile’s launch of its new manufacturing facility in the Columbus Region is an example of enterprising Ohioans seizing the unprecedented opportunity to on-shore PPE production and rebuild the U.S. supply chain here at home,” said Ohio Governor Mike DeWine. “This cutting-edge facility will create hundreds of new advanced manufacturing jobs and produce essential medical gloves stateside with homegrown Ohio talent.”

High demand for nitrile gloves

“Our research shows that demand for nitrile gloves will continue to grow post-COVID-19 not only in healthcare but also in hospitality, retail and other sectors. We have multiyear customer contracts in place and look forward to being the supplier of choice for healthcare, government and industrial,” Block said.

Demand for surgical gloves continues to grow. By material, the global medical nitrile gloves market dominates with 54.6% market share, primarily due to its increased usage in medical applications, according to a report by Research and Markets. The global nitrile gloves market was valued at $5 billion in 2020 and is expected to grow at a compounded annual growth rate (CAGR) of 14.1% through 2027 reaching $9.4 billion, according to a report by Grand View Research.

Nitrile is made from Nitrile Butadiene Rubber, a synthetic substance with an allergy safe compound and similar feel to latex. Nitrile gloves are more cost-effective, provide superior comfort, and are up to three times more puncture-resistant than latex gloves.

The COVID-19 pandemic significantly increased global glove demand, resulting in critical shortages. U.S. medical facilities and businesses across industries are dependent on foreign suppliers. Most glove manufacturing occurs in Malaysia with other suppliers based in the Asia Pacific region. Less than one percent of U.S. demand for nitrile gloves is produced domestically according to IndustryWeek.

Advanced and sustainable manufacturing

To streamline and kickstart production, American Nitrile has secured an exclusive North America partnership with Luster Industries (LTER.KL), a publicly listed, global industry leading OEM with responsibility for sourcing, manufacturing, installing, and maintaining the product lines. American Nitrile has strong partner relationships in place for sourcing raw materials and other production requirements.

American Nitrile’s manufacturing facility will leverage Industry 4.0 principles, including machine-to-machine communication, to increase automation and self-diagnosis. In addition to reducing carbon footprint by eliminating the need for transpacific vessels for shipping, the American Nitrile facility will also employ sustainable manufacturing processes that will revolutionize industry sustainability standards, including a state-of the-art water reclamation process that recycles 50% of wastewater.

Funding for Phase One operations secured

American Nitrile has raised capital from strategic investors and is proceeding with retrofitting its Grove City production facility, which was formerly a warehouse, and upgrading utilities for advanced machinery. The company expects to have all 12 lines of Phase One running in 2022, with additional phases planned over the next three years. Phase One production is expected to yield up to 40,000 gloves per hour per line, or approximately 3.6 billion gloves per year. This will be more than any other domestic nitrile glove production facility.

American Nitrile has also secured assistance from JobsOhio in the form of a $3.5 million Economic Development Grant for fixed asset investments and infrastructure and is participating in a Talent Acquisition Services program managed by JobsOhio on behalf of the company. JobsOhio is a private nonprofit corporation designed to drive job creation and new capital investment in Ohio through business attraction, retention and expansion.

“Ohio is the ideal location for our first manufacturing facility, with its talented and educated workforce. Columbus has national prominence as a distribution and logistics hub. I’m originally from Columbus and proud to be bringing jobs back to the United States and particularly to the Midwest,” Block said.

“We are truly pleased to welcome American Nitrile to our community. Grove City supports the mission to reduce reliance on imported PPE,” said Grove City Mayor Richard L. “Ike” Stage. “Our long-standing partnership with the Governor, JobsOhio, One Columbus and now American Nitrile, is one we respect and value.”

About American Nitrile

American Nitrile is a Columbus, Ohio-based privately held company focused on manufacturing medical and non-medical latex-free gloves for healthcare, government and industrial use. The company will manufacture approximately 3.6 billion nitrile gloves per year when fully functional in 2022. For more information, visit our website at www.americannitrile.com.

Contacts

For more information or to speak with a company executive, please contact:

Vince McMorrow

614.383.1622

vince.mcmorrow@fahlgren.com

Aaron Jones

415.612.0763

aaron.jones@aboutdci.com

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