Honeywell to Invest in Rhino Health USA to Increase Domestic Production of Nitrile Exam Gloves

Rhea-AI Summary

Honeywell (NASDAQ: HON) has finalized terms to invest in Rhino Health USA, enhancing U.S. production of nitrile exam gloves for healthcare and industrial sectors. This partnership aims to address the increasing demand for gloves, anticipated to nearly double by the end of the decade. With Honeywell's expertise in manufacturing and supply chain management, Rhino Health plans to efficiently scale operations at its new Fort Worth facility, expected to commence production by the end of 2022. Financial terms of the investment remain undisclosed.

Positive

• Honeywell's investment in Rhino Health USA boosts domestic production of nitrile exam gloves.
• Partnership expected to improve supply chain efficiency and production capacity.
• Addressing high market demand for U.S.-made PPE amid ongoing shortages.

Negative

• Financial terms of the investment were not disclosed, creating uncertainty regarding the deal's scale.

Partnership will help expand access to U.S.-made exam gloves for the healthcare industry

FORT WORTH, Texas--(BUSINESS WIRE)-- Rhino Health USA announced today that Honeywell (NASDAQ: HON) has finalized terms to invest in and take an ownership interest in Rhino Health USA to support its U.S. operations for nitrile gloves which serve healthcare, industrial and government customers. Honeywell is bringing its manufacturing, supply chain and personal protective equipment (PPE) technical knowledge to help Rhino Health USA accelerate its ramp up and overall production capacity.

To help meet market demand for nitrile exam gloves, whose market size is expected to nearly double by the end of the decade, Rhino Health announced plans in April 2021 to expand operations and open its largest manufacturing operation in a 400,000-square-foot facility in Fort Worth, Texas. The exam gloves are expected to be available from the new facility by the end of 2022.

“We are excited to partner with Honeywell and leverage their extensive manufacturing expertise to help us efficiently and quickly scale our operations,” said Mark Lee, Chairman of Rhino Health USA. “It is critical that we help diversify sourcing and expand production so that U.S. healthcare systems, the government and private sector industrial customers have better access to American-made PPE.”

During the COVID-19 pandemic, the supply of exam gloves was constrained as global demand exceeded production capacity due to high use by healthcare professionals, the implementation of strict hygiene protocols and government and health system stockpiling. This collaboration between Rhino Health USA and Honeywell will help counteract ongoing and future nitrile exam glove shortage in the healthcare industry.

“Honeywell’s investment in and partnership with Rhino Health USA will strengthen the U.S. supply chain for critical PPE that is keeping healthcare workers safe,” said Morgan Kurk, president of Honeywell's PPE business. “We look forward to working with Rhino Health USA, a leading provider of healthcare and medical solutions, to help prevent future PPE shortages.”

Rhino Health USA was the first manufacturer of nitrile exam gloves in the U.S. With manufacturing facilities situated in the Southwest region, Rhino Health USA is committed to bringing jobs and promoting economic development to help grow local communities. In May 2021, the U.S. Department of Defense, in coordination with the U.S. Department of Health and Human Services, awarded Rhino Health a contract to help it increase its domestic production capacity.

Honeywell has a long legacy of designing and manufacturing safety solutions for workers in challenging environments globally. With decades of experience in the healthcare space, Honeywell offers a broad portfolio of PPE for the hospital environment, including face shields and respiratory protection, and solutions to improve patient outcomes and enhance the performance of critical medical equipment.

The financial terms of the investment were not disclosed.

About Rhino Health USA

Fort Worth-based Rhino Health USA (www.rhinohealth.net) is the nation’s first nitrile glove manufacturer. In 2019, the company began operations in Church Rock, New Mexico in partnership with the Navajo Nation. Rhino works closely with the Department of Defense and is currently operating two manufacturing factories and is continuing to aggressively and strategically expand its operations.

About Honeywell

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Its technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

Forward-Looking Statements

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that Honeywell, Rhino Health or their respective management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by Honeywell's and Rhino Health's management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. Each of Honeywell and Rhino Health identify the principal risks and uncertainties that affect their performance in their respective Form 10-Ks and other filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220708005362/en/

Kasey Pipes

kasey@corleypipes.com

Source: Rhino Health USA

FAQ

What is Honeywell's investment in Rhino Health USA about?

Honeywell has finalized terms to invest in Rhino Health USA to enhance U.S. production of nitrile exam gloves, addressing increasing demand.

How will Honeywell's partnership impact glove production?

The partnership aims to increase manufacturing efficiency and production capacity for nitrile exam gloves at Rhino Health's new facility in Fort Worth.

What is the expected market size for nitrile gloves?

The market size for nitrile exam gloves is anticipated to nearly double by the end of the decade.

When is production expected to begin at Rhino Health's new facility?

Production of nitrile exam gloves at Rhino Health's new facility is expected to start by the end of 2022.