Thermo Fisher Scientific Awarded $192.5 Million U.S. Government Contract to Expand Domestic Pipette Tip Manufacturing

Rhea-AI Summary

Thermo Fisher Scientific (NYSE: TMO) has secured a $192.5 million contract from the U.S. Department of Defense to boost domestic production of pipette tips, essential for research and diagnostics, including COVID-19 testing. The award includes co-investment in a new, energy-efficient manufacturing facility in North Carolina, set to commence operations by Q3 2023 and complete by Q3 2024. This initiative aims to enhance supply chain resilience and job creation while supporting the company’s net-zero carbon emissions goal by 2050.

Positive

• Secured a $192.5 million contract, ensuring a reliable supply of pipette tips.
• New manufacturing facility in North Carolina expected to create hundreds of jobs.
• Aligned with carbon neutrality goals, enhancing corporate sustainability.

Negative

• None.

WALTHAM, Mass., Sept. 2, 2021 /PRNewswire/ -- Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today announced a $192.5 million contract award from the U.S. Department of Defense (DoD) to ensure reliable domestic production of pipette tips, which are used within research and diagnostic labs to dispense precise amounts of liquid. In mid-2020, the company announced its own investments to increase pipette tip production capacity to support COVID-19 testing.

With the DoD award, issued on behalf of and in coordination with the U.S. Department of Health and Human Services (HHS), Thermo Fisher will co-invest with the U.S. government in building a new, state-of-the-art, energy efficient manufacturing facility for pipette tips, which are used in vital disease research and in high volumes for processing of diagnostic tests nationally, including COVID-19, during the pandemic.

The new center of excellence in laboratory consumables manufacturing and operations will be in North Carolina and designed in line with Thermo Fisher's carbon neutrality goals. Construction will be fully completed by Q3 2024, with pipette tip manufacturing starting as early as Q3 2023. The site, expected to create hundreds of new jobs in the region, has the potential for future expansion across a variety of high-demand product lines. 

"This award and the resulting capacity ensure that future demand surges in the U.S., from the current COVID-19 pandemic to the next crisis, will be met with greater supply assurance," said Mark Stevenson, executive vice president and chief operating officer. "Supply chain agility is critical to our customers, our government and to the health and safety of our citizens, and we're excited to bring this state-of-the-art capacity online, especially since its efficient design will also showcase our commitment to achieve net-zero carbon emissions by 2050."

Laboratory consumables have been vital in global COVID-19 mobilization, from sample collection vials for diagnostic test kits to lab plastics and materials for vaccine production and biobanking. Since the start of the pandemic, Thermo Fisher has invested more than $180 million to expand its laboratory plastics consumables production and another $600 million to increase global bioprocessing capacity. In addition, the company opened new sites dedicated to manufacturing viral transport media used in COVID-19 sample collection and cGMP plasmid DNA used in mRNA-based vaccines.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $30 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, we are here to support them. Our global team of more than 80,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon. For more information, please visit www.thermofisher.com.

Media Contact Information:
Ron O'Brien
Phone: 781-622-1242
E-mail: ron.obrien@thermofisher.com

Investor Contact Information:
Rafael Tejada
Phone:  781-622-1356
E-mail: rafael.tejada@thermofisher.com

 

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SOURCE Thermo Fisher Scientific

FAQ

What is the value of the contract awarded to Thermo Fisher Scientific by the DoD?

The contract awarded to Thermo Fisher Scientific by the U.S. Department of Defense is valued at $192.5 million.

When will the new pipette tip manufacturing facility begin operations?

The new manufacturing facility for pipette tips is expected to start operations by Q3 2023.

What are the environmental goals associated with Thermo Fisher's new facility?

The new facility is designed to align with Thermo Fisher's goal of achieving net-zero carbon emissions by 2050.

Where will the new pipette tip manufacturing facility be located?

The new manufacturing facility will be located in North Carolina.

How does the new contract affect the supply chain for Thermo Fisher?

The contract aims to enhance supply chain resilience and ensure reliable domestic production of essential lab consumables.