BYD Mask Supply Contract with California Postpones Again

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BYD [1211:HK] has not obtained certification for its masks from the US National Institute for Occupational Safety and Health (NIOSH) yet as of June 1, after resubmitting its application last month, as reported by The Paper on June 3, citing the Wall Street Journal. BYD’s North America branch indicated that the deal was not canceled and it received the second extension regarding the supplying contract with California. The firm expected to get the permit as soon as next week.

Originally, the USD1bn worth of mask supply contract with California stipulated that BYD had to complete the NIOSH certification for its masks before April 30. However, after passing the physical assessment of mask quality and production procedures, the Chinese company did not get the certification due to unqualified documents submitted to the NIOSH as of May 13. Then, BYD returned half of the USD495m deposit, while California extended the certification completion date to May 31 and added an additional order of 100m surgical masks. Once BYD gets the certification from the NIOSH, the company will provide 300m N95 respirators and 200m surgical masks in total for California. After the COVID-19 outbroke in China, BYD’s subsidiary BYD Precision Manufacture started producing masks in February and got the COVID-19 emergency use authorizations (EUA) from the US Food and Drug Administration (FDA) in early April. Currently, BYD’s daily production output of masks has reached 50m units and is still increasing at 1m to 3m pieces every day, becoming the largest mask producer worldwide.

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