Health care venture to establish manufacturing facility in Norfolk

Princo LLC, a joint venture comprised of health care companies Premier Inc., Vario Labs LLC and Caretrust LLC, will invest up to $23.8 million to establish a health care products manufacturing facility in Norfolk, creating an expected 284 jobs, Gov. Glenn Youngkin announced Tuesday.

Princo will initially invest $18.1 million with the potential to invest another $5.7 million. The 80,000-square-foot facility, located in the Norfolk Industrial Park, will manufacture incontinence pads, which are used by more than 4,400 hospitals and other health care providers around the country. The project brings the production of the pads from Southeast Asia to the United States.

“This tremendous new venture represents the onshoring of a necessary health care product, a boost for the industry supply chain, and high-quality manufacturing jobs all happening in the commonwealth of Virginia,” Youngkin said in a statement. “Princo LLC’s new manufacturing facility in the city of Norfolk will benefit from the region’s outstanding logistical advantages, skilled workforce and diverse ecosystem of suppliers, innovators and customers. This venture is a blueprint for future investment in Virginia, and we look forward to the company’s future success.”

Vario Labs, a wholly owned subsidiary of PremiumEstore LLC, also known as Premium-PPE, is based in Virginia Beach. Premium-PPE is a domestic manufacturer of personal protective equipment, including disposable masks. It has supplied more than 100 million FDA-cleared masks to the federal government since early 2020.

Charlotte, North Carolina-based Premier Inc. does group purchasing, technology, consulting and provides other services to the health care industry. Caretrust specializes in international materials, global product sourcing, logistics, supply chain management and manufacturing operations.

“A strong workforce, expanding port infrastructure and access to domestic and global markets make the commonwealth of Virginia an ideal location for the production of incontinence pads — a vital product for our nation’s healthcare providers,” Michael J. Alkire, president and CEO of Premier, said in a statement. “We thank the governor, the Virginia Economic Development Partnership, and the city of Norfolk officials for their work with us on this project. This investment and their support will help drive greater domestic production of the supplies providers need to care for patients — and strengthen resiliency in the U.S. health care supply chain.”

Princo will begin opening and hiring for the facility in March and a grand opening is scheduled for April, Brent Dillie, CEO of Princo USA, told Virginia Business. He said the pads are expected to be available for health care providers to purchase later in the spring/summer.

“With this investment, we are building market competition and bringing production to the United States to support health care providers and patients nationwide,” he said.

VEDP worked with Norfolk to secure the project for Virginia. Youngkin approved a $50,000 grant from the Commonwealth’s Opportunity Fund to assist the city with the project. Princo is eligible to receive benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development, as well as from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Funding and services to support employee training activities will be provided through the Virginia Jobs Investment Program.