Health technology company Philips announced it planned to invest more than $150 million into U.S. manufacturing and R&D, like the expansion of its manufacturing facility in Reedsville, Pa.
The Reedsville plant produces AI-enabled ultrasound systems for hospitals across the U.S. Philips said while the Reedsville plant currently manufactures transducers, it hopes to expand the site’s function to customize the software and configuraitons of the ultrasound system for specific clinical procedures like cardiovascular, general and maternal care following the expansion. Philips currently serves about 90 percent of U.S. hospitals, said it would invest more into R& D for AI-based technologies and software, as well as to support local manufacturing.
The announcement is in addition to Philips’ annual $900 million in R&D investment, and the investments the company makes into it nearly 17,000 colleagues across 40 facilities in the United States.
Other facilities included in the expansion are the Philips Image Guided Therapy facility in Plymouth, Minn., and additional manufacturing and R&D projects which will come of the next several years to support the company’s growth.
“The proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region,” Jeff DiLullo, Chief Region Leader, Philips North America, said. “Each year, Philips spends $900 million in R&D in the U.S. to drive innovation and deliver cutting-edge technology that empowers healthcare professionals to diagnose, treat and monitor patients more effectively. Increasing our manufacturing and R&D capabilities will create jobs and accelerate our ability to deliver better care for more people with innovative AI-enabled solutions.”
The Reedsville expansion is expected to add 24,000 square feet of manufacturing space as well as 40,000 square feet of warehouse space. Officials said it will create 120 skilled manufacturing jobs. The expansion of the imaging-therapy facility in Plymouth, MN will create more than 150 jobs.