Philips to invest $150M to expand AI health tech offerings

Philips

(NYSE: PHG)
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announced today that it plans to invest more than $150 million in U.S. manufacturing and R&D efforts.

The Dutch medtech giant’s investment is geared toward AI-powered offerings. As part of it, the company today unveiled the expansion of its Reedsville, Pennsylvania, manufacturing plant. This plant produces AI-enabled ultrasound systems for hospitals across the U.S.

Philips said these investments come on top of its annual $900 million R&D investment in the U.S. In addition to Reedsville, the company recently announced the expansion of its image-guided therapy facility in Plymouth, Minnesota. The investment also includes additional manufacturing and R&D projects over the next several years, supporting U.S. growth.

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The Philips Reedsville plant currently manufactures transducers. With the expansion, it also offers customizations for software and configurations of ultrasound systems for specific clinical procedures in cardiovascular, general and maternal care.

Philips said it expects the expansion to add 24,000 square feet of manufacturing space, plus 40,000 square feet of warehouse space. It anticipates the creation of 120 skilled manufacturing in Reedsville. The Plymouth expansion should add more than 150 new jobs and includes a new medtech training center.

“The proposed planned expansion of our manufacturing facilities is a demonstration of our deep commitment to the U.S. region,” said Jeff DiLullo, chief region leader, Philips North America. “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 Philips expansion in central Pennsylvania comes about a year after major Philips layoffs in the Pittsburgh area that involved its Respironics business, which was the subject of a major recall involving millions of CPAP and BiPAP ventilators and other respiratory devices. Philips eliminated hundreds of Respironics manufacturing jobs around Pittsburgh, outsourcing the work to a contract manufacturer’s operations in Thailand.

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