Dive Brief:
- Philips said Thursday that it will invest more than $150 million to expand manufacturing in the U.S. of AI-enabled technologies.
- The investment includes expanding manufacturing and research and development at a site in Reedsville, Pennsylvania, that makes AI-enabled ultrasound systems. The addition is expected to bring 24,000 more square feet of manufacturing space and 40,000 square feet of warehouse space.
- Philips is making the investment as it expects growth in its ultrasound business and as the company works to optimize its manufacturing sites.
Dive Insight:
Philips’ site in Reedsville manufactures ultrasound transducers, or the handheld probes that emit sound waves to create an image.
After the expansion, the facility will also customize the software and configurations of ultrasound systems for specific procedures. For example, Philips has an ultrasound platform for helping doctors diagnose structural heart and coronary artery disease.
Philips expects the addition will create 120 manufacturing jobs.
Last year, Philips discussed plans to expand an image-guided therapy facility in Plymouth, Minnesota. That addition is expected to add 150 jobs.
Philips expects its ultrasound business to grow in the second half of the year. CEO Roy Jakobs told investors in a July earnings call that he has seen strong order growth in the segment, and new launches in ultrasound are “really seeing a good uptake.”
