Philips has announced it will invest more than $150 million in its United States manufacturing and research operations. The investment includes the expansion of its facility in Reedsville, Pennsylvania, which currently produces ultrasound transducers. The site will be upgraded to also handle the software customization and configuration of scanners for various medical specialties, including cardiovascular disease and maternal care.
The project will add 24,000 square feet of manufacturing space and 40,000 square feet of warehouse capacity. It is expected to create 120 manufacturing jobs. “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 for Philips North America.
Philips stated that the Reedsville expansion will allow the facility to prepare ultrasound systems for specific procedures. The company gave an example of its ultrasound platform designed to assist physicians in diagnosing structural heart and coronary artery disease.
According to DiLullo, Philips spends $900 million annually on research and development in the United States to develop new technologies that help healthcare providers diagnose, treat, and monitor patients. He added that expanding manufacturing and R&D will create jobs and increase the company’s ability to deliver AI-enabled solutions.
Earlier this year, Philips announced a $31 million expansion at its operations in Minnesota, focused on its image-guided therapy division. That project includes constructing a clinician training center in Plymouth, near Minneapolis, and adding more than 150 jobs.
The $150 million investment will also support future U.S. manufacturing and R&D projects over the coming years. Philips said it employs about 17,000 people across its medtech business in the United States, with staff located in every state and operations in 40 facilities.
The Reedsville site currently manufactures handheld ultrasound probes that use sound waves to produce medical images. After the expansion, the facility will also customize the software and configuration of ultrasound systems for specialized medical uses.
Philips expects its ultrasound business to grow in the second half of the year. In a July earnings call, CEO Roy Jakobs said the company has seen strong order growth in the segment and that recent ultrasound product launches have been well received.
The investment is part of Philips’ plan to expand its capabilities in manufacturing and research, with a focus on AI-enabled ultrasound technologies. The company said the upgrades will support both production and customization of systems tailored to different medical procedures, while also adding jobs and increasing available space for manufacturing and storage.
