Royal Philips, the parent company of Philips Healthcare, announced that it will invest in a new R&D facility for CT and nuclear medicine in Cleveland.
The facility will be geared toward optimizing the learning environment as well as technical and clinical training for field service engineers and customers involved in the company's CT and advanced molecular imaging businesses.
In the second half of 2018, Philips will also close down its diagnostic imaging manufacturing operations in Cleveland. A company spokesperson noted that since 2014 the firm has expanded its manufacturing in Haifa, Israel, and Suzhou, China; the Cleveland facility currently produces less than 3% of the company's overall diagnostic imaging sales volume.
As a result, Philips has decided to use Cleveland as a focus for R&D and training, while the company's CT and advanced molecular imaging headquarters will be moved to another U.S. location.
Production at the Cleveland facility was temporarily halted in 2014 due to concerns about quality control following an inspection by the U.S. Food and Drug Administration (FDA). The site also received a warning letter from the FDA in 2011.
