Philips opens Latin American MRI plant

Philips Healthcare has opened its first MRI manufacturing facility in Latin America, the Andover, MA, company announced this week.

The facility is located in the state of Minas Gerais and will manufacture Intera 1.5T, Achieva 1.5T, and Achieva 3.0T scanners; initially, 70% of the components for the devices will be imported, but Philips' intention is to increase the proportion of locally produced components to 60% by mid-2010.

The facility was built at the former site of VMI Sistemas Médicos, a Brazilian diagnostics equipment manufacturer that Philips acquired in 2007. Starting in November, the plant will also produce CT scanners.

Scanners made at the factory will be shipped to customers throughout Latin America, and Philips estimates that the delivery time of products will be reduced from eight months to 30 days. Prices for Latin American customers should also be reduced by 15% due to a combination of lower taxes and production costs.

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