Philips consolidates manufacturing

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Tuesday, November 13, 2018

KENNESAW, Ga. – Philips is taking steps to consolidate and transfer manufacturing, R&D operations and related business functions from its facility in Kennesaw, Ga.

The process will continue through the end of 2019, the company says.

“During this period, manufacturing operations in Kennesaw, which includes home oxygen and a limited number of other products, will be transitioned to a third-party manufacturer and existing Philips facilities in western Pennsylvania,” the company stated.

The consolidation will affect about 400 positions in Kennesaw, with plans to transfer 160 positions to facilities in Pennsylvania, the company says.

The decision to consolidate is driven by “business considerations” and is in line with an overall strategy to optimize manufacturing locations for scale and efficiency, as well as support resource and best practice sharing, the company says.

“In addition, it will increase focus on enhancing Philips portable oxygen offerings,” the company stated.

Philips announced earlier this year that it would allow cash customers to buy its POCs directly from the company. It also announced earlier this year that it would discontinue its UltraFill Home Oxygen System by the end of this year.