Siemens Healthineers announced investments in manufacturing that include relocating some operations to the U.S.
The company plans to invest $150 million in new projects to expand production, create jobs and better serve U.S. customers. New investments come on top of $900 million in annual R&D spend in the U.S., as well as $1 billion invested through facilities expansion, acquisitions and strategic partnerships in the U.S. since 2019.
Crucially, the company said it plans to bring manufacturing back to the U.S. with the relocation of manufacturing operations for Varian. Varian, which Siemens Healthineers bought for $16.4 billion in 2021. The company plans to move Varian’s manufacturing from Baja, Mexico, to Palo Alto, California, adding approximately 50 new manufacturing jobs. It expects the change to reduce supply chain complexities and improve its ability to respond to demand for radiotherapy solutions.
The move toward domestic manufacturing comes as many medtech companies look to improve their U.S. infrastructure in advance of potential tariffs imposed by the Trump administration.
In addition to the Varian move, the company plans to strengthen its supply chain resilience by opening two new mega supply depots. The depots, located in Dayton, New Jersey, and Manteca, California, should increase the availability of parts by nearly a third to increase flexibility. Additionally, the company plans to construct a 60,000-square-foot Experience Center in Charlotte, North Carolina, to help providers digitize and transform care delivery.
“Our significant U.S. employee base and broad portfolio of innovations are making vital contributions to the American healthcare system. With these new investments we’re further demonstrating our long-term commitment and desire to grow along with the American economy,” said John Kowal, president and head of Siemens Healthineers in the Americas.
Erlangen, Germany-based Siemens Healthineers is the world’s third-largest medical device company, according to our 2024 Medtech Big 100 ranking.
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