MRI Equipment Plant to Provide Advanced Systems to Emerging Countries

Customers across Latin America are expected to benefit from shorter delivery periods and reduced equipment costs.

The factory also contributes to the development of Brazil's high-tech industry, as well as to the regional economy in the state of Minas Gerais, where the facility is based. In October 2008, Philips Healthcare (Best, The Netherlands) celebrated the opening of the plant. Starting November 2008, the plant will also produce computed tomography (CT) devices. It will be the only site in Latin America manufacturing the two types of equipment, and one of only a few facilities manufacturing such devices in the world. The new production plant was built at the former site of VMI Sistemas Médicos, a Brazilian diagnostics equipment manufacturer acquired by Philips in 2007.

"The use of advanced diagnostic equipment such as the devices that will be manufactured at the new facility is well established in hospitals across the region,” stated Daurio Speranzini Júnior, vice president for Philips Healthcare in Latin America. "This factory is part of Philips' strategy to offer the right solutions in the right markets, and reflects our belief in the growing importance of emerging markets such as Latin America.”

Three types of MRI device will be manufactured in Brazil: the Intera 1.5T and Achieva 1.5T and 3.0T. At first, 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 company is currently identifying and equipping locally based factories to enable them to manufacture many of the highly advanced components used in the devices. "In a sense, we are going through the same process that the Brazilian automobile industry underwent a few decades ago--by strengthening a specialized industrial sector we can position the country amongst the leading manufacturers of medical equipment globally,” added Mr. Speranzini.

The intended delivery time of the products is significantly reduced from eight months to 30 days. There will also be a reduction of approximately 15% on the final price of the MRI equipment due to a combination of reduced taxes and lowered production costs.

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