by Gus Iversen
, Editor in Chief | June 22, 2017
Dunlee, the CT and X-ray components company acquired by Philips in 2001, will no longer be conducting operations from its facility in Aurora, Illinois, according to a statement provided by a Philips spokesperson to HealthCare Business News.
Citing a significant decline in the replacement parts market, those operations — consisting of generator, tubes and components manufacturing — will be moved to an existing Philips location in Hamburg, Germany.
The move will affect approximately 200 employees at the existing Aurora site and is expected to be complete before the end of the year.
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Here is the statement Philips provided in its entirety:
Philips Statement Regarding the Aurora, Illinois Facility
As part of Philips' ongoing strategic review of our Diagnostic Imaging competitive market, the company has taken the decision to transfer operations from our Generators, Tubes and Components (GTC) facility in Aurora, Illinois in the United States, to an existing Philips site in Hamburg, Germany.
This decision was not taken lightly, and reflects the fact that the GTC replacement market, which was primarily served by the Aurora facility, has been significantly declining in recent years. As a result, the company needed to take steps to accommodate current customers more efficiently while adapting to upcoming market changes.
The Philips site in Hamburg currently serves the growing Original Equipment Manufacturer (OEM) market for X-segments products, and will also accommodate additional GTC replacement activity going forward. Philips expects that future growth is in the X-segment for OEMs, made in Hamburg, leading to a further declining load in the Aurora factory. The Hamburg site will also accommodate the remaining GTC replacement activities.
This action will result in the closure of the Aurora facility, projected for the end of 2017, with initial closure activities beginning in June 2017. Approximately 200 employees at the site will be affected. Philips is committed to providing affected employees with a comprehensive separation package and related support.
A limited number of site employees will be offered the opportunity to remain within Philips to provide GTC replacement market service and technical support in North America.
The site closure is being conducted by Philips under all applicable U.S. federal, state, and local legal requirements and we have notified the appropriate government authorities.
Philips will continue to work closely with affected employees, to carefully manage the transition and ensure appropriate assistance and resources are available at this time.
Philips is committed to maintaining and growing quality services, as we continue to increase its focus on the needs of our customers.
When asked by HCB News if Dunlee will be changing its focus in any way in light of these developments, the spokesperson replied, "The GTC OEM and replacement business, currently marketed under the Dunlee brand, will continue following the operational transfer."
Going forward, the Dunlee brand will focus even more on the OEM market, while continuing to serve the replacement market, the spokesperson added.