Andover now headquarters for Philips Electronics: Parent company headquarters moves here from New York City

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July 24, 2008

By Brian Messenger

Philips Electronics North America will move its headquarters to Andover from New York City, a move officials are calling a "very big win for Andover."

The announcement was made July 22 before a gathering that included Gov. Deval Patrick, local officials and company employees.

Andover is already the global co-headquarters of Philips Healthcare, a division of Philips Electronics. Roughly 2,000 employees work out of four buildings on Minuteman Road. A fifth building in the same industrial park off River Road will be leased by the company to accommodate the 50 to 75 new Philips Electronic employees coming from New York City, according to Philips Electronics North America CEO Scott Weisenhoff.

Calling Philips Healthcare the "foremost growth engine" for the company's North American operations, Weisenhoff commended the ingenuity of the state economy and said Massachusetts has provided Philips with the work force it needs.

"It has helped fuel Philips' growth and ensures our future," said Weisenhoff.

Philips already employs close to 5,000 people in Massachusetts, with locations in Andover, Burlington, Framingham, Fall River and Wilmington, as well as sales offices across the state, Weisenhoff said at the July 22 event.

"We're taking this opportunity to place our headquarters close to our businesses," Weisenhoff said.

Philips estimates that its presence in the state will contribute $266 million in annual payroll to the state economy.

Both Patrick and Andover legislators referred to the relocation as a sign of commitment to the state and town.

"That's a great pick up, and we know you already have a big footprint," Patrick told Philips officials. "We look forward to continuing to encourage your growth."

Patrick said government and business must work together as a team, and that the state must provide businesses with a well-educated and well-trained work force, a reasonable tax and regulatory environment, and investment in infrastructure.

"Our door is open to you — all of our doors," said Patrick. "When you succeed, we do."

"In the era of consolidation, this is a very big win for Andover to come out on top," said Rep. Barry Finegold (D-Andover). "Consolidation is actually benefiting the town. This town has something to be very proud of."

Town Manager Buzz Stapczynski, who toured Philips' Minuteman Road facility with Patrick, said the announcement was a testament to what both Andover and the state have to offer high-tech businesses.

"This is certainly good news about the life-science cluster we have in Andover," said Stapczynski. "This reaffirms our belief that Andover is a good place to move and expand."

Philips Electronics North America, owned by Amsterdam-based Royal Philips Electronics, operates 50 major facilities in 22 U.S. states and has grown from 20,000 to 30,000 U.S. employees in the last year, according to the company.

Philips Electronics North America boasts annual sales of more than $12 billion and is marking its 75th anniversary in America this year. Along with consumer lifestyle and lighting products, Philips Healthcare manufacturers medical devices like heart defibrillators, patient monitoring systems, X-ray and ultrasound machines and medical data software.

Philips Healthcare, also known as Philips Medical Systems, has operated out of Andover since 2000, when it bought Agilent Technologies Inc., the former medical-device division of Hewlett-Packard.

Weisenhoff said it is possible his company could expand its facilities on Minuteman Road, but it must first determine its long-term plans on the site, he said.

"As of right now we're able to have all the employees within that fifth building," said Weisenhoff.