Officials at Philips Electronics North America, a unit of Royal Philips Electronics, have announced that the company will be moving its headquarters to Andover, Mass., where it expects to boost the state's economy.
Philips Electronics North America had been headquartered in New York City.
As a result of the relocation, Massachusetts will have the largest Philips presence in North America, with nearly 5,000 employees, six major worksites and significant manufacturing facilities.
The company estimates that its presence will inject more than $266 million in payroll into the Massachusetts economy annually, when taking into account the various Philips facilities including executive and administrative offices, innovation centers, R&D, warehousing and manufacturing.
"There are many compelling reasons for choosing Massachusetts as the place to relocate our regional headquarters," said Scott Weisenhoff, chief executive officer for Philips Electronics North America. "Massachusetts is the global headquarters for our healthcare business and our Solid State Lighting business, which drives our leadership in energy efficient lighting solutions. These are important growth engines for our company, making it imperative that our corporate office work closely with these business units to ensure growth. As Philips grows, so too will our investment in Massachusetts and North America."
In the last year, Philips has grown from approximately 20,000 to more than 30,000 employees in the United States with offices and operations at 50 major facilities in 22 states.
The company reported that sales for North America are now greater than $12 billion annually, making it the biggest single market for Philips globally.
Last week, the company reported second quarter sales had increased to $10.3 billion globally, up 7 percent compared to the same period in 2007. Sales for North America were $3.24 billion, an increase of 23 percent compared to the second quarter of 2007, and representing more than 30 percent of Philips' global sales.
"I am delighted to welcome Philips Electronics to Massachusetts," said Gov. Deval Patrick. "Company investments like these speak to the unique benefits the Commonwealth offers employers: A highly educated and trained workforce, world-class research and educational institutions, and a state government committed to creating a business climate where companies and their employees can prosper."
To commemorate the new location Philips representatives provided a HeartStart defibrillator to the community, 25 free subscriptions to its Lifeline medial alert system for indigent elderly in the Framingham community, and the eW Profile Powercore under-shelf display light, a proof point that demonstrates new LED lighting sources that use 40 percent less energy than efficient fluorescent lighting for residential and commercial spaces.
"Massachusetts can be proud that many of the technologies we are creating and manufacturing as we strive to become the world's leading health and well-being brand - including LED Lighting, home healthcare solutions and other life saving healthcare equipment, are being developed every day in this state, and sent around the world," Weisenhoff said.