In June 2017, Siemens Healthineers initiated the expansion and refurbishment of its laboratory diagnostic manufacturing facility located in Walpole, Massachusetts, US.

Estimated to cost $300m, the expanded facility will be used to manufacture the company’s Atellica^™ Solution. The expansion is scheduled to be completed in three years.

The project is in line with Siemens’ strategic growth plans and is expected to increase the area’s property tax revenue by approximately $10m over the next 20 years.

In addition, the project will create 700 new jobs over the next ten years, increasing the total number of employees at the facility to 1,600 by 2026.

Siemens Healthineers Walpole facility expansion details

Siemens Healthineers’ existing 500,000ft² manufacturing facility will be expanded by an additional 300,000ft² as part of the project.

The additional space will include more manufacturing spaces, a warehouse, office spaces, and a lab complex.

The facility will be used to produce laboratory diagnostics assays for immunoassay instruments, as well as consumables for molecular and blood gas testing instruments.

The expansion will be undertaken in multiple phases. Topping off of the steel frame structure of the building was completed in January 2018.

Products produced at the expanded Walpole facility

The expanded facility will produce the Atellica^TM solution, which is a flexible, scalable and automation-ready immunoassay and chemistry analyser.

The solution enables laboratory diagnostics professionals to spend more time on driving outcomes and less time on operations. It is designed to overcome common clinical laboratory challenges and combine immunoassay and clinical chemistry analysers to deliver better outcomes.

Financing for Walpole laboratory diagnostic manufacturing facility expansion

Massachusetts’ local governments are providing investment incentives for the expansion project.

The Commonwealth of Massachusetts is providing job creation tax incentives through the Massachusetts Life Sciences Centre and infrastructure support under the MassWorks and workforce training grants.

In addition, Walpole is supporting the project through tax increment financing and property tax abatement.

Contractors involved

Jacobs Engineering Group was awarded the contract to provide engineering and construction support for the expansion project in July 2017.

Work includes masterplan development for production capacity enhancement, expansion of office and laboratory spaces and the addition of a warehouse at the existing facility.

Marketing commentary on Siemens Healthineers

Siemens Healthineers offers products and services in the areas of diagnostics, imaging and molecular medicine. The company produces 10bn diagnostic tests a year.

The company also develops digital health and enterprise services and has a workforce of 46,000 employees worldwide.

Established in 1979, Siemens’ Walpole manufacturing facility is one of the company’s 60 manufacturing sites in the US. The facility underwent an initial expansion in 2007 and was selected for a further expansion due to the advantages the location offers in terms of infrastructure and manufacturing costs.

Financial support provided by the Commonwealth of Massachusetts and Massachusetts Life Sciences Centre also contributed to the decision.