v.l.n.r.: Philips Austria-Geschäftsführer Christoph Schlager, Landeshauptmann Daniel Fellner, Standortleiter Hans Peter Rammel und Personalleiterin Ilse Rapatz beim Jubiläumsfest „100 Jahre Philips in Österreich“ in Klagenfurt

Bright prospects: How Philips is strengthening its production site in Klagenfurt

09. September 20262 minutes reading time

Quick Info

Who is Philips?

Philips is a global leader in health technology headquartered in Amsterdam. The company has been active in Austria for more than 100 years and today employs nearly 400 people in development, manufacturing, sales, and service. The Klagenfurt site has served as a production and development center since 1962 and plays an important role within Philips' global network. Additional locations are situated in Vienna, St. Pölten, Graz, Leonding, Salzburg, Innsbruck, and Lustenau.

Why does Austria stand out as a location?

Austria stands out for its highly specialized workforce, particularly in medical technology, mechatronics, and electrical engineering, as well as its strong integration of research and automated manufacturing. The country offers a reliable environment for sustainable high-tech production. Dedicated teams build valuable expertise over decades, reflected in an average employee tenure of around 18 years and exceptional competitiveness.

What is Philips producing in Austria?

Philips is investing approximately €25 million in the expansion of its Klagenfurt site. By the end of 2027, annual production capacity for Philips Sonicare electric toothbrush heads is expected to double from around 30 million to approximately 60 million units. To achieve this, the number of highly automated production lines will increase from three to six, while creating around 20 new jobs.

What role does the Austrian Business Agency (ABA) play?

The Austrian Business Agency supports international companies such as Philips as a strategic partner in the expansion of their operations. In Klagenfurt, ABA assisted the local team with a tailored funding workshop and continues to facilitate networking with relevant stakeholders while helping to create optimal conditions for sustainable growth in Austria.

„The expansion of our site is a strong vote of confidence in the expertise of our team. High energy and labor costs remain a challenge, but the expertise of our employees, access to skilled professionals, and excellent infrastructure have made the difference.“

Aerial view of the Philips team in Klagenfurt. © Philips

Aerial view of the Philips site in Klagenfurt. © Philips

Philips offers specialized MRI solutions for children that are designed to reduce anxiety. © Philips

Assembly line inspection at Philips. © Philips

What makes Austria so attractive to companies like Philips?

For Philips, Austria is more than just a manufacturing location. In Klagenfurt, decades of accumulated technical expertise meet the close integration of research, development, and highly automated production. This combination enables the company to continuously improve complex manufacturing processes while remaining internationally competitive.

Austria also offers a highly qualified technical talent pool. Philips recruits specialists in mechatronics, electrical engineering, mechanical engineering, and toolmaking, as well as graduates from technical colleges, universities of applied sciences, and technical universities. Many employees build long-term careers within the company, contributing to an average tenure of approximately 18 years.

How is Philips leveraging Austria’s potential for research and growth?

Austria provides the ideal environment for Philips to combine cutting-edge research, highly automated industrial production, and sustainability in practice. At the Klagenfurt site, R&D and manufacturing work side by side. Innovations in smart oral healthcare, including solutions supported by artificial intelligence, can therefore move directly into production without unnecessary interfaces or delays.

At the same time, the Klagenfurt facility follows ambitious environmental standards. It operates completely landfill-free and uses 100% renewable electricity. This strong commitment to sustainability shapes the company as a whole and is reflected in innovations in medical technology. Philips received the German Sustainability Award 2026 for its "BlueSeal" MRI cooling technology, which dramatically reduces helium consumption.

Good to know!

€ 25 million

Investment in the expansion of the Klagenfurt site

+ 20 jobs

Additional qualified positions, particularly in mechatronics and electrical engineering

How does the ABA support international companies like Philips?

For established companies like Philips, ABA serves as a long-term partner at the interface between business and government. During expansion projects, Austria's national investment promotion agency provides personalized guidance, including targeted workshops with funding experts. ABA also supports companies through integration into regional innovation ecosystems and ongoing dialogue on location-specific and economic policy frameworks, helping ensure sustainable growth and long-term success in Austria.