Penlon Medical Gas Solutions has opened a new production facility at its headquarters in Abingdon, Oxfordshire where it employs more than 70 people.
The company, part of Atlas Copco, provides medical gas systems, medical vacuum equipment, and pipeline components for hospitals.
The new 20,000 sq ft (1,860 sq m) facility makes products such as breathing air for hospitals and compressed air to drive surgical tools.
General manager Ian Gil-Rodriguez said the facility would mean better service for customers and was "one more step in our continuing development of our specialist manufacturing capabilities. The new factory will adopt lean manufacturing principles and continue to innovate within the sector."