diff --git a/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.cpp b/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.cpp
new file mode 100644
index 00000000..7dc89b1a
--- /dev/null
+++ b/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.cpp
@@ -0,0 +1,197 @@
+#include "CreatePositionedCaloCells.h"
+
+// k4geo
+#include "detectorCommon/DetUtils_k4geo.h"
+
+// k4FWCore
+#include "k4Interface/IGeoSvc.h"
+
+// DD4hep
+//#include "DD4hep/Detector.h"
+//#include "DD4hep/Volumes.h"
+//#include "TGeoManager.h"
+
+// edm4hep
+#include "edm4hep/CalorimeterHit.h"
+
+DECLARE_COMPONENT(CreatePositionedCaloCells)
+
+CreatePositionedCaloCells::CreatePositionedCaloCells(const std::string& name, ISvcLocator* svcLoc) :
+GaudiAlgorithm(name, svcLoc), m_geoSvc("GeoSvc", name) {
+  declareProperty("hits", m_hits, "Hits from which to create cells (input)");
+  declareProperty("cells", m_cells, "The created calorimeter cells (output)");
+
+  declareProperty("positionsTool", m_cellPositionsTool, "Handle for cell positions tool");
+  declareProperty("crosstalkTool", m_crosstalkTool, "Handle for the cell crosstalk tool");
+  declareProperty("calibTool", m_calibTool, "Handle for tool to calibrate Geant4 energy to EM scale tool");
+  declareProperty("noiseTool", m_noiseTool, "Handle for the calorimeter cells noise tool");
+  declareProperty("geometryTool", m_geoTool, "Handle for the geometry tool");
+}
+
+StatusCode CreatePositionedCaloCells::initialize() {
+  StatusCode sc = GaudiAlgorithm::initialize();
+  if (sc.isFailure()) return sc;
+
+  info() << "CreatePositionedCaloCells initialized" << endmsg;
+  info() << "do calibration : " << m_doCellCalibration << endmsg;
+  info() << "add cell noise      : " << m_addCellNoise << endmsg;
+  info() << "remove cells below threshold : " << m_filterCellNoise << endmsg;
+  info() << "emulate crosstalk : " << m_addCrosstalk << endmsg;
+
+  // Initialization of tools
+
+  // Cell position tool
+  if (!m_cellPositionsTool.retrieve()) {
+    error() << "Unable to retrieve the cell positions tool!!!" << endmsg;
+    return StatusCode::FAILURE;
+  }
+  // Cell crosstalk tool
+  if (m_addCrosstalk) {
+    if (!m_crosstalkTool.retrieve()) {
+      error() << "Unable to retrieve the cell crosstalk tool!!!" << endmsg;
+      return StatusCode::FAILURE;
+    }
+  }
+  // Calibrate Geant4 energy to EM scale tool
+  if (m_doCellCalibration) {
+    if (!m_calibTool.retrieve()) {
+      error() << "Unable to retrieve the calo cells calibration tool!!!" << endmsg;
+      return StatusCode::FAILURE;
+    }
+  }
+  // Cell noise tool
+  if (m_addCellNoise || m_filterCellNoise) {
+    if (!m_noiseTool.retrieve()) {
+      error() << "Unable to retrieve the calo cells noise tool!!!" << endmsg;
+      return StatusCode::FAILURE;
+    }
+    // Geometry settings
+    if (!m_geoTool.retrieve()) {
+      error() << "Unable to retrieve the geometry tool!!!" << endmsg;
+      return StatusCode::FAILURE;
+    }
+    // Prepare map of all existing cells in calorimeter to add noise to all
+    StatusCode sc_prepareCells = m_geoTool->prepareEmptyCells(m_cellsMap);
+    if (sc_prepareCells.isFailure()) {
+      error() << "Unable to create empty cells!" << endmsg;
+      return StatusCode::FAILURE;
+    }
+  }
+
+  // Copy over the CellIDEncoding string from the input collection to the output collection
+  auto hitsEncoding = m_hitsCellIDEncoding.get_optional();
+  if (!hitsEncoding.has_value()) {
+    error () << "Missing cellID encoding for input collection" << endmsg;
+    return StatusCode::FAILURE;
+  }
+  m_cellsCellIDEncoding.put(hitsEncoding.value());
+
+  return StatusCode::SUCCESS;
+}
+
+StatusCode CreatePositionedCaloCells::execute() {
+  // Get the input collection with Geant4 hits
+  const edm4hep::SimCalorimeterHitCollection* hits = m_hits.get();
+  debug() << "Input Hit collection size: " << hits->size() << endmsg;
+
+  // 0. Clear all cells
+  if (m_addCellNoise) {
+    std::for_each(m_cellsMap.begin(), m_cellsMap.end(), [](std::pair<const uint64_t, double>& p) { p.second = 0; });
+  } else {
+    m_cellsMap.clear();
+  }
+
+
+  // 1. Merge energy deposits into cells
+  // If running with noise, map was already prepared in initialize().
+  // Otherwise it is being created below
+  for (const auto& hit : *hits) {
+    verbose() << "CellID : " << hit.getCellID() << endmsg;
+    m_cellsMap[hit.getCellID()] += hit.getEnergy();
+  }
+  debug() << "Number of calorimeter cells after merging of hits: " << m_cellsMap.size() << endmsg;
+
+  // 2. Emulate cross-talk (if asked)
+  if (m_addCrosstalk) {
+    // Derive the cross-talk contributions without affecting yet the nominal energy
+    // (one has to emulate crosstalk based on cells free from any cross-talk contributions)
+    m_crosstalkCellsMap.clear(); // this is a temporary map to hold energy exchange due to cross-talk, without affecting yet the nominal energy
+    // loop over cells with nominal energies
+    for (const auto& this_cell : m_cellsMap) {
+      uint64_t this_cellId = this_cell.first;
+      auto vec_neighbours = m_crosstalkTool->getNeighbours(this_cellId); // a vector of neighbour IDs
+      auto vec_crosstalks = m_crosstalkTool->getCrosstalks(this_cellId); // a vector of crosstalk coefficients
+      // loop over crosstalk neighbours of the cell under study
+      for (unsigned int i_cell=0; i_cell<vec_neighbours.size(); i_cell++) {
+        // signal transfer = energy deposit brought by EM shower hits * crosstalk coefficient
+        double signal_transfer = this_cell.second * vec_crosstalks[i_cell];
+        // for the cell under study, record the signal transfer that will be subtracted from its final cell energy
+        m_crosstalkCellsMap[this_cellId] -= signal_transfer;
+        // for the crosstalk neighbour, record the signal transfer that will be added to its final cell energy
+        m_crosstalkCellsMap[vec_neighbours[i_cell]] += signal_transfer;
+      }
+    }
+
+    // apply the cross-talk contributions on the nominal cell-energy map
+    for (const auto& this_cell : m_crosstalkCellsMap) {
+      m_cellsMap[this_cell.first] += this_cell.second;
+    }
+    
+  }
+
+  // 3. Calibrate simulation energy to EM scale
+  if (m_doCellCalibration) {
+    m_calibTool->calibrate(m_cellsMap);
+  }
+
+  // 4. Add noise to all cells
+  if (m_addCellNoise) {
+    m_noiseTool->addRandomCellNoise(m_cellsMap);
+  }
+
+  // 5. Filter cells
+  if (m_filterCellNoise) {
+    m_noiseTool->filterCellNoise(m_cellsMap);
+  }
+
+  // 6. Copy information to CaloHitCollection
+  edm4hep::CalorimeterHitCollection* edmCellsCollection = new edm4hep::CalorimeterHitCollection();
+  for (const auto& cell : m_cellsMap) {
+    if (m_addCellNoise || (!m_addCellNoise && cell.second != 0)) {
+      auto newCell = edmCellsCollection->create();
+      newCell.setEnergy(cell.second);
+      uint64_t cellid = cell.first;
+      newCell.setCellID(cellid);
+
+      // add cell position
+      auto cached_pos = m_positions_cache.find(cellid);
+      if(cached_pos == m_positions_cache.end()) {
+        // retrieve position from tool
+        dd4hep::Position posCell = m_cellPositionsTool->xyzPosition(cellid);
+        edm4hep::Vector3f edmPos;
+        edmPos.x = posCell.x() / dd4hep::mm;
+        edmPos.y = posCell.y() / dd4hep::mm;
+        edmPos.z = posCell.z() / dd4hep::mm;
+        m_positions_cache[cellid] = edmPos;
+        newCell.setPosition(edmPos);
+      }
+      else {
+        newCell.setPosition(cached_pos->second);
+      }
+
+      debug() << "Cell energy (GeV) : " << newCell.getEnergy() << "\tcellID " << newCell.getCellID() << endmsg;
+      debug() << "Position of cell (mm) : \t" << newCell.getPosition().x/dd4hep::mm
+                                      << "\t" << newCell.getPosition().y/dd4hep::mm
+                                      << "\t" << newCell.getPosition().z/dd4hep::mm << endmsg;
+    }
+  }
+
+  // push the CaloHitCollection to event store
+  m_cells.put(edmCellsCollection);
+
+  debug() << "Output Cell collection size: " << edmCellsCollection->size() << endmsg;
+
+  return StatusCode::SUCCESS;
+}
+
+StatusCode CreatePositionedCaloCells::finalize() { return GaudiAlgorithm::finalize(); }
diff --git a/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.h b/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.h
new file mode 100644
index 00000000..16b771f0
--- /dev/null
+++ b/RecFCCeeCalorimeter/src/components/CreatePositionedCaloCells.h
@@ -0,0 +1,108 @@
+#ifndef RECFCCEECALORIMETER_CREATEPOSITIONEDCALOCELLS_H
+#define RECFCCEECALORIMETER_CREATEPOSITIONEDCALOCELLS_H
+
+// k4FWCore
+#include "k4FWCore/DataHandle.h"
+#include "k4FWCore/MetaDataHandle.h"
+#include "k4Interface/ICellPositionsTool.h"
+#include "k4Interface/ICalibrateCaloHitsTool.h"
+#include "k4Interface/ICalorimeterTool.h"
+#include "k4Interface/INoiseCaloCellsTool.h"
+#include "k4Interface/ICaloReadCrosstalkMap.h"
+
+// Gaudi
+#include "GaudiAlg/GaudiAlgorithm.h"
+#include "GaudiKernel/ToolHandle.h"
+
+// edm4hep
+#include "edm4hep/CalorimeterHitCollection.h"
+#include "edm4hep/SimCalorimeterHitCollection.h"
+#include "edm4hep/Constants.h"
+
+// DD4hep
+// #include "DD4hep/Detector.h"
+// #include "DD4hep/Volumes.h"
+// #include "TGeoManager.h"
+
+class IGeoSvc;
+
+/** @class CreatePositionedCaloCells
+ *
+ *  Algorithm for creating positioned calorimeter cells from Geant4 hits.
+ *  Based on CreateCaloCells, adding a positioning tool so that output
+ *  cells from the digitisation contain the correct position in 3D space.
+ * 
+ *  Flow of the program:
+ *  1/ Merge Geant4 energy deposits with same cellID
+ *  2/ Emulate cross-talk (if switched on)
+ *  3/ Calibrate to electromagnetic scale (if calibration switched on)
+ *  4/ Add random noise to each cell (if noise switched on)
+ *  5/ Filter cells and remove those with energy below threshold (if noise +
+ *     filtering switched on)
+ *  6/ Add cell positions
+ *
+ *  Tools called:
+ *    - CalibrateCaloHitsTool
+ *    - NoiseCaloCellsTool
+ *    - CaloReadCrosstalkMap
+ *    - CalorimeterTool (for geometry)
+ *    - CellPositionsTool
+ *
+ *  @author Giovanni Marchiori
+ *  @date   2024-07
+ *
+ */
+
+class CreatePositionedCaloCells : public GaudiAlgorithm {
+
+public:
+  CreatePositionedCaloCells(const std::string& name, ISvcLocator* svcLoc);
+
+  StatusCode initialize();
+
+  StatusCode execute();
+
+  StatusCode finalize();
+
+private:
+  /// Handle for tool to get cells positions
+  ToolHandle<ICellPositionsTool> m_cellPositionsTool{"CellPositionsTool", this};
+  /// Handle for the calorimeter cells crosstalk tool
+  ToolHandle<ICaloReadCrosstalkMap> m_crosstalkTool{"ReadCaloCrosstalkMap", this};
+  /// Handle for tool to calibrate Geant4 energy to EM scale tool
+  ToolHandle<ICalibrateCaloHitsTool> m_calibTool{"CalibrateCaloHitsTool", this};
+  /// Handle for the calorimeter cells noise tool
+  ToolHandle<INoiseCaloCellsTool> m_noiseTool{"NoiseCaloCellsFlatTool", this};
+  /// Handle for the geometry tool
+  ToolHandle<ICalorimeterTool> m_geoTool{"TubeLayerPhiEtaCaloTool", this};
+
+  /// Add crosstalk to cells?
+  Gaudi::Property<bool> m_addCrosstalk{this, "addCrosstalk", false, "Add crosstalk effect?"};
+  /// Calibrate to EM scale?
+  Gaudi::Property<bool> m_doCellCalibration{this, "doCellCalibration", true, "Calibrate to EM scale?"};
+  /// Add noise to cells?
+  Gaudi::Property<bool> m_addCellNoise{this, "addCellNoise", true, "Add noise to cells?"};
+  /// Save only cells with energy above threshold?
+  Gaudi::Property<bool> m_filterCellNoise{this, "filterCellNoise", false,
+                                          "Save only cells with energy above threshold?"};
+
+  /// Handle for calo hits (input collection)
+  DataHandle<edm4hep::SimCalorimeterHitCollection> m_hits{"hits", Gaudi::DataHandle::Reader, this};
+  /// Handle for the cellID encoding string of the input collection
+  MetaDataHandle<std::string> m_hitsCellIDEncoding{m_hits, edm4hep::labels::CellIDEncoding, Gaudi::DataHandle::Reader};
+  /// Handle for calo cells (output collection)
+  DataHandle<edm4hep::CalorimeterHitCollection> m_cells{"cells", Gaudi::DataHandle::Writer, this};
+  MetaDataHandle<std::string> m_cellsCellIDEncoding{m_cells, edm4hep::labels::CellIDEncoding, Gaudi::DataHandle::Writer};
+  /// Pointer to the geometry service (is this needed?)
+  ServiceHandle<IGeoSvc> m_geoSvc;
+  /// dd4hep::VolumeManager m_volman; (not needed)
+  /// Maps of cell IDs (corresponding to DD4hep IDs) on final energies to be used for clustering
+  std::unordered_map<uint64_t, double> m_cellsMap;
+  /// Maps of cell IDs (corresponding to DD4hep IDs) on transfer of signals due to crosstalk
+  std::unordered_map<uint64_t, double> m_crosstalkCellsMap;
+
+  /// Cache position vs cellID
+  std::unordered_map<dd4hep::DDSegmentation::CellID, edm4hep::Vector3f> m_positions_cache{};
+};
+
+#endif /* RECFCCEECALORIMETER_CREATEPOSITIONEDCALOCELLS_H */