GlaxoSmithKline to boost Montrose plant but cut 320 jobs elsewhere in UK in massive overhaul

Pharmaceutical giant GlaxoSmithKline (GSK) has announced plans to invest a share of £ 140million in its manufacturing site in Montrose.

The factory – already at the center of a £ 110million expansion plan – is one of the beneficiaries of a massive upheaval in GSK’s UK business.

The other sites to benefit from the money are Ware in Hertfordshire and Barnard Castle in County Durham.

This is in addition to the £ 275million worth of investments announced last year and the more than £ 1.2 billion allocated to manufacturing in the UK since 2012, GSK said.

GSK Global Affairs Chairman Philip Thomson said: “We continue to invest in science and our core business in the UK and we continue to see the UK as an attractive place for the science industry. of life.

“We are working constructively with the government and others to develop an ambitious plan for the sector as part of the UK’s new industrial strategy.”

However, GSK’s overhaul will also result in the loss of 320 jobs and the shutdown of its Slough plant.

The company has confirmed plans to sell its Horlicks malt beverage brand in the UK and shut down the associated manufacturing site in Slough, while outsourcing part of the antibiotics manufacturing business at its Worthing plant. .

It also backtracked on plans to invest in a biopharmaceutical facility in Ulverston, Cumbria, saying it “no longer needs additional capacity”, adding that a strategic review of its cephalosporin antibiotics division could result in a sale of the business and its related manufacture. plants.

The proposals will see 320 permanent GSK employees lose their jobs over the next four years.

GSK currently employs around 17,000 people in the UK, of which 5,000 are involved in its manufacturing operations.

Roger Connor, president of GSK’s global manufacturing and supply division, said he understands the move will create uncertainty for staff, but pointed to additional plans to expand manufacturing of its respiratory drugs and anti-HIV.

“We have a substantial industrial presence in the UK and continue to support the network with a new investment of over £ 140million over the next three years.

“At the same time, we have had to make decisions which we know will create uncertainty for some of our employees.

“We will do all we can to support them throughout this process.”

The company stressed that none of the announcements were the result of the UK’s decision to leave the EU.

GSK is also looking to sell the MaxiNutrition brand in the UK and divest itself from “certain other smaller non-essential nutrition brands”.

However, the company explained that the sale of its Horlicks business in Britain would not affect the brand in India or Southeast Asia, which currently account for the “vast majority” of the brand’s global revenue.

Comments are closed.