GSK makes £275 million manufacturing investment in "attractive" UK despite Brexit uncertainty
Pharma giant GSK has today announced £275 million of new investments at three of its manufacturing sites in the UK to boost production and support delivery of its latest innovative respiratory and large molecule biological medicines.
The vast majority of these products will be for export to global markets.
The news has been welcomed by the British media, following weeks of headlines forecasting economic woes post-Brexit.
GSK already has a significant manufacturing presence in the UK, with nine sites employing approximately 6,000 people.
The company said it "views the UK as an attractive location for investment in advanced manufacturing due to a number of factors including the skilled workforce, technological and scientific capabilities & infrastructure and a competitive corporate tax system".
This includes the Patent Box, which encourages investment in R&D and related manufacturing in the UK by delivering a lower rate of corporation tax on profits generated from UK-owned intellectual property.
The UK's mainstream media have forecast numerous bleak warnings for business growth since the country voted to leave the EU.
The news will be welcomed by prime minister Theresa May's new government, which is seeking to promote stability and encourage international investment.
Quoted on the BBC website, the UK's business and energy secretary, Greg Clark said: "An investment of this scale is a clear vote of confidence in Britain and underlines our position as a global business leader.
"GSK's recognition of our skilled workforce, world leading scientific capabilities and competitive tax environment is further proof that there really is no place better in Europe to grow a business."
Andrew Witty, CEO, GSK said: ‘Today’s announcement reflects further investment to support our pharmaceutical pipeline and meet growing demand for our innovative portfolio of newly launched products.
"It is testament to our skilled UK workforce and the country’s leading position in life sciences that we are making these investments in advanced manufacturing here.
"From their manufacture in the UK, many of these medicines will be sent to patients around the world.’
The investment announced today is split across three UK sites:
• Barnard Castle in County Durham is one of GSK’s biggest secondary manufacturing sites, employing 1,100 people. The site supplies nearly half a million packs of products per day to 140 global markets. The investment announced today of £92 million will fund the construction of an aseptic sterile facility supporting the manufacture of existing and new biopharmaceutical assets in GSK's pipeline.
• Montrose in Angus in Scotland manufactures active ingredients for respiratory, HIV and vaccine products and employs over 450 staff. This investment of approximately £110 million will provide a new facility for the manufacture of respiratory active ingredients.
• Ware in Hertfordshire, employs 1200 staff, manufacturing innovative respiratory products. Today’s investment of £74 million will support further expansion of the company’s new Ellipta respiratory inhaler through additional manufacturing capacity at the site.
In addition to jobs associated with the construction of the new facilities, GSK said that today’s announcement will support current employment at these three sites and is expected to lead to the creation of new employment opportunities.