Glaxo to cut up to 1,000 jobs as it closes UK manufacturing sites…

Published: 28-Aug-2002


GlaxoSmithKline has said it will close or transfer production from a number of its UK plants. Its site at Speke, near Liverpool will close over the next three years. The site predominantly manufactures CFC-containing asthma inhalers, and demand for this type of inhaler is in decline following progressive implementation of the 1995 Montreal protocol to ban the use of all ozone-depleting substances. This proposal could result in the loss of up to 500 jobs.

The company also proposes to transfer certain operations at its Barnard Castle site in County Durham, which are duplicated elsewhere, to other sites in the global manufacturing network. The site currently employs 1,500 people and will continue to be one of GSK's largest manufacturing sites in the world. A reduction of up to 400 jobs at Barnard Castle over the next three years would occur as a result of these proposed changes.

In addition, GSK proposes to sell its site at Montrose, Angus as many of the operations at this site are duplicated elsewhere in the global manufacturing network. As a result of the review, a combination of positive factors regarding the site has indicated that a proposal should be made to sell it, with a number of GSK products continuing to be manufactured under long-term contract with the site's prospective new owner. Other Montrose products would transfer to alternative manufacturing facilities within the GSK network over the next three years. Montrose, which manufactures bulk active ingredients for around 20 pharmaceutical products, currently employs 720 people.

Tim Tyson, president of global manufacturing & supply at GlaxoSmithKline said, 'These proposals follow a detailed review that examined every aspect of our site network, and implementing them would significantly reshape and improve our manufacturing business. GlaxoSmithKline remains strongly committed to the UK. The company around a quarter of its global workforce and conducts over 40% of its r&d in the UK and it remains a core location for the GSK manufacturing network. We fully recognise the impact these proposals would have on some of our staff and we regret the need for the loss of jobs. We are committed to providing extensive support to affected employees and their communities.'

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