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GSK To Invest GBP500 Million In UK, Including New Factory, 1,000 Jobs
Thursday, 22 March 2012
GlaxoSmithKline PLC (GSK.LN) said Thursday that it will invest more
than GBP500 million in manufacturing in the U.K. to boost production of
essential ingredients for its pharmaceutical products and vaccines,
including the construction of a new factory and up to 1,000 jobs.
The new biopharmaceutical manufacturing facility--which will cost
around GBP350 million--will be the first new GSK manufacturing facility
to be built in the U.K. in almost 40 years, according to GSK.
Construction of the facility, which will be located in Ulverston,
Cumbria, is expected to start in 2014-15, subject to portfolio timing
and planning permission. Once construction starts, it is likely to take
at least six years before the plant is fully operational.
The drugmaker said the investment represents "one of the largest
commitments to the U.K. life-sciences sector in recent years," and
follows confirmation by the U.K. government in its budget Wednesday
that it will implement a so-called "patent box" to encourage investment
in research and development and related manufacturing in the U.K., by
introducing a lower rate of corporation tax on profits generated from
U.K.-owned intellectual property.
"The introduction of the patent box has transformed the way in which we
view the U.K. as a location for new investments, ensuring that the
medicines of the future will not only be discovered, but can also
continue to be made here in Britain," GSK CEO Andrew Witty said.
GSK also said it is considering increasing its investment in Ulverston
to GBP700 million and creating more jobs, "depending on continued
improvements in the environment for Innovation in the U.K." The company
will also invest more than GBP100 million in manufacturing in Scotland.
In the GSK statement, Prime Minister David Cameron said the investment
is "excellent news," adding that it is "a major investment that will
create many highly skilled jobs and provide a great boost to the
At 0820 GMT, GSK shares were up 3 pence, or 0.2%, at 1428 pence,
valuing the company at GBP72.01 billion on the London Stock Exchange.
The FTSE 100 index is down 0.2%
Source: DowJones Newswire
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