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Released October 22, 2018 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--GlaxoSmithKline (NYSE:GSK) (GSK) (Brentford, England) is planning to cut almost 200 jobs at its antibiotics manufacturing plant in Ulverston, U.K., as the company continues with its drive to cut costs.
After a one-year review, the company said that it has decided to retain its cephalosporin antibiotics business there but overhaul it to make it more efficient. In a statement released to the press, the company stated: "Following a review of our cephalosporin antibiotics business announced last year, we have decided to retain this business, which continues to grow strongly, and redesign the supply chain to improve efficiency and reliability." The company stressed that its decision had nothing to do with Brexit. "Neither the review nor the steps we are setting out today are related to the U.K.'s decision to leave the European Union."
At Ulverston most of the cephalosporins business involves making tablets, but the company will be phasing out its active pharmaceutical ingredients (API) production for sterile injections. In 2012, GSK had announced that Ulverston was in line for a £350 million ($458 million) investment to build a new large-molecule plant. It would have been the first new GSK production facility to be built in the U.K. in almost 40 years and would have created 500 jobs. However, last year the new chief executive officer, Emma Walmsley, canned the project and revealed plans to sell GSK's cephalosporin antibiotics business and the related production plants. Products include the Zinnat/Ceftin, Zinacef and Fortum brands.
The news comes less than two months after GSK announced the planned closure of the Stiefel Laboratories skincare plant in western Ireland with the loss 165 jobs. For additional information, see August 29, 2018, article - GlaxoSmithKline Shutting Irish Skincare Plant.
Staff cuts will begin next June and be completed by early 2020. Speaking to the press, Phil Wilson, site director at GSK Ulverston, said that part of the business was no longer cost-effective and confirmed that 191 of the 347 people employed would be let go. "I want to thank my staff for managing their day-to-day role during this period of uncertainty. I will give all my support to my staff across the site, and this is a big blow for the community. It is our 70th year here and we have done fantastic things. We will continue to do great things in the future. As part of the change, we will look across the whole of GSK to see if there are opportunities for staff who will be made redundant. We are committed that anyone who does leave will have the best opportunities to find employment."
Wilson said that the tablet manufacturing business is growing by up 4% a year and will see increased investment. In July this year, GSK announced a major restructuring programme to cut £400 million ($528 million) in annual costs to boost spending on research. The cuts will come via what it called "supply chain optimisation" and reducing its administrative costs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
After a one-year review, the company said that it has decided to retain its cephalosporin antibiotics business there but overhaul it to make it more efficient. In a statement released to the press, the company stated: "Following a review of our cephalosporin antibiotics business announced last year, we have decided to retain this business, which continues to grow strongly, and redesign the supply chain to improve efficiency and reliability." The company stressed that its decision had nothing to do with Brexit. "Neither the review nor the steps we are setting out today are related to the U.K.'s decision to leave the European Union."
At Ulverston most of the cephalosporins business involves making tablets, but the company will be phasing out its active pharmaceutical ingredients (API) production for sterile injections. In 2012, GSK had announced that Ulverston was in line for a £350 million ($458 million) investment to build a new large-molecule plant. It would have been the first new GSK production facility to be built in the U.K. in almost 40 years and would have created 500 jobs. However, last year the new chief executive officer, Emma Walmsley, canned the project and revealed plans to sell GSK's cephalosporin antibiotics business and the related production plants. Products include the Zinnat/Ceftin, Zinacef and Fortum brands.
The news comes less than two months after GSK announced the planned closure of the Stiefel Laboratories skincare plant in western Ireland with the loss 165 jobs. For additional information, see August 29, 2018, article - GlaxoSmithKline Shutting Irish Skincare Plant.
Staff cuts will begin next June and be completed by early 2020. Speaking to the press, Phil Wilson, site director at GSK Ulverston, said that part of the business was no longer cost-effective and confirmed that 191 of the 347 people employed would be let go. "I want to thank my staff for managing their day-to-day role during this period of uncertainty. I will give all my support to my staff across the site, and this is a big blow for the community. It is our 70th year here and we have done fantastic things. We will continue to do great things in the future. As part of the change, we will look across the whole of GSK to see if there are opportunities for staff who will be made redundant. We are committed that anyone who does leave will have the best opportunities to find employment."
Wilson said that the tablet manufacturing business is growing by up 4% a year and will see increased investment. In July this year, GSK announced a major restructuring programme to cut £400 million ($528 million) in annual costs to boost spending on research. The cuts will come via what it called "supply chain optimisation" and reducing its administrative costs.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
