GSK invests $794 million in U.K., creates jobs
GlaxoSmithKline will invest more than $794 million in the U.K. across its manufacturing sites and a new facility in Cumbria to increase production of key active ingredients for its pharmaceutical products and vaccines, creating 1,000 new jobs.
The investments follow the government’s decision to implement a ‘patent box’ to encourage investment in R&D and related manufacturing in the U.K. The patent box will introduce 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,” said Sir Andrew Witty, CEO, GSK. “Consequently, we can confirm that we will build GSK’s first new U.K. factory [in] almost 40 years.”
GSK has selected Ulverston in Cumbria, U.K., as the location for the new GSK manufacturing facility, which will receive $555 million of the total investment. Construction is expected to being in 2014/15 and will take roughly six years to complete.
Another $159 million will be invested in the company’s two manufacturing sites in Scotland at Montrose and Irvine. The Montrose site will be upgraded to produce aluminium adjuvants, high-tech agents used in the manufacture of vaccines to help stimulate the body’s immune system. At Irvine, GSK will increase production capacity for antibiotics, reflecting growing demand for these medicines in emerging markets. The company will also invest in sustainable energy production and environmentally friendly manufacturing technologies at both sites.
In addition, GSK has launched an $80 million U.K. Venture Capital Fund. The fund will be focused on investments in early stage healthcare companies and spin outs from academia in the U.K. which are pursuing innovative, breakthrough science.
Prime Minister David Cameron said, “This is excellent news, a major investment that will create many highly skilled jobs and provide a great boost to the economy. It shows why we are right to cut business tax and focus on making the U.K. a dynamic and competitive place that can attract exactly this type of high tech investment.”