PHARMACEUTICAL giant GlaxoSmithKline (GSK) is to increase its Scottish workforce with a £110 million expansion. Investment will be poured into the company’s plant in Montrose, Angus, which currently has a workforce of 450.
The site makes ingredients for respiratory, HIV/Aids and vaccine products, most of which are then exported. Announced yesterday, the investment is “expected to lead to the creation of new employment opportunities” and support construction jobs.
Meanwhile, expansion will also take place at sites elsewhere in the UK, including Barnard Castle, Durham, and Ware in Hertfordshire in a programme worth £275 million.
Chief executive Andrew Witty 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 was welcomed by government ministers.
Scotland’s Business and Innovation Minister Paul Wheelhouse said: “GSK is a hugely-important contributor to our economy, so this is fantastic news for Montrose, for Scotland and for our life sciences industry.
“Life sciences is a vital industry in Scotland, employing more than 35,000 people and, as we’re seeing, one which is a world leader.
“This success is built on our strong academic base and the cutting-edge research going on across Scotland.”
Meanwhile, Scotland Office Minister Lord Dunlop said: “It is great news that GlaxoSmithKline is boosting investment in Scotland and a real testament to the hard work and skills of the workforce in Montrose.
“Above all, it is a clear vote of confidence in the country’s economy and shows that Scotland and the UK are very much open for business.”
GSK has invested £750m in new UK facilities since 2010, with the latest decision raising this to a total of £1 billion.
While only a fraction of the overall workforce is based in Scotland, the company employs as many as 16,000 people in Britain, 6,000 of whom work in manufacturing.
It had been feared that pharmaceutical companies like GSK could be lost as a result of the Brexit vote, moving their headquarters to another EU member state to avoid incurring additional costs.
Witty, who backed Remain, told the BBC: “We believed a vote to leave would create uncertainty and potentially regulatory change in our industry, which from our perspective was unnecessary.
“But the underlying attractiveness in terms of the UK’s economic strengths and its fiscal environment haven’t changed and that’s why we feel very strongly that this investment makes sense.”
UK Business and Energy Secretary Greg Clark said yesterday’s announcement was testament to the UK’s continued attraction for big business, stating: “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.”
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