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GSK To Invest GBP500 Million In UK, Including New Factory, 1,000 JobsThursday, 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 economy."
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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