GSK production sites restructured; jobs go

GlaxoSmithKline has announced proposals for the restructuring of its UKpharmaceutical manufacturing operations and for the consumer manufacturing sites acquired with the $1.24 billion purchase of Block Drug of the USA earlier this year (Marketletter January 22). This involves closing some sites in the UK, Ireland and Puerto Rico, and is likely to include many job cuts.

Among the casualties will the UK Speke site, which will be closed over the next three years. GSK says this predominantly makes CFC-containing asthma inhalers, the demand for which is in decline following progressive implementation of the 1995 Montreal Protocol to ban the use of CFC products. This would result in the potential loss of up to 500 jobs. GSK also plans to transfer certain operations at its Barnard Castle site, which now has 1,500 employees, as its operations are duplicated elsewhere, and will sell its Montrose site, which manufactures bulk active ingredients for around 20 pharmaceutical products, and currently employs 720 people.

In addition, GSK proposes to close, over the next 24 months, two former Block consumer health care manufacturing sites, one in Plymouth, UK, and another in Puerto Rico, resulting in the eventual loss of 170 and 275 jobs, respectively. Production at these sites would be transferred to the group's facilities in Maidenhead, UK, and Clifton, USA. It also plans to reduce by 110 the number of staff employed at the former Block/Stafford Miller production site in Dungarvan, Ireland.