GSK announces investment in Scotland

Firm's expansion "testament to world class workforce."

November 22, 2013 - Global healthcare company GlaxoSmithKline (GSK) is to invest £25 million to expand its operations in Montrose to support the delivery of its new pipeline of medicines.

In addition to the £2.7 million already ring fenced by the council, Scottish Enterprise is also backing the expansion by awarding Angus Council £1.5 million to improve access into the GSK site and the area around it.

GSK is investing in new state of the art facilities and equipment to bring production of the ingredients for four new pharmaceutical products to Montrose.

The investment will create an additional 25 new jobs for process technicians, engineers and chemists – bringing the total GSK workforce in Scotland to more than 750. An additional fifty contractors will be employed during the construction phase.

This investment comes on top of GSK's pledge in 2012 to invest £100 million in Montrose and the company's other Scottish manufacturing site in Irvine.

In recent years, the company has also invested approximately £40 million in bringing technology and capability to Scotland that was previously undertaken overseas.

Currently, Montrose produces active ingredients for a number of medicines in important disease areas such as respiratory and HIV/AIDS while the Irvine site produces antibiotics. These ingredients and products are exported globally and the sites are an integral part of GSK's overall manufacturing network.

Finance Secretary John Swinney said: "GSK's investment is testament to the skill of the Scottish workforce and illustrates the confidence international companies have in Scotland as a country to invest in.

"Montrose has the infrastructure, experience and skills to deliver success for GSK and the company's commitment to Scotland is further positive news for financial enterprise and the wider Scottish economy.

"We acknowledge the support of both Angus Council and Scottish Enterprise in developing the proposals to support the infrastructure of the surrounding South Montrose area.

"The Scottish Government, Scottish Development International and Scottish Enterprise will continue to do all we can to make Scotland an attractive location for inward investment."

Roger Connor, President, Global Manufacturing and Supply for GSK, said the announcement is a vote of confidence in the GSK Montrose team: "Our teams in Montrose and Irvine are world class and have worked hard to bring new facilities to the two sites. This investment shows how highly we value our teams in Scotland.

"Our people here in Montrose manufacture the primary ingredients that then go forward to be put in inhalers, pills, capsules and injections for patients across the globe. Montrose will work alongside our sister site in Singapore to meet international demand for some of the world's most important medicines.

"Ours is a fast-moving and competitive environment and the investment should be seen as a vote of confidence in the skills, standards and drive of the people who work here."

Angus Council leader, Cllr Iain Gaul said: "This investment is of immense importance to the town of Montrose and the wider economy of Angus. I'd like to commend GSK as it demonstrates their faith in the existing workforce and their commitment to the town to invest in the plant and attract new high-end jobs to the site.

"The investment from Scottish Enterprise will support our work to improve the roads in the area and further enhance the port's reputation as a world-class location for business.

"We believe this project will help attract further inward investment to the area and support the existing companies to take forward investment plans."

Jim McFarlane, executive director at Scottish Enterprise said: "We have a long-standing account management relationship with GSK. We've been involved in some of the key strategic projects that have helped the company reach its current level of success.

"Last year we were involved in discussions about how it might expand further, and it became apparent GSK felt the lack of strong travel and transport infrastructure was an obstacle to future investment on the site.

"We were aware that Angus Council had a plan to address the issue, but didn't have all the funding in place to implement it. We therefore decided to support the council's project, allowing it to go ahead almost immediately and, as a result, allowing GSK to continue investing in the Montrose facility.

"This significant infrastructure initiative is good news for the council and for GSK; and it's good news for the entire area. It will open up opportunities for businesses already located in Montrose, and encourage others to consider it as the location for their company, creating a better business community, more jobs and a stronger local economy as a result."

GSK is the largest pharmaceutical company in Scotland in terms of employment and investment. The company contributes approximately £80 million annually to the Scottish economy.

Scottish Enterprise (SE) and Angus Council:

SE has provided £1.5 million to Angus Council in support of its "Unlocking South Montrose" Master Plan, a two-phase, £4.2 million road infrastructure project that will realign an existing route, add a new section of road and carry out various public realm works. Further information on the project from Angus Council press office. The £1.5 million contribution is supporting Phase 2 by securing £2.7 million from the council and allowing works to begin.

Scottish Enterprise and GSK:

To date GSK has received over £20 million of direct financial support from SE.

·         £1.46M R&D support (2011): for process improvement, specifically for one new product, three existing products where the cost of goods needed to be reduced plus one further product. The project is currently in its final year (3 year programme).

·         Building 150 feasibility study: an £80K feasibility study to look at the feasibility and capacity that could be achieved by re-commissioning Building 150.

·         £88K in support of capacity building for Zanamivir (2009)

·         £15,775 SE grant support for Training Needs Analysis (2010)

·         £27,333 grant for Management Development Programme (2011 – 2013). Training for 48 Level 2 managers, focusing on opportunities for product, process and internal communications improvement.

Scottish Development International (SDI) is a partnership between the Scottish Government, Scottish Enterprise and Highlands and Islands Enterprise, which works to attract inward investment to Scotland and helps Scottish based companies to trade overseas.