GSK to close Indian API plant and turn to third-party contractors

By Gareth Macdonald

- Last updated on GMT

GSK to close Indian API plant and turn to third-party contractors

Related tags: Manufacturing

GSK tells that decision to close Indian API plant was prompted by rising cost of manufacture and availability of third party contractors.

Last week the UK drug major announced it had halted production at its active pharmaceutical ingredient (API) facility in Thane, Maharashtra and that: “The relevant applications for Closure of the factory are being filed​”

The firm also announced that all employees who previously worked at the site have taken voluntary retirement.

A GSK spokeswoman confirmed the news and told that the cost of updating the facility had been the key factor in the decision to cease production.

"The Thane facility has been operational since 1961 and there has been an increasing cost on manufacturing needing significant capital investment to improve this location.

This capital investment would make the Thane unit unviable because the products that were manufactured at this unit are available at competitive prices from third party manufacturers in India​.”

She added that: "Moreover, in 1961 when the factory opened, Thane was essentially an industrial belt. This has changed with the area becoming highly populated with new mushrooming residential complexes leading to a decline of industrial activities. This has also been a factor in deciding on the closure of the unit​."

The spokeswoman also confirmed that GSK will be contracting API production previously carried out at Thane to third-party manufacturers.

"There were 330 employees and they have accepted a voluntary retirement scheme offered by the company​," she continued, adding that "Betamethasone was manufactured in Thane​."

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