GSK continues investment in UK, with £25m API plant expansion

By Dan Stanton

- Last updated on GMT

Related tags Investment

GSK continues investment in UK, with £25m API plant expansion
A £25m (€40.5m) investment at an API facility in Scotland will allow GSK closer control over its manufacturing network efficiency, the firm says.

Once earmarked for divestiture​, GlaxoSmithKline’s active pharmaceutical ingredient (API) facility in Montrose, UK, received a £25m boost Friday in order to support the delivery of its new pipeline. The ingredients for four new products will be manufactured from the site, with 25 new jobs created in the process.

“Producing these ingredients on site allows us to also have closer control of the process to drive greater efficiencies in our manufacturing and supply chain network,”​ GSK spokesman Kalpesh Joshi told

Though he was unable to divulge for which products the APIs would be manufactured, he did say “in terms of therapy areas it includes oncology and respiratory,” ​and would be pharmaceuticals rather than vaccines.

UK Investment

Joshi continued: “The investment really is a demonstration of both our commitment to the UK but more importantly the capabilities of our work force at Montrose.”

The cash injection comes on top of recent investment in the UK following GSK’s confirmation in March 2012​ that it would invest over £500m in new manufacturing capacity.

As part of its pledge, the firm invested £100m in both Montrose and Irvine - also in Scotland - and has since invested a further £40m to bring technology and capability to the UK from overseas.

At the time, the firm also announced it was investing £340m in a new biomanufacturing facility in Ulverston. Montrose will support this new site with the manufacture of some vaccine adjuvants from a new facility, the construction of which began on Friday, Kalpesh said.

Patent Box

These investments were in part triggered by the UK Government’s Patent Box​, which GSK previously told this publication“has transformed the way in which [GSK] views the UK as a location for new investment.”

Since April 1, ​the Patent Box has been in force, encouraging local investment by reducing the corporation tax rate from 23% to 10% on income generated from UK patents.

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