GSK backtracks on Memphis divestment plans, invests $2m

By Fiona BARRY contact

- Last updated on GMT

Construction will begin later this year
Construction will begin later this year

Related tags: Gsk, Investment

A GSK facility in Memphis Tennessee which was scheduled to be sold off will now receive $2m to improve its manufacturing infrastructure.

The site, which contract manufactures over-the-counter drugs for other companies, as well as GSK’s own denture cleaning products, employs 300 people. No extra jobs will be added as a result of the investment, which will go towards “infrastructure improvements,​” a spokesperson told us.

Construction will begin later this year and is expected to continue until 2017.

The U-turn on selling the site comes after GSK “evaluate[d] its network of manufacturing facilities to ensure it is efficient and meets the needs of the business,” she added.

GSK announced in 2011 its plans to shut the site at Harbor Avenue, President’s Island. Later that year as part of a shake-up of its Consumer Healthcare division it sold several over-the-counter and consumer brands to Prestige, including BC, Goody’s, Stanback, and Chap-Et, which were made at the Memphis site.

“Consumer Healthcare is a key growth driver for GSK,” CEO Andrew Witty commented in December 2011. “But it is important that we focus this business around product categories, brands and markets where we have most depth and competitive advantage, with the best prospects for strong growth. This divestment is also an example of our commitment to focus on realizing value and enhancing returns to shareholders​.”

GSK's Memphis headcount may be frozen, but the company says it is looking for employees at its plant in North Carolina.

Related news

Follow us

Products

View more

Webinars