The Herald reports on GSK conducting due dilligence on its four sites, two in Scotland (Montrose and Irvine) and two in north of England following the GSK announcement it would build its first new factory in the UK in 30 years – to be located at one of its two sites in either Scotland or the north of England, part of a £500m investment programme creating 1000 jobs. The decision is expected in first half 2012.

Between Irvine and Montrose for GSK, the annual cost of manufacture is £160m, prodoucing 12 active ingredients  for 20 products with global sales in excess of £9bn. Site contribution to the Scottish economy is put at some  £80m a year between salary and local supplier costs.

GSK’s manufacturing in Scotland currently employs around 600 people. Latest developments at GSK’s operations in Scotland are part of a strategy that will bring back home to the UK the company’s overseas process manufacturing in the next few years.

GSK CEO Andrew Witty (right) also said developments were part of the company’s recent shift to increase its focus on drugs and consumer healthcare products for emerging markets.

“A few years ago, the Montrose plant was close to shutting down,” he said, “But the workforce applied great brain power to cost and process efficiency, and now we are actually bringing work back from India and Montrose is where it is going.”

Montrose will manufacture  the chemical compound, a steroid used in creams to relieve skin irritation from eczema, called betamethasone, and expand its staff content by  30 people.


Witty is reported saying: “Payroll is not the issue. Actually, our payroll in Montrose is double the payroll in India. What has made the difference is the (250) workforce and its extraordinary emphasis on efficiency. The Patent Box also helped.”

A Patent Box policy reducing the rate of corporation tax on income derived from patents to 10% – will be introduced in the UK in 2013 and been confirmed by Chancellor of the Exchequer George Osborne last year.

“We are looking for the highest quality with the most cost-effective process and in this case the Montrose plant fits the bill,” Mr Witty said handing out the accolade that “this is also a workforce that has rolled with the punches.

"They outmanoeuvred the threat of closure, and the headcount has gone up in the good times and...down in tougher times. That’s also true of the Irvine plant."