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      GlaxoSmithKline Plans to Build Biopharm Factory in the UK

      GlaxoSmithKline, a major pharmaceutical company, has announced to build its first new manufacturing plant in the UK in nearly 40 years. Sir Andrew Witty, the company's chief executive, said that this decision comes in the wake of the UK government’s measures in the budget to introduce a “patent box” legislation, which offers a lower rate of corporation tax on patent profits generated from research and development. He added that the company, encouraged by such tax policy, will invest £500 million toward the setup of its new manufacturing plant in the UK.

      The proposed biopharmaceutical factory is to be built at Ulverston, Cumbria, in the North East of England at the cost of £350 million, which could create up to 1,000 new jobs. Based on planning consents, the construction of the factory is expected to begin in 2014/15. Besides, GlaxoSmithKline plans to upgrade two of its manufacturing sites at Montrose and Irvine in Scotland, at the cost of £100 million. As part of the expansion, Montrose facility will manufacture main ingredients of the company’s respiratory medications, and it will also be GSK’s first UK site to get involved in the production of vaccines. In order to meet the increasing demands, antibiotics production will be ramped up at its factory in Irvine.

      According to GlaxoSmithKline, the new investments will boost the UK life-sciences and construction sectors. GSK’s CEO also said that the new investment plans would insure not only the discovery of medicines of the future but also the continuity of their production in Britain.

       

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