GSK sells Montrose site

GlaxoSmithKline (GSK) has agreed to sell its manufacturing facility at Montrose, Angus, Scotland to Diosynth, part of the Akzo Nobel group of companies. The deal should secure around 500 jobs at the site, with transfer of ownership expected to go ahead early this year.

Under the terms of the deal, it is intended that Diosynth will continue to manufacture eight APIs currently made at Montrose, which GSK will purchase under contract. Other GSK products will be made at Montrose until such time as their on-going transfer to other GSK sites is completed.

John Elliot, senior vp, GSK primary manufacturing, said: 'We believe that the sale of the Montrose site to Diosynth will be an excellent outcome. We are delighted that the terms of the arrangement should secure around 500 jobs for the site and a quality future supply of product for GSK. Employee consultation processes are now underway and we hope to complete the deal and transfer ownership early this year.'

'We are very pleased at the prospect of acquiring a site of the calibre of Montrose,' said Johan Evers, general manager of Diosynth.

'The site's regulatory approvals and the know-how and experience of its workforce make it a particularly attractive addition to our worldwide network of production facilities. We are looking forward to working with Montrose staff to integrate this facility into our business as quickly as possible.'

It is expected that the job losses, from the current 700 employees, will be achieved largely through voluntary redundancy.