GlaxoSmithKline to invest GBP275m in UK manufacturing sites

(ShareCast News) - Amid growing concerns about how Brexit might affect investment in the UK, pharmaceuticals giant GlaxoSmithKline has announced plans to spend £275m on three of its UK manufacturing sites to boost production and support delivery of its latest respiratory and large molecule biological medicines.The company, which has a significant manufacturing presence in the UK, said it was an "attractive location" for investment in advanced manufacturing due to a number of factors including the skilled workforce, technological and scientific capabilities and infrastructure and a competitive corporate tax system.Later on Wednesday, GSK released interim results showing strong earnings growth in the second quarter that led management to expect full year earnings will hit the upper end of targets, around 11-12% at constant exchange rates, with a potential further boost from currency rates.On the expansion of manufacturing capabilities, chief executive officer Andrew Witty said: "Today's announcement reflects further investment to support our pharmaceutical pipeline and meet growing demand for our innovative portfolio of newly launched products."It is testament to our skilled UK workforce and the country's leading position in life sciences that we are making these investments in advanced manufacturing here. From their manufacture in the UK, many of these medicines will be sent to patients around the world."The investment - which is expected to lead to the creation of new employment opportunities - will see Glaxo plough £92m into Barnard Castle in Country Durham, which is its biggest secondary manufacturing site, supplying nearly half a million packs of products per day to 140 global markets.In addition, around £110m will be invested in Montrose in Scotland, which manufactures ingredients for respiratory, HIV and vaccine products.Finally, its site in Ware, Hertfordshire will benefit from a £74m investment to support further expansion of the company's new Ellipta respiratory inhaler through additional manufacturing capacity.At 1011 BST, Glaxo shares were flat at 1,667.50p.