This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-17465090
The article has changed 7 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Glaxo invests £500m in UK and builds new factory | Glaxo invests £500m in UK and builds new factory |
| (40 minutes later) | |
| Drugmaker GlaxoSmithKline has said it will invest £500m in manufacturing in the UK, including building a new factory in Ulverston, Cumbria. | Drugmaker GlaxoSmithKline has said it will invest £500m in manufacturing in the UK, including building a new factory in Ulverston, Cumbria. |
| The investments could create up to 1,000 new jobs, Glaxo said. The biopharmaceutical facility will be its first new UK factory for 40 years. | The investments could create up to 1,000 new jobs, Glaxo said. The biopharmaceutical facility will be its first new UK factory for 40 years. |
| Glaxo said it was "one of the largest commitments to the UK life-sciences sector in recent years". | Glaxo said it was "one of the largest commitments to the UK life-sciences sector in recent years". |
| But it will not be up and running until at least 2020. | But it will not be up and running until at least 2020. |
| Glaxo also said it would invest more than £100m in its Irvine and Montrose manufacturing sites in Scotland. | |
| The move is a boost to the UK pharmaceutical industry, which suffered a serious blow when US drugs giant Pfizer announced a year ago that it would close its research and development facility in Sandwich, Kent - with the loss of about 1,500 jobs. | The move is a boost to the UK pharmaceutical industry, which suffered a serious blow when US drugs giant Pfizer announced a year ago that it would close its research and development facility in Sandwich, Kent - with the loss of about 1,500 jobs. |
| 'Transformed' | 'Transformed' |
| Glaxo said it was motivated specifically by Chancellor George Osborne's confirmation in the Budget on Wednesday that the government would introduce a so-called patent box. | Glaxo said it was motivated specifically by Chancellor George Osborne's confirmation in the Budget on Wednesday that the government would introduce a so-called patent box. |
| These allow corporations to pay a lower rate of tax on profits generated from UK-owned intellectual property. | These allow corporations to pay a lower rate of tax on profits generated from UK-owned intellectual property. |
| "The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain," said Glaxo chief executive Sir Andrew Witty. | "The introduction of the patent box has transformed the way in which we view the UK as a location for new investments, ensuring that the medicines of the future will not only be discovered, but can also continue to be made here in Britain," said Glaxo chief executive Sir Andrew Witty. |
| "Consequently, we can confirm that we will build GSK's first new UK factory for almost 40 years." | "Consequently, we can confirm that we will build GSK's first new UK factory for almost 40 years." |
| In an interview with BBC Radio 4's Today programme, Sir Andrew added that the government's continuing moves to cut general corporation tax was another major factor behind his company's decision. | In an interview with BBC Radio 4's Today programme, Sir Andrew added that the government's continuing moves to cut general corporation tax was another major factor behind his company's decision. |
| "What is pivotal for us is that we have been building factories for the last 40 years just not in Britain, but in other countries... due to their lower tax rates," he said. | "What is pivotal for us is that we have been building factories for the last 40 years just not in Britain, but in other countries... due to their lower tax rates," he said. |
| "The combination of the patent box, combined with falling corporation tax has really changed the position [of the UK]." | "The combination of the patent box, combined with falling corporation tax has really changed the position [of the UK]." |
| Innovation boost | |
| The new Ulverston plant will cost about £350m. Glaxo will start building in 2014/2015 and take at least six years to finish it. | The new Ulverston plant will cost about £350m. Glaxo will start building in 2014/2015 and take at least six years to finish it. |
| The current factory at the site employs about 240 people and manufactures materials for antibiotics. | The current factory at the site employs about 240 people and manufactures materials for antibiotics. |
| The drugmaker said it could increase its investment in Ulverston to £700m, depending on "continued improvements in the environment for innovation in the UK". | The drugmaker said it could increase its investment in Ulverston to £700m, depending on "continued improvements in the environment for innovation in the UK". |
| The firm has recently launched a £50m UK venture capital fund focusing on investments in "early-stage healthcare companies and spin outs from academia in the UK". | The firm has recently launched a £50m UK venture capital fund focusing on investments in "early-stage healthcare companies and spin outs from academia in the UK". |
| Glaxo says it employs about 15,000 people in the UK, including almost 6,000 in manufacturing. | Glaxo says it employs about 15,000 people in the UK, including almost 6,000 in manufacturing. |