GSK to Close Australian Plant
GlaxoSmithKline Consumer Healthcare, a GlaxoSmithKline business unit, announced that it will close its manufacturing facility at Ermington, Australia, a suburb northwest of Syndey, in 2020. The company said that decision was made after an evaluation of the manufacturing site revealed that it would not be able to remain competitive in the long term. The manufacturing site produced over-the-counter healthcare products. The closure will be conducted in phases over the next four years as production is gradually transferred to a combination of other GSK manufacturing sites within the company’s network and through third-party contract manufacturers, GSK said.
The closure will affect approximately 223 jobs in Ermington when manufacturing ceases in four years. During the next four years, GSK will work with affected employees on support arrangements and provide clarity about the closure process. This decision may result in office relocation for the Consumer Healthcare commercial employees based in Ermington in due course, GSK said.
GSK said it does not anticipate any impact on the availability/supply of products that are manufactured at Ermington and will work to ensure continuity of supply. The decision to close the Ermington manufacturing site does not affect other parts of the GSK business in Australia. The company’s other Australian manufacturing site in Boronia, Victoria, where respiratory products are manufactured, is not affected by this decision, the company said.
GSK said that it it has recently upgraded the Ermington manufacturing facility. but that “significant ongoing investment would be required over the longer term due to the age of the facility,” said the company in a statement. “This means GSK will not be able to maintain a competitive cost of manufacturing at the Ermington site in the future. GSK thoroughly evaluated a number of alternative options for the Ermington site before reaching a final decision to close the site. Unfortunately, none of the other alternatives were realistic or sustainable options.”