GlaxoSmithKline has operating establishments in some 70 countries. The geographical spread of the Group’s activities, and the headquarters’ location in each country, are indicated in the list of Group companies. GlaxoSmithKline conducts research and development at more than 20 sites and manufactures product at more than 100 sites in 41 countries. Refer to Research and development – Pharmaceuticals and Manufacture and supply.

GlaxoSmithKline has invested nearly £4 billion in its property, with a carrying value in the financial statements of £3 billion, with a further £3.5 billion at carrying value invested in plant and equipment. In 2000 GlaxoSmithKline invested £1 billion in new and renewal property, plant and equipment. Property is mainly held freehold. New investment is financed from existing Group liquid resources. The Group had at 31st December 2000 contractual commitments for future expenditure of some £300 million and operating lease commitments in 2001 of approximately £130 million.

GlaxoSmithKline’s business is science-based, technology-intensive and highly regulated by governmental authorities. GlaxoSmithKline allocates significant financial resources to the renewal and maintenance of its property and plant to minimise risks of interruption of production and to achieve compliance with regulatory standards. The research and development and manufacture of active pharmaceutical ingredients require the use of chemicals and hazardous materials. GlaxoSmithKline observes stringent procedures and uses specialist skills to manage environmental risks from these activities. Environmental issues, sometimes dating from operations now modified or discontinued, are referenced under Environment, health and safety and in Note 31 to the Financial statements.

GlaxoSmithKline believes that its facilities are adequate for its current needs. The integration of Glaxo Wellcome and SmithKline Beecham operations in 2001 and subsequently is likely to involve the rationalisation, and disposal, of a number of sites and properties.