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GlaxoSmithKline (GSK) and Diosynth BV today announced agreement of the principal terms for the sale of the GSK manufacturing facility at Montrose, Angus, Scotland to Diosynth BV, part of the Akzo Nobel group of companies. The deal is expected to secure around 500 jobs at the site. GSK announced its intention to sell the manufacturing facility at Montrose in June 2001.
Subject to negotiation and signing of sale and supply contracts, transfer of ownership is expected to be completed early in 2003.
Under the terms of the deal, it is intended that Diosynth will continue to manufacture eight pharmaceutical active ingredients currently made at Montrose, which GSK will purchase under contract. Other GSK products will continue to be made at Montrose until such time as their on-going transfer to other GSK sites is completed.
John Elliot, Senior Vice President of 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 in 2003."
"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 world-wide 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 reduction in headcount from the current 700 employees will be achieved largely through voluntary redundancy.
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For company information visit GlaxoSmithKline on the World Wide Web at www.gsk.com
Notes to the Editor:
Diosynth, a business unit of Akzo Nobel, is a science-driven and technology-based manufacturer of complex active pharmaceutical ingredients. The company's expertise is complex organic chemistry, extractions, cell culture, fermentation and chromatographic purification, including HPLC. These technologies are used on an industrial scale to manufacture steroids, synthetic peptides, opiate analogues, carbohydrates, heparin and recombinant proteins, as well as proprietary innovator products. Diosynth's operations are backed by a large development organisation, strong commitment to Good Manufacturing Practice (cGMP) and strict adherence to HSE legislation. Diosynth is headquartered in Oss, the Netherlands, has about 3,100 employees and achieved sales in 2001 of EUR 488 million.
Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2001 totaled EUR 14 billion. The Company currently employs over 67,000 people in more than 80 countries. Financial results for the full year 2002 will be published on February 11, 2003.
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