Drug maker Novartis to close Grimsby factory as it cuts more than 2,000 jobs
Pharmaceutical giant Novartis will close its Grimsby factory as it sheds more than 2,000 jobs in the UK and Switzerland.
The Grimsby plant will close by the end of 2020, putting 395 jobs at risk not including contractors, although the company said it is open to selling the factory.
The closure comes as Novartis attempts to step away from high volume products like pills, which the Grimsby plant focuses on, and towards specialised medicines.
Novartis chief executive Vas Narasimhan told Reuters: “Our medicines portfolio is evolving from high-volume products to more specialised and more personalised innovative medicines.”
He continued: “We don’t need the same scale we’ve historically needed. That’s the evolution you’re seeing in our portfolio, and that’s being reflected in our manufacturing footprint.”
The company said it remains committed to the UK, and the closure was not linked to Brexit.
Haseeb Ahmad, Novartis UK country president, added: “The Grimsby site is an effective, well-running operation that is testament to the hard-working and dedicated employees.”
The Swiss company will also lose around 1,700 jobs in its home market as it looks to make $1bn (£760,000) in annual savings.
It employs 124,000 people worldwide, but this will fall to under 100,000 by 2022, Narasimhan said as it seeks to boost profit margins.
Drug proceeds have fallen by between one and two per cent in the US due to discounts the company was forced to offer large buyers in the country, Novartis chairman Joerg Reinhardt told NZZ am Sonntag earlier this month.
In June the company announced it would spin off eye care subsidiary Alcon into a standalone company. Alcon committed to Switzerland, saying it would relocate its headquarters to Geneva after the spin off.
The company’s shares had risen by 0.73 per cent by midday.