GSK to invest £500million in UK manufacturing

£350m of the company's budget has been earmarked to build a new biopharmaceutical facility at Ulverston in Cumbria, the company's first in almost 40 years. Investments will also be made at the company's two manufacturing sites in Scotland at Montrose and Irvine. GSK said the investments were made by possible by the government's announcement yesterday that it will implement a 'patent box' to encourage investment in R&D and related manufacturing in the UK, by introducing a lower rate of corporation tax on profits generated from UK owned intellectual property. GSK's ceo Sir Andrew Witty (pictured) said: "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. "Consequently, we can confirm that we will build GSK's first new UK factory for almost 40 years and that we will make other substantial capital investments in our British manufacturing base. In total, this will create up to 1,000 new jobs over the lifetime of the projects. We are also actively considering other investments in our UK manufacturing network which would create further jobs and reinforce the UK's international competitiveness and as a world leader in life sciences." Prime Minister David Cameron said the announcement was 'excellent news' for the UK economy. "It shows why we are right to cut business tax and focus on making the UK a dynamic and competitive place that can attract exactly this type of high tech investment," he commented. "We have a world class life sciences industry, and I am determined not just to keep it here in the UK but significantly increase it too. "We cannot be complacent, the industry is changing, and we must change with it. Our innovative life sciences strategy and ground breaking patent box are already making a difference, helping to grow this important industry and ensure the great discoveries of the next decade happen here in British laboratories."