Pharmaceuticals titan GlaxoSmithKline has confirmed that it will invest half a billion pounds in the UK to build a new factory and create 1,000 new jobs, following yesterday's Budget.
"This isexcellent news, a major investment that will create many highly skilled jobs and provide a great boost to the economy," said Prime Minister David Cameron.
In an announcement on the company's website, the group said it will invest more than £500m across its manufacturing sites in the UK to increase production of key active ingredients for its pharmaceutical products and vaccines.
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Ulverston, Cumbria, has been selected as the location for Glaxo's first new manufacturing facility to be built in the UK for nearly 40 years. A further investment will also be made at its existing site in Scotland at Montrose and Irvine.
"In total, it is anticipated these investments will create up to 1,000 new jobs over the lifetime of the projects and will also benefit the wider construction industry and the many companies which supply GSK with services and facilities in the UK," the company said.
Glaxo notes that the announcement comes a day after the Chancellor of the Exchequer, George Osborne, said he would implement a 'patent box' to encourage investment in research and development and related manufacturing, by introducing a lower rate of corporation tax on profits generated from UK-owned intellectual property.
"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," said Chief Executive Officer Andrew Witty.
"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," Cameron added.
Shares rose 0.09% to 1,426.27p in early trading on Thursday.
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