Novartis proposes to exit Grimsby UK site by end of 2020 as part of global manufacturing network transformation
Sep 25, 2018
The proposal is made as part of a global transformation of the Novartis manufacturing network and product portfolio, reflecting today’s changing healthcare needs.
Novartis hopes to secure a future for the site and is working to identify potential partners
395 Novartis employees at the Grimsby site are directly affected by the decision, and additional contactors employed through third parties may also be impacted.
Grimsby, 25th September 2018 – Novartis today announced that it plans to exit its Grimsby manufacturing site by the end of 2020, subject to consultation. The announcement has been made as part of a global transformation of the company’s manufacturing network, including changes announced today to Novartis manufacturing sites in Switzerland, and previously announced adjustments in Japan, the US and other countries.
In a continuation of the manufacturing strategy initiated in 2016, Novartis plans to adapt its manufacturing network further in response to its changing product portfolio; with fewer high volume products, which the Grimsby site has focused on producing, and an increased emphasis on specialised and personalised innovative medicines.
“Novartis has been a part of the Grimsby community for many years so this has been a very difficult decision. The Grimsby site is an effective, well-running operation that is testament to the hard-working and dedicated employees. We will treat every employee with the utmost respect, sensitivity and fairness during this difficult time.” said Haseeb Ahmad, Novartis UK Country President. “This decision has been made alongside broader changes to our business globally, and as a result of the changes in our product portfolio which now focuses on more specialised medicines, reflective of today’s changing healthcare needs. Novartis remains committed to the UK and believes that the UK is a world-leader in life sciences. Today’s announcement is part of a global review of our manufacturing operations and is not linked to the decision of the UK to leave the European Union.”
The proposed exit will be phased until the end of 2020. During this time options including divestment, which could potentially allow the facility to stay open, will be carefully considered by Novartis. Novartis will work closely with the elected staff consultative body to support associates over the period, and will offer enhanced severance packages and outplacement services should closure be implemented.
Novartis provides innovative healthcare solutions that address the evolving needs of patients and societies. Headquartered in Basel, Switzerland, Novartis offers a diversified portfolio to best meet these needs: innovative medicines, cost-saving generic and biosimilar pharmaceuticals and eye care. Novartis has leading positions globally in each of these areas. In 2017, the Group achieved net sales of USD 49.1 billion, while R&D throughout the Group amounted to approximately USD 9.0 billion. Novartis Group companies employ approximately 125,000 full-time-equivalent associates. Novartis products are sold in approximately 155 countries around the world. For more information, please visit http://www.novartis.com.
In the UK, we employ approximately 1,500 people to serve healthcare needs across the whole of the UK, as well as supporting the global operations of Novartis. In 2017 Novartis invested almost £30million in R&D and is a leading sponsor of clinical trials in the UK. For more information, please visit www.novartis.co.uk.