GSK looks to outsourcing after closing Indian plant
Thane ceases output after 51 years
GlaxoSmithKline has ceased manufacture at its API plant at Thane, near Mumbai in India’s Maharashtra state and filed the relevant closure applications. The company has given “voluntary retirement” to its 330 employees, with the longest serving of them receiving about €30,000. It will now contract out the site’s API manufacturing to outsourced suppliers.
The 20 hectare site had been manufacturing since 1961and GSK said that “significant capital investment” would have been needed to make it competitive, an option that was not realistic when its products, including betamethasone for steroids, are available at competitive prices from third-party manufacturers. Moreover, the site, once in an industrial area, is now being swallowed up by residential development, with very little manufacture there.