A £50 million investment in GlaxoSmithKline’s Montrose site has been hailed as a vote of confidence in Scottish manufacturing.
The pharmaceutical giant’s announcement is expected to create around 60 new jobs and safeguard the positions of 250 existing staff.
A further £50 million will be spent at the firm’s factory in Irvine and £350 million at its base in Ulverton, Cumbria, which beat Montrose and two other bidders to secure a large-scale new biopharm plant.
First Minister Alex Salmond said GSK’s announcement demonstrated a commitment to working in Scotland.
”Both plants will have considerable investment in renewable energy, which will help secure their future,” he said. ”The quality and skills of the local workforces in Montrose and Irvine have played an important part in the company’s decision to expand their operations.
”This new investment reinforces Scotland’s global reputation for research excellence and the competitiveness of our business environment.”
Scottish Finance Secretary John Swinney visited the Montrose site to see how the new cash would be spent, and said: “I am acutely aware of the concern there was in this plant in 2003/04 about the future of the plant.
“We now look today at various investments made in the future of GSK in Montrose, in bringing new processes here to the facility and new investment that will create additional employment.”
Alan Mitchell, of Dundee and Angus Chamber of Commerce, said the investment was just reward for the hard work staff had put in at the site.
He said: ”Following on as it does from the announcement late last year of substantial investment in the Michelin factory in Dundee and the success of so many other manufacturing businesses in this region, it demonstrates that manufacturing in Dundee and Angus is alive and well and able to hold its own against the best in the world.”
Angus MSP Nigel Don said the jobs boost would have significant benefit to the local economy.
He added: ”The investment confirms that GSK’s roots in this area are strong and I have no doubt everyone in Montrose will welcome this vote of confidence in the workforce and the quality of life in this area.”
Angus Council finance convener, Montrose councillor Mark Salmond, said the funding decision was ”excellent news” for the future of the factory and its workforce.
”To have been one of the four sites in the running for the biopharm project shows the quality of the Montrose factory and the people who work there,” he said.
”This investment can only be good news for the town of Montrose and the wider Angus community and will secure the existing staffing levels and I have no doubt it will create extra jobs and boost the Montrose economy.”
The Cobden Street plant has played a pivotal role in the life of local SNP councillor Paul Valentine and he said the investment announcement was the latest stage in a remarkable turnaround for the facility.
Less than a decade ago a major question mark hung over the future of Montrose within the GSK portfolio and, after almost 20 years as an employee there, Mr Valentine was amongst those who opted to take a voluntary severance package.
”At that time I think we were given two years until the site closed, so to see it as healthy as it is and new work coming is excellent for Montrose and Angus,” he said.
”While we would have liked the major investment (of the biopharm plant) to come to Montrose, I think any investment that brings jobs and prosperity to the area has got to be welcomed.”
Montrose councillor Sandy West said the announcement was largely positive, but had to be set against the disappointment of missing out on the major new factory.
”This is a major funding boost and hopefully it will bring more jobs into the town,” he said. ”I am disappointed that the big contract has gone down to Cumbria, but we shouldn’t lose sight that this is a substantial investment.”
Angus MP Mike Weir said: ”GSK continues to be a major employer in Angus and I hope that the new investment will lead to new high value jobs within our local economy.”
News of the announcement was relayed to the full Angus Council meeting in Forfar on Thursday, where it was warmly welcomed.
Angus council leader Bob Myles said: ”This cannot be anything but great news for the people of Montrose and Angus. It shows the very high regard the plant and the workforce are held in by the management of GSK in the award of this extra investment.”