Global pharmaceutical giant GlaxoSmithKline (GSK) has denied that it plans to shut down its Sydney factory despite recent outsourcing of Victorian jobs to Spain and Poland due to high labour costs.
“We continue to invest in our factory,” said Vincent Cotard, General Manager of Consumer Healthcare Australia.
“Panadol is an icon. I expect this factory to continue to grow.”
Last year GSK outsourced 120 tablet packaging jobs in Melbourne to Spain and Poland, a move which was followed by cutting 22 staff at its Melbourne skin science centre, as the company decided to move the operation to the US.
According to the article on The Age, a spokeswoman for the company said GSK regularly reviewed its business to respond to the changing operating environment and to improve efficiency.
“Despite some [competitive] advantages, the cost of doing business in Australia continues to rise, and government and industry sectors need to work together to mitigate risks and identify ways to ensure Australian industries remain competitive,” she said.
GSK’s 2013 financial report — which was submitted to the corporate regulator on Tuesday — revealed that the company’s revenue has shrunk by less than 1% to $1.4 billion, while profit before tax rose 3% to $42 million.
The consumer division posted a revenue of $336 million, with commercial sales falling 4% and distribution revenue down 17%.