Novartis responds to site closure announcement

Novartis responds to site closure announcement

An agreement has been reached for the sale of Novartis today, which is proposed to close its Grimsby operations later this year.

A total of 395 employees are affected by the announcement, with contracting staff associated with the plant could bring that figure to upwards of 500.

The site has been operational for around 70 years, the decision came as part of a “global transformation of the company’s manufacturing network”.

Cynthia Chiaramitara, Novartis Grimsby’s managing director, said: “This is a difficult day for colleagues at our Grimsby site.

“The proposal to exit Grimsby is a result of the ongoing evaluation of the Novartis manufacturing network and is not a reflection of the performance of the site or our employees.

“The Grimsby team has worked hard to supply the Novartis network, its customers, and patients with high-quality medicines and with a high level of commitment for many years.

“We’ve built up an excellent reputation, of which we are extremely proud.

“Our focus now is on our employees and it is our company commitment to ensure they are supported and respected throughout this period.

“All our employees will be treated in a fair and socially responsible way and we will continue to invest in our people during this time.”

The company earlier announced a 2,000 phased job cull and relocation in Switzerland.

It said it is a continuation of the manufacturing strategy initiated in 2016.

It is working 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.”

David Talbot, chief executive of Catch, the cluster organisation that represents the process industries in the Humber, said: “This is truly awful news for the staff and the region. There is the human cost, the loss of 400 jobs, and the loss of the capability for the region. It won’t just have an impact locally, it is a national issue.

“We are working really hard to support industry in this region and to support inward investment and the area as a place to grow. We have now got to come together, collaborate with members, and see what we can do for the staff.”
Novartis was a major backer of the organisation.

“When you look at Catch, Novartis has been there from the very beginning,” Mr. Talbot said.

“They donated huge amounts of equipment for the process plant, they had the vision and saw what Catch could be and how it could support development needs. That’s why they invested heavily in the site. It is just so sad to see what is now happening.”

In Switzerland, more than 1,000 roles will go from its “significant production capacity” across sites in Basel, Schweizerhalle, Stein, and Locarno.

According to reports, 700 management roles are to be relocated from Basel to existing business centres in Ireland, India, Malaysia, Mexico, and Czech Republic.

“We continue our efforts to make Novartis more efficient and agile, and to create a company that innovates sustainably and delivers breakthrough medicines to patients,” said Vas Narasimhan, chief executive of Novartis.

“We know what today’s announcement means for the potentially affected employees and their families. Although the planned changes will take four years, we wanted to communicate early and transparently.

“We will do everything we can to help the potentially affected to overcome this difficult transition.
Brazilian national Cynthia Chiaramitara is the current site head, having taken over from Belgian Anne Wirtz in early 2017.

editor
Jack joined the Gi team in January 2022.

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