Eli Lilly closes UK factory

Eli Lilly has reported that it is to close its manufacturing site on Kingsclere Road, Basingstoke, in the UK. The company originally informed its employees of its intention of closing the plant in June of this year.

Lilly carried out employee consultation regarding the plans, with the board deciding in October that the plant would close unless a buyer could be found for it. With no pharmaceutical company stepping forward, Lilly this week confirmed that the site would be closed.

This Is Hampshire reports that 100 of the 445 employees currently at the site are due for retirement, while some others will be moved to alternate sites, though those who do not will be made redundant.

Andrew Hotchkiss, managing director of Lilly UK, told the newspaper that the company would be “sad” to lose this staff, with the company having a clearly defined strategy, robust pharmaceuticals portfolio and strong research and development pipeline.

“However,” he said, “As the environment for the pharmaceutical industry becomes more challenging, we must take difficult business decisions to allow us to realise our vision and long-term growth potential”.

Earlier this month, Lilly reported a 6.25 per cent increase in its quarterly dividend, increasing the annual indicated rate to $1.70 (0.86 pounds) per share.