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News B u s in e s s

GSK invests £500m in UK and builds new factory GlaxoSmithKline (GSK), Britain’s biggest drugmaker, has confirmed plans to invest more than £500 million in manufacturing in the UK and it selected a north of England location for a previously announced biotech plant. The investments could create up to 1,000 new jobs, GSK said. The biopharmaceutical facility in Ulverston will be its first new UK factory for 40 years. It will cost £350 million, with construction expected to start in 2014 or 2015. The firm had looked at four possible sites in England and Scotland. GSK said it was “one of the largest commitments to the UK life-sciences sector in recent years”. But it will not be up and running until at least 2020. GSK will also invest more than £100 million in its two manufacturing sites in Scotland and the company is considering further investment at Ulverston which could double the total spend there to some £700 million. Any further investment will depend on “continued improvements in the environment for innovation”, GSK said - a clear sign it intends to continue to put pressure on the government to make Britain a favourable place to do business.

JLR and Chery announce China JV Jaguar Land Rover (JLR) and Chery Automobile have agreed a joint venture (JV) that should pave the way for production of Jaguar and Land Rover cars in China. A new, jointly owned company, will be formed, with a view to establishing a research and development facility, the pair said in a joint statement. As well as manufacturing Jaguar and Land Rover models, the new company will also aim to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China. Further details of the agreement were not disclosed. 4

E u ro z on e c ri s i s

Greece ratifies multibillion bailout The Greek parliament has formally ratified a second eurozone bailout scheme worth up to 130 billion euros to save it from defaulting on its national debts. The text was approved by 213 socialist and conservative parliamentary deputies and opposed by just 79 members from the communist left and far right. The result was in little doubt given the large majority, which the transitional government of caretaker Prime Minister Lucas Papademos can command. The ratification came after Greece received a first payout of 7.5 billion euros under its second international bailout. Greece received 5.9 billion euros from the eurozone and 1.6 billion euros from the International Monetary Fund. The eurozone approved the new rescue programme following a debt swap with private creditors earlier this month that wiped some 100 billion euros off Greece’s debt.

Jaguar Land Rover to create 1,000 new jobs at UK plant Car manufacturer Jaguar Land Rover has confirmed it is adding 1,000 new jobs to its Halewood factory. The company said the new jobs would support “significant demand” for some models and will take the site’s workforce to 4,500. The carmaker said it needed more workers in order to meet strong demand for its Range Rover Evoque and its Freelander 2. “We are moving Halewood to three shifts and 24-hour operation to meet increased global demand,” said JLR’s human resources director, Des Thurlby.

European Outlook / Issue 2  

European Outlook / Issue 2