BAE Systems acquires former GSK Ulverston site in major manufacturing shift

BAE Systems, the blue-chip defence group and FTSE 100 constituent, has secured acquisition of the former GlaxoSmithKline manufacturing plant in Ulverston, Cumbria. This deal ends a protracted period of uncertainty about the future use of the 96-acre site, following GSK’s decision to wind down production at the ageing pharmaceutical facility over the summer.

The Ulverston plant, which once stood as one of the world’s largest biopharmaceutical factories and a major private sector employer in the Lake District region, traces its roots back over 75 years, having originally produced penicillin after the Second World War. In recent decades, however, its fortunes waned, with the workforce shrinking from more than 2000 to just 130 by 2021.

GSK’s strategic refocus accelerated in 2021 with the sale of its cephalosporin antibiotics business to Sandoz for up to 500 million US dollars. Production consequently relocated to Austria, setting off a heated local debate about jobs, skills, and the sovereignty of UK life sciences manufacturing. Despite pledges made as recently as 2012 to invest up to 500 million pounds in expanding the site, plans were abandoned within five years, curtailing the prospect of a new wave of high-skill employment in the region.

Local MPs and stakeholders expressed concern for apprenticeships and the local supply chain, and held GSK to account for its commitments to Ulverston. Dame Emma Walmsley, GSK’s chief executive and native of neighbouring Barrow-in-Furness, was criticised for the reversal, as it seemed to run counter to government ambitions for sustained regional investment in the wake of Brexit.

While prime minister Boris Johnson intervened with promises to back Lakes BioScience, a new venture by former site executives, the initiative ultimately failed to secure sufficient investment and momentum. GSK instead shifted its investments towards its plants in Ware, Hertfordshire and Montrose, Scotland, whilst committing more than 1 million pounds for future careers and 2 million pounds for community projects in Ulverston as part of its site exit.

BAE Systems is formulating a broad development strategy for the Ulverston facility, which is expected to complement its existing site in nearby Barrow-in-Furness, where Britain’s latest generation of nuclear submarines are constructed. Full details of job creation and the financial aspects remain under wraps, but phased ownership transfers are scheduled to continue through to the end of next year, by which time the site will be fully decommissioned. Notably, adjoining sports grounds and community amenities will be preserved for local residents.

The acquisition signals a new phase for the Ulverston site as British manufacturing recalibrates for future industrial and defence needs, casting a hopeful light on the eventual reinvigoration of this historic Cumbrian landmark.