GlaxoSmithKline surging ahead with investment plans

The largest pharmaceutical producer on the domestic market GlaxoSmithKline (GSK) intends to invest over zl. 130 million in Poland by 2004. Of this amount zl. 46.3 million will be earmarked for the modernization and expansion of the Poznan-based pharmaceutical manufacturer Polfa GSK. In 1998 GSK purchased an 80% stake of Polfa GSK for zl. 220 million. The concern's total investments in Poland are estimated at zl. 445.7 million. Last year's revenues amounted to zl. 885.7 million. "This year we expect revenues and net profit to increase by 5%," said GSK management board member Jacek Barlinski. Before the decision of the Health Ministry to change the list of reimbursed medicines, GSK expected that revenue and net profit would increase by 20%. At the same time the company is planning to reduce costs by 15%. "This will be carried out by rationalizing production as well changes in the logistics division," said Barlinski. GSK is not planning any redundancies this year, last year it reduced employment in the Poznan plant by laying off 300 employees. Currently GSK employs 1,700 workers. (Puls Biznesu, p. 3; Prawo i Gospodarka, p. 7) A.Z.