The latest development at the factory saved from closure in April 2006 is a result of lower than expected demand for drugs which are manufactured there and for drugs which were set to be manufactured there in the near future.

The news comes in the wake of a global £1.5billion restructuring of the business announced by the pharmaceutical giant in October last year, which is aiming to make some £700 million in efficiency savings per year by 2010, £300 million of which coming from the manufacture and supply operations.

But GSK has said that sale or closure of the site is not an expected outcome of the review and is not being considered.

The news was broken to staff at the site on Tuesday afternoon. Last week they were informed that a number of contractors at the site are being paid off on Friday.

A spokesperson for GSK said: "What's been announced to staff today is that there is going to be a review of the site's business activities. This review is expected to take a month.

"This review has come as a result of two things. In a number of Montrose products, the revised forecasts for demand is not as high as we forecast originally.

"Because we're in a dynamic industry, the forecasts change and that's part of the normal business process.

"The second thing is that back in October, GSK announced that it was embarking on a £1.5 billion restructuring of its organisation, with a view to saving £700 million per annum by 2010.

"It is possible that some redundancies will be required. This review will not look at site closure or sale."

Unaffected by the review will be the £35 million investment in the site, which will still progress as normal.

In a presentation to staff on Tuesday, site director Alan Catterall said the news should not be treated as a reflection on the staff, who he praised for meeting every milestone and target set for them in the last 18 months.

The MSP for Angus, Andrew Welsh, expressed concern over the news.
He said: "I have received assurances from GSK management that 'it is unlikely that Montrose will close or any sale will be proposed' which will be a relief to everyone given the crucial importance of GSK to the local economy.

"While unfortunately there could be some redundancies involved it is essential to secure the maximum continuance of this complex in Montrose and Angus.

"I will be contacting GSK directly to seek further information during the review process and will do whatever I can to encourage a positive outcome."