The management of the leading pharmaceutical company, GlaxoSmithKline (GSK) Nigeria says it plans to shut down its production facility located in the Agbara Industrial Estate in Ogun state, Nigeria by the Q3 2021.

According to the company, closing the Agbara plant is part of its plans at restructuring its internal operations.

This was stated in its corporate disclosure issued to the Nigerian Stock Exchange, today saying the company’s Board of Directors approved the plan.

GSK stated that it will transition to contract manufacturing. This means that the pharmaceutical company will work with local contract manufacturers for the supply of the company’s drugs and other pharmaceutical products. GSK’s restructuring would support the building of local expertise, transfer of technical knowledge and improve local production capacities in the country, said its management.

It will also enable the company to focus on the commercial aspect of its business, which basically involves “supporting access to GSK’s consumer health products, medicines, and vaccines.”

Following an extensive review of its product supply operation, the Board of Directors has approved a restructuring of GSK’s current operating model to better serve the Nigerian patients and consumers. The restructuring, which will be effective in Q3 2021, involves working with local contract manufacturers for the supply of GSK’s products, where possible. This will support the building of local expertise, transfer of technical knowledge, and improve local production capacities in the country.

However, part of the statement issued to the NSE said: “the identification of a suitable third party local manufacturer will be the subject of another announcement.”

GlaxoSmithKline Nigeria says the restructuring will affect its commitment to global health issues in Nigeria and elsewhere. It will also continue to be listed on the Nigerian Stock Exchange. Its Agbara plant will remain functional until the third quarter of 2021, by which time a suitable local contract manufacturer would have been found.

SOURCE: https://brandspurng.com/2019/04/02/glaxosmithkline-nigeria-is-shutting-down-its-agbara-plant-the-company-explains-why/

As I know they are major drugs producers in Nigeria. I find it very interesting that they are closing their production facilities. I would really like to know what is the real reason behind such decision