The sale of Grimsby’s Novartis site is anticipated to complete in December, a year on from the final batch production at the long-standing pharmaceuticals plant.
Having been given two stays of execution following the shock announcement in September 2018 that it was set to close, the active ingredient manufacturer behind several critical drugs saw final production of a proud continuous record stretching into eight decades end last December. Final sales of stocks held on site were made in January of the Swiss giant’s two key brands it had remained to focus on, with half of the 400-strong workforce retained beyond initial timeframes.
US-based International Process Plants is taking on the South Humber Bank facility under a Humber Industrials Ltd subsidy it launched when the undisclosed deal was agreed back in April 2022.
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The New Jersey business has almost half a century’s experience in redeploying manufacturing assets. It will take possession of 170-acres of assets, featuring three distinct main process manufacturing buildings spanning more than half a million square feet. When the deal was done there was a strong confidence expressed in the potential to redevelop and use the campus, with the unique manufacturing assets and “substantial reaction capacity” underlined. It offers 900 cubic metres of volume, with 17 centrifuges, 26 dryer systems, three milling systems, 10 solvent recovery systems, as well as modern laboratory and office suites.
The detail emerged in the filing of the latest accounts for the business - the last to cover production off Moody Lane, and declared not a going concern. The final year of operations saw turnover increase 10 per cent, up to £68.7 million from £62.4 million, with a £3.8 million profit - more than double that seen in 2021.
A significant drop in plant investment ahead of the closure was credited with the uplift.
Updating in the strategic report accompanying the results, director Jason Brooks said: “In September 2018 proposed plans were announced to exit operations at the Novartis Grimsby manufacturing site by the end of 2020. Subsequently, in May 2020, an extension to the site was announced until approximately the end of 2021, furthermore in June 2021 an extension until Q4 2022 was confirmed. Production ceased in December 2022, with the final sales of remaining inventory in January 2023.
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“The sale is expected to complete in December 2023 before which the site will undertake activities in relation to post manufacturing and chemical free cleaning.”
Novartis Grimsby had closed 2022 with 202 staff, down from 209, with £17 million set aside for restructuring provision. The majority of staff have been made redundant since the last year-end, having been at almost 400 pre-announcement.
When the decision was made to close, the business enjoyed revenues of £158.4 million. 2019 saw it drop to £124.1 million, before a slight lift to £127.5 million in 2021, ahead of the first process plant closure kicking in.
As part of a legacy deal, Novartis also gifted 35 acres of Humber Bank land to North East Lincolnshire Council for use as wetlands. It will serve as a mitigation site for future economic development in the borough.