AstraZeneca could close its Merseyside manufacturing site and move production to the US, amid a funding row with the Government, according to reports.
Chancellor Rachel Reeves plans to slash state funding for the vaccine manufacturing facility in Speke to £40million, down from the £90million promised by the previous government under Rishi Sunak, the Financial Times said on Friday.
The previous offer included £70million to develop the Speke site, as well £20million from the UK Health Security Agency to be spent on research and development.
AstraZeneca employs 8,300 staff across its UK sites
Sunak’s government in March pledged to invest £450million in the FTSE 100 drugmaker to boost R&D and vaccine manufacturing.
A potential cut in support to AstraZeneca mirrors similar cost-cutting efforts from Reeves, who is rumoured to be lining-up a tight-fisted budget in October.
The FT reported that the Anglo-Swedish firm’s top execs had warned the Government it could relocate the site to Philadelphia, where more generous support it provided for industrial projects.
It could also reportedly move manufacturing to India, where AstraZeneca has previously produced vaccines.
AstraZeneca also suggested manufacturing could take place in India, where the company has produced vaccines in the past, according to people briefed on the discussions.
The group employs 8,300 staff across its UK sites.
Its Speke site primarily operates to safeguard public health against seasonal influenza, and has the facilities to research, develop, produce and distribute over 20 million vaccine doses a year for the global market.
An AztraZeneca spokesperson said: ‘We are committed to pursuing the opportunity at Speke and are in constructive discussions with the UK government.
‘We have no idea where the comments in some media come from and they do not seem to be based on facts. As an example, there are no discussions in the US or India.’
A UK Treasury spokesperson said: ‘We are in positive discussions with AstraZeneca to support the delivery of this planned investment in Speke.’