AstraZeneca to close R&D facility at Alderley Park

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AstraZeneca announced today that research and development will no longer be carried out at the Alderley Park site, which today houses around 2,900 employees.

As a result of these major changes, 1,600 research and development roles will be relocated from Alderley Park by 2016, with the significant majority going to a new global R&D centre and corporate headquarters in Cambridge. The remainder will relocate to the company's nearby Macclesfield facility or sites overseas.

AstraZeneca have stated that at least 700 non-R&D roles are expected to remain at Alderley Park.

As part of the restructuring AstraZeneca said it will invest around £330 million to establish a purpose-built site in Cambridge where they will consolidate their UK research and development activities along with some other corporate and global functions.

The proposed changes are estimated to result in an overall headcount reduction of about 700 in the UK over the 2013-2016 period. It is unclear at this stage exactly how much of that reduction will come from staff at Alderley Park.

Approximately 300 further roles may be relocated outside the UK. Today, AstraZeneca employs around 6,700 people in the UK.

Pascal Soriot, Chief Executive Officer, AstraZeneca said: "I recognise that our plans will have a significant impact on many of our people at our sites in Cheshire and London and the surrounding communities. We are fully committed to treating all our employees with respect and fairness as we navigate this period of change.

"AstraZeneca remains strongly committed to the North West of England. We are keen to work with central and local government, as well as the business community in the region, to ensure that all practical solutions for the future of Alderley Park are considered in order to support the local economy over the long term."

Unite, Britain's biggest union, has accused AstraZeneca of creating a skills crisis in the north west by draining the region of highly skilled research and development jobs in the middle of an economic downturn.

Unite national officer Linda McCulloch said: "AstraZeneca's decision to relocate over a thousand jobs to Cambridge is a massive blow for the north west. The company is creating a skills crisis for the local economy.

"After 40 years of success and hundreds of millions of pounds of investment, we are at a loss as to why AstraZeneca is now pulling out of Alderley Park. The region desperately needs this highly skilled workforce - they make a huge contribution to the economy and to the community.

"Staff will be shell-shocked by this announcement. Skilled scientific jobs are in short supply and there are many families based around Alderley Park with deep roots in the community. It is going to be a real struggle to relocate families hundreds of miles away to Cambridge.

"Unite will be meeting with the company to demand that AstraZeneca rethinks this decision and looks at alternatives to relocation. The union will be making it a priority to contact local MPs to urge them to intervene. The government has a clear duty to act and encourage AstraZeneca to continue to have a strong presence in the north west. In the middle of a economic crisis this government should do everything possible to stop AstraZeneca from turning its back on the north west."

Councillor Michael Jones, Leader Cheshire East Council, said today: "UK Plc should support AstraZeneca through its restructuring and Cheshire East Council will work hard to ensure the future sustainability of their major centres in Alderley Park and Hurdsfield, Macclesfield.

"We will now need to accelerate our emerging plans for a new Bio Science Park and Incubator, as part of drive to foster growth of the Life Science sector in the region and maximise the wider potential of the site for future development.

"I am very pleased to say that George Osborne, Chancellor and local constituency MP for Tatton, has personally fought very hard to retain a strong position for AZ in the UK and I believe without his direct involvement the announcements today would have meant a complete closure of Alderley Park.

"I believe that with the collective efforts of the North West scientific community, life sciences business, Cheshire East Council and Government, that we can build a sustainable and vibrant future for our science sector.

"We have all the ingredients – we just need the backing and initial up-front investment from Government through a Task Force led by the Minister for Universities and Science David Willetts MP and AstraZeneca.

"We must accept, adapt and respond to these types of announcements and look to the future and the potential opportunities it may create."

George Osborne MP added "While I recognise AstraZeneca's commitment to science in the UK and the investment they are making in Macclesfield and Cambridge, this is obviously very difficult news for people directly affected by the decisions around Alderley Park.

"I have worked hard with AstraZeneca over the last few weeks to make sure that a substantial number of jobs are kept there and will work closely with Cheshire East Council and the government task force we are creating to bring new companies to the site. We are all determined that Alderley Park shall remain a success story and at the heart of our local community."

In February 2012 AstraZeneca announced 7,300 job cuts by the end of 2014, which is expected to deliver annual savings of $1.6 billion by the end of 2014.

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Comments

Here's what readers have had to say so far. Why not add your thoughts below.

Craig Wilson
Monday 18th March 2013 at 7:57 pm
A bit of a disaster for the local area :-(
Ricky Lee
Tuesday 19th March 2013 at 3:11 am
Not sure if the decision was linked to the Beagle Demo, This will have a major after shock to all the local businesses.
Adrian Barber
Tuesday 19th March 2013 at 7:05 am
I think it's disgusting that they've had basically a free hand to build whatever they want in an area of immense beauty and now they're just going to leave behind a derelict city where a historic farm belonging to Lord Derby once stood.
Andrew Muncaster
Tuesday 19th March 2013 at 9:03 am
Lets hope compromise can be found. The effect on local businesses must be considered...lucky old Cambridge.
Craig Wilson
Tuesday 19th March 2013 at 12:06 pm
Andrew, the compromise has already happened, they actually wanted to shut down the entire site, ie the 700 that are staying is the compromise.. Don't think the 700 will be there for long. :-(
Steve Savage
Tuesday 19th March 2013 at 12:53 pm
I've heard that they are looking to rebrand the site as a BioScience park and encourage science based start ups to locate there.
Alan R Davies
Tuesday 19th March 2013 at 1:34 pm
So AstraZeneca have secured a £5M grant from the Regional Growth Fund and a £1M loan from Cheshire East towards establishing a Bioscience Park at Alderley Park. It's good to know that they are grateful. There certainly won't be any shortage of available accommodation now. I trust that the Planning Committee will take note of that in considering any new applications to build additional accommodation.
Simon Dewar
Tuesday 19th March 2013 at 1:37 pm
An old farm, vs research into life saving drugs!!?? An old farm vs 2900 employees into the local economy!!?? An old farm vs new businesses that will replace AZ thus leading to valuable income into the local economy!!??
Roy Sower
Tuesday 19th March 2013 at 3:27 pm
The decision by the new CEO of AZ is a shock to the local system, but its par for the course in the pharms industry - Pfizer in Sandwich closed its R&D site in 2011. AZ is to keep 700 IT jobs at Alderley Park and to help in finding 'spinouts' at the site - much as Pfizer are doing in Sandwich.

I guess that its going to be very tough to find new industries to fill the gap with AZ's departure but we'll have to trust CEC and the government to help.

I can't believe that the Beagles demo would have led AZ's board to take this decision.
Adrian Barber
Tuesday 19th March 2013 at 4:15 pm
My point was not that the site shouldn't have existed, it was that they had a free hand to build huge office blocks and multi-storey car parks in stunning surroundings and then just up and leave when times get tough. I know it's never going to be considered in modern cut-throat business but come on, where are the ethics in their actions? They've only just stopped building there and now the tax payer has to fund finding another use for this 'city'.
Adrian Barber
Tuesday 19th March 2013 at 4:21 pm
Such a huge loss of jobs is always hard and I wish those affected well as I'm sure many may have to move to find work.
Sarah Lane
Tuesday 19th March 2013 at 4:25 pm
Let's just give a thought to all those that will be losing their jobs. I know of many families that this news will hit like a hammer blow. My thoughts are with them. Deverstating news for them.
Steve Savage
Wednesday 20th March 2013 at 12:25 pm
All to easy to say it shouldn't have existed now we know they are pulling out. I prefer to accept the positive impact that the site has had over the last few decades with regards to providing employment and the huge financial input locally. Let's move on and try to make something positive come out of this situation.
Adrian Barber
Wednesday 20th March 2013 at 1:16 pm
Steve, my positive point was that councils and the government should take heed with this type of scenario and see if they can help focus developments in more appropriate sites thus protecting the nation from corporate greed eating up the landscape. Maybe I'm an idealist but I'd hope that AZ's next 'super-site' won't just be built in the greenbelt around Cambridge... It's just another perspective, not a "no to progress"; that could not be further from my thoughts because I have many friends and family members that have made their livelihood there.

Big companies flashing their cash can get a lot of what they want, but can it bit done with consideration for the countryside whilst still delivering sustainability and progress? I'd suggest so.