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Sensodyne-maker Haleon to shut UK manufacturing site, with more than 400 jobs hit

Published 30/04/2024, 11:14
© Reuters. FILE PHOTO: The company logo for Haleon and the trading info is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022.  REUTERS/Brendan McDermid/File Photo
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By Eva Mathews

(Reuters) - Consumer healthcare company Haleon (LON:HLN) is planning to shut down its manufacturing site in Britain by 2026, which will impact 435 jobs, a spokesperson told Reuters on Tuesday.

"Following a strategic review of our global manufacturing capabilities, we have determined that our Maidenhead site is no longer a viable option for the manufacture of our products," the spokesperson said.

The Maidenhead site, located in Berkshire, England produces some of the FTSE 100 group's most popular oral health brands such as Sensodyne toothpaste and Parodontax mouthwash.

The making of toothpastes will be transferred to Haleon's hub in Slovakia, while mouthwash production will be moved to a third party contract manufacturer, details of which have yet to be announced.

Haleon has been focused on cutting its huge debt pile by selling brands such as Lamisil and Chapstick and keeping a lid on costs, after being spun-off from drugmaker GSK (LON:GSK) in 2022.

The move to shut down the site is part of the company's cost-cutting programme announced in March 2023, aimed at saving 300 million pounds ($376.47 million) over three years.

© Reuters. FILE PHOTO: The company logo for Haleon and the trading info is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022.  REUTERS/Brendan McDermid/File Photo

Shares in the company were up more than 2% by 1000 GMT.

($1 = 0.7969 pounds)

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