Consumer healthcare company Haleon is planning to shut down its manufacturing site in Britain by 2026, which will impact 435 jobs, a spokesperson told Reuters.
‘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.
Cost-Cutting Programme
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 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 (€350.9 million) over three years.
Shares in the company were up more than 2% by 10:00 GMT.
In February, the British consumer healthcare giant said that its first-quarter organic revenue growth would slow, citing a tepid cold and flu season and cooling China demand.
Despite price increases, Haleon’s roster of products has largely kept cheaper private-label competition at bay, although the cost-of-living squeeze and competition among painkiller brands are allowing rivals to catch up.
The company announced the appointment of Tate & Lyle executive Dawn Allen as its new chief financial officer, effective 1 November 2024.
