GSK to close 115-year-old vaccine plant in Dresden

09:47

By: Azzat Manal

GSK to close 115-year-old vaccine plant in Dresden

Dresden is facing the loss of one of its historic industrial sites after pharmaceutical giant GlaxoSmithKline (GSK) announced plans to close its vaccine manufacturing facility in the German city by summer 2028.

The decision puts around 650 jobs at risk and marks a major setback for a site with more than a century of history in Germany’s vaccine industry. The facility dates back to 1911, when entrepreneur Karl August Lingner, who built his fortune through the Odol mouthwash brand, established what was then known as the Saxon Serum Factory.

The plant later became part of GSK’s international manufacturing network and developed into an important production centre for vaccines. Its planned closure has therefore raised concerns not only about employment but also about the future of pharmaceutical manufacturing capacity in Germany.

GSK said the decision was driven by weaker global demand for vaccines and excess production capacity. The company plans to transfer influenza vaccine production from Dresden to its facility in Sainte-Foy, Canada, as part of a broader effort to adapt its manufacturing network to changing market conditions.

The pharmaceutical group said it would work closely with the Dresden works council and employees during the transition and introduce support measures aimed at reducing the impact of the closure. GSK acknowledged the significance of the decision for its workforce, describing the announcement as particularly difficult for employees who have worked at the site for years.

Trade union IGBCE has strongly opposed the closure, warning that it would result in the loss of highly skilled industrial jobs and weaken Germany’s pharmaceutical expertise. The union argues that the site represents valuable knowledge and production capabilities that would be difficult to rebuild once lost.

Peter Miesbach, chairman of the Dresden works council, said employees were determined to defend their jobs and would seek alternatives to the proposed closure.

Saxony’s Economy Minister Dirk Panter also described the announcement as unexpected. He pointed to the state’s growing importance as one of Germany’s most dynamic biotechnology regions and said the regional government intended to engage with GSK’s management and the affected employees.

The proposed shutdown has also attracted attention at the European level. European politician Oliver Schenk said he intended to raise the issue with EU institutions, arguing that Europe’s ambitions for pharmaceutical sovereignty and supply security should be accompanied by efforts to preserve existing production capacity and expertise.

The Dresden facility has produced influenza and hepatitis vaccines and, according to previous company data, has had the capacity to manufacture around two million vaccine doses per week. GSK has nevertheless stressed that Germany remains an important market and a significant location within its global operations, adding that it would ensure continued access to vaccines for patients.

The dispute comes amid wider concerns about the resilience of Europe’s pharmaceutical supply chains. The COVID-19 pandemic exposed the risks associated with dependence on a limited number of manufacturing locations for medicines and medical products, prompting European governments to call for greater domestic production capacity.

For Saxony, the planned closure could have broader consequences for the industrial labour market. IGBCE estimates that the decision would bring the number of jobs threatened or lost in the sector across the state to around 4,250.

The union has called on GSK to suspend the closure plans, provide greater transparency about the economic reasoning behind the decision and enter serious negotiations over possible alternatives. It has also urged the federal and Saxon governments to convene a joint summit on the future of the Dresden site.

The fate of the factory is now likely to become part of a wider debate over how Germany and the European Union can balance corporate restructuring with the need to maintain strategic pharmaceutical manufacturing capabilities. For Dresden, the closure would not only affect hundreds of employees but also bring an end to a 115-year chapter in the city’s vaccine production history.