A DRUGS firm will spend nearly £40m on a County Durham factory - but separate restructuring plans could affect jobs.

GlaxoSmithKline says it will pump fresh cash into its Barnard Castle plant through to 2020 as it seeks to strengthen asthma, HIV and lupus treatment.

However, the company is also exploring the potential sale of an antibiotics business, which The Northern Echo understands could impact on a small number of posts at the factory.

A spokesman last night said no decision has yet been made on a sale, adding any changes would have a limited effect on Barnard Castle since the base forms only a small part of the antibiotics operation that also includes sites in Cumbria and Italy.

According to the company’s investment plans for its County Durham plant, which are part of a national £140m spending drive, £20m will be used to install an assembly and packing line for a new medicine for severe asthma.

A further £14m will support manufacturing of a HIV medicine currently in development, with another £5m allocated for assembly and packaging facilities to increase capacity to make a lupus treatment.

However, since the commitment is primarily on technology, bosses say they don’t expect to create too many jobs.

Philip Thomson, president for global affairs, said: “We are continuing to invest in science and our core businesses in the UK and we continue to see the UK as an attractive place for the life sciences industry.

“We are working constructively with the Government and others to develop an ambitious plan for the sector as part of the UK’s new industrial strategy.”

Under the terms of its £140m plan, sister factories in Hertfordshire and Scotland will also be strengthened for respiratory and HIV medicine work.

However, the business also revealed plans to sell its Horlicks business in the UK, close the Slough site where the malted drink is made and outsource some work at a factory in Worthing.

Those changes are expected to cost 320 jobs over the next four years.

Mr Thomson said its announcements were not made on the back of the Brexit vote.

Last year, GlaxoSmithKline, which provides work for more than 1,000 people in the region, revealed a £275m expansion that included a commitment to strengthen Barnard Castle.

It has since begun work on an aseptic facility, which will provide a base to make and supply injectable liquids for treatments of HIV and respiratory and auto-immune diseases.

The Northern Echo also previously revealed the plant could support the launch of a fresh remedy for lupus, with bosses confirming they were submitting plans for regulatory approval for a new therapy to ease symptoms such as facial rashes.