TWO hundred jobs are to at the GlaxoSmithKline factory in Barnard Castle, it was announced today.

Employees at the site were briefed on proposals that would reduce the number of staff over the next 12 to 18 months, as part of a programme to improve productivity and efficiency.

The proposals will now be the subject of consultations with employee representatives.

Bosses said the reorganisation is aimed at creating a sustainable future for the site, which supplies pharmaceutical products on a global basis.

Site Director Roger Connor said "We very much regret the need for these proposed job losses but they are essential to remain competitive within the global pharmaceutical market.

"It is a difficult proposal for the company to make and I want to emphasise that it is not a reflection on the quality of our staff or on our commitment to the Barnard Castle site.

"Indeed, we will continue to invest in the site with 17m planned for 2009 in addition to the 48m invested in the last two years. These investments and the proposed restructuring announced today will put us in the best possible position to ensure a sustainable future for the site."

The proposed job losses would result from efficiencies across the whole site with the company seeking voluntary redundancies and early retirement whilst ensuring critical skills are retained. MP Helen Goodman said: "Obviously, the news that GSK is consulting on a significant cut in jobs at the Barnard Castle plant is very disappointing for all those affected, and I do not underestimate the impact on employees and their families.

"At this time it is important that we do everything possible to enable people to find new jobs or even start their own small businesses. So, to support people facing redundancy, the Chancellor announced 1.3bn extra money in the Pre-Budget Report to help people who want to change or upgrade their skills to do so.

"The Rapid Response Service will be co-ordinated by our RDA - One North East - and the aim will be to look at each persons needs individually. I will keep in close touch over the coming months to ensure everything that can be done is done."