A BOOST in worldwide profits has helped to allay fears of job cuts for more than 1,500 workers at a North-East pharmaceutical factory.

Staff at the GaxoSmithKline site, in Barnard Castle, County Durham, look to be facing a brighter future after the drug company announced profits of £5.3bn.

The announcement follows an uneasy year for staff at the site, which is Teesdale's biggest employer, and will do much to settle the nerves of the rural community surrounding the factory.

The merger last year of pharmaceutical firms Glaxo Wellcome and SmithKline Beecham sparked fears that up to 5,000 jobs could be cut from Glaxo's 23,000 UK workforce.

The County Durham site had just recovered from a similar scare in October 1999, when the company axed 1,700 UK jobs as part of a worldwide reduction of its manufacturing workforce.

However, despite rumours of redundancies, the workforce at Barnard Castle remained relatively unscathed, with management finally revealing plans in December to cut around 50 jobs through a process of voluntary severance and early retirement.

The 63-acre site is just one of Glaxo's 111 manufacturing and supply sites worldwide, but has proved to be one of the most successful, contributing about £800m to its annual profits.

The Teesdale site is a key manufacturer and supplier of medicines to treat illnesses such as migraine and hay fever, with 90 per cent of its turnout exported.

Workers at the site met news of the company's 13 per cent increase in pre-tax profits, coupled with a 12 per cent jump in sales to £18.1bn, with relief yesterday.

A spokeswoman for the Barnard Castle site said news of the profit boost would hopefully be a big reassurance for staff at the factory.

She said: "We are very pleased to see an excellent set of results for our new company GlaxoSmithKline and the Barnard Castle site has played a part in that.

"We are a small cog in a global machine, but the workforce here has proven to be dedicated, and we are pleased to be part of the company's success, which is obviously good news for staff and their families.