Macfarlan Smith, a subsidiary of US pharmaceutical group Veranova, has announced plans to close its plant at Newbie, near Annan.
About 65 jobs will be affected by the change, which was decided upon following a review of its manufacturing capacity, relative to customer needs and market trends across the product portfolio.
Veranova chief executive Niek Stapel said “Every effort has been made to avoid proposing the closure of the plant.
“This was a difficult decision to make which in no way reflects the performance or commitment of our colleagues at Annan.”
The proposed closure is subject to statutory consultation requirements under UK law.
MacFarlan Smith took over the south of Scotland site in 2014 after it had been run by a range of companies - originally commissioned by Glaxo in 1980.
Dumfriesshire MP David Mundell and constituency MSP Oliver Mundell have written a joint letter to South of Scotland Enterprise to discuss what options are available to try to avoid or reduce the job losses.
"History shows that the pharmaceutical industry adjusts and contracts as has been shown at this factory over several decades," said Oliver.
"A great deal of private and public investment has been made on this site over a long period and it is important every effort is made to try to restore employment there for the longer term."
David added: "We will be seeking clarity from the company about what has led to this decision and will, of course, contact any agencies that may be able to assist in any way."
In February, Macfarlan Smith completed a $10m expansion of its mid-scale active pharmaceutical ingredient manufacturing capabilities in Edinburgh.
The multi-purpose site should enable growth in the generic opioid analgesic and anti-addiction markets, while also supporting the growing demands of Veranova’s existing customer base.
This expansion is the first of two investments, with the second currently undergoing commissioning. Once completed, these expansions will represent $17m of funding from its US parent.
“This investment will see the Edinburgh facility expand to meet the growing demands that we are witnessing from customers and improve the flexibility of our asset base,” said David Payne, director of Veranova’s Scottish manufacturing operations.
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