PHARMACEUTICALS GIANT GlaxoSmithKline (GSK) is looking to move its manufacturing operations off the electricity grid in an effort to contain energy costs. It has called on local and national government to be flexible in working with it on how it does so.

The company has also urged the Government to hold firm to the line on corporation tax but has welcomed the increasing competitiveness of the economy.

GSK chief executive Andrew Witty said that a narrowing cost differential between Ireland, Britain and places like India meant the company was now moving back to Cork and to Scotland manufacturing that had been outsourced a decade or more ago.

In an interview with The Irish Times, Mr Witty said his company's energy bill was likely to increase 20-30 per cent next year, which was a matter of concern.

“That’s a bit of a big deal,” he said, adding that GSK was looking at putting up wind farms at or close to some of its plants.

“We are looking to move more and more of our plants off the energy grid and build our own capacity, which also is green,” Mr Witty said. “These are real opportunities for us to lock in long-term competitiveness for Ireland.

“Because, if we don’t do this and if energy is going to go up 30 per cent every year, then forget it, we’re out of the game.

“In the short run, let us try and keep a grip on rising energy costs, if there is anything that can be done. But if we can’t, then government, local and national, must work with companies like GSK to help us build green energy production and be flexible in how we do that.”

GSK has manufacturing operations in Cork and Dungarvan and employs about 1,500 people in Ireland.

On corporation tax, Mr Witty warned the Government: “Don’t mess with the corporation tax because it is incredibly important, I think, in terms of competitiveness of Ireland.”