AstraZeneca to Realign Supply Chain to Improve Productivity and Move Closer to Customers

AstraZeneca has today announced proposed changes to its global manufacturing and supply chain operations as part of its ongoing programme to improve efficiency across the business. The introduction of new manufacturing processes has brought further opportunities to drive efficiencies across the global supply chain. The company will also establish a regional packing strategy, to improve its ability to respond to customer requirements, while equipping the business for emerging markets growth.

AstraZeneca will exit three sites, in Porriño in Spain, Destelbergen in Belgium and Umeå in Sweden; there will be roles affected at its facilities in Macclesfield in the UK and Södertälje in Sweden. These moves will result in a net reduction across the business of 1400 positions by 2013, subject to local consultation.

AstraZeneca is further investing in its Wuxi plant in China to support the company’s continuing growth in the Asia Pacific markets. Part of this investment will provide additional packing and formulation capabilities and enable Wuxi to become the packing centre for Asia Pacific, complementing those in Europe and Latin America.

The company’s guidance to investors on restructuring costs remains unchanged for 2008. A full update will be provided at the full year results announcement on 29 January 2009.

“These moves are a continuation of AstraZeneca’s programme to improve the organisation’s productivity and efficiency,” said David Smith, Executive Vice President Operations, AstraZeneca. “It moves the supply process closer to the customer, responding to their requirements and improving the security of the product wherever it is bought.

“I realise these changes are difficult for our affected employees, with whom we will be consulting in the coming months. We believe these changes are necessary for the long-term strength of the business.”

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20 November 2008

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About AstraZeneca

AstraZeneca is a major international healthcare business engaged in research, development, manufacturing and marketing of prescription pharmaceuticals and supplier for healthcare services. AstraZeneca is one of the world's leading pharmaceutical companies with healthcare sales of US $29.55 billion and is a leader in gastrointestinal, cardiovascular, neuroscience, respiratory, oncology and infection product sales. AstraZeneca is listed in the Dow Jones Sustainability Index (Global) as well as the FTSE4Good Index. For more Information visit www.astrazeneca.com

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