The contract, worth around £25 million, will see the UK engineering firm work with GSK to design, build and install the API facility which, on completion, will produce active ingredients for three of GSK’s new medicines for the management of respiratory conditions such as asthma and Chronic Obstructive Pulmonary Disease (COPD). GSK’s existing Montrose operations currently cater for over 20 million patients every day.

A team of 40 Doosan Babcock engineers are already at work on the Montrose project, having completed the initial feed study undertaken by Doosan Babcock in 2014. GSK plans to recruit a further 25 employees at the facility once it is complete in summer 2016.

The announcement represents yet another major venture in Scotland by Doosan Babcock. In 2014 the company made a £6m investment in a new Process Engineering Centre at its Renfrew site in Western Scotland, which included a £1.5m grant from Scottish Enterprise.

Doosan Babcock’s recent investment in Scotland has already seen the creation of 25 skilled jobs in Renfrew and has paved the way for the development of an engineering skills ‘centre of excellence’ to support customers in the pharmaceutical and process industries.

Andrew Hunt, chief executive officer, Doosan Babcock, said this is “a milestone contract” for the firm.

He added: “We are proud to be working with GSK on a project that will offer a major boost to the local economy, bring jobs to the region, and ultimately provide essential healthcare products for millions of people.”