The future of one of the biggest employers in Sussex is more secure after being sold to an American company in a multi-million pound deal.

The Parker Pen factory in Newhaven has been bought by production giant Newell Rubbermaid from Gillette, ending months of speculation that the site was to close.

About 650 staff at the plant were told of the move yesterday. It is not yet known if it will mean job losses or relocation.

Gillette has sold its entire stationery business, comprising Parker Pen, Paper Mate and Waterman, after operating profits fell by 90 per cent between 1997 and 1999.

The agreement is subject to regulatory approval and managers from the Illinois-based company, which makes pens, toys and other office products, will spend the next few months visiting the plant.

There has been a Parker Pen plant in Newhaven since 1952 and generations of several local families work there.

A spokesman for Gillette said: "The sale is subject to approval by various regulators around the world. In the meantime, Newell and ourselves will move ahead in discussing the next course of action with the people affected on the assumption the deal is going ahead.

"It is fair to say Parker Pen and the stationery products group is an excellent fit for Newell. Over the next fewmonths they will be spending a lot of time visiting the stationery product groups."Victoria Gilbert, business communications manager for Newell Rubbermaid, said it was too early to disclose what changes might be made to Parker Pen. She said: "We are very excited. It is an extraordinary opportunity to gain brand names that are so highly regarded around the world."

One Parker Pen employee said most staff were relieved a decision had finally been made.

He said: "Generally, we are optimistic Parker Pen is being sold to somebody who is optimisitic about the company but there are concerns about what it might mean."