A world-famous manufacturing firm is to axe nearly half its workforce.

Parker Pen announced to staff today that it was looking to lay off 200 people at its site in Newhaven.

The company says it will hold a 90-day consultation on the restructuring, which could secure the future of its business at the port.

Parker Pen has been based in Newhaven since 1921.

At risk are its less popular product lines which have to be assembled by hand, as opposed to the bigger lines which are put together by machine.

The firm has proposed closing the smaller lines, which would mean the loss of about 110 jobs in manual operations.

The other 90 redundancies would be in the commercial departments including customer services, human resources, IT and finance, which would be moved to the offices of its American parent company Newell Rubbermaid at Fradley Park, Birmingham.

All the redundancies will be compulsory although some employees may be able to transfer to Fradley Park.

The Parker Pen Company director Jim Haggerty, said: "This has been a difficult proposal to make, and is no reflection on the highly-valued work performed by our employees.

"In fact the quality of the manufacturing at the site was key in the decision to maintain production of the most popular lines in the UK.

"I would like to assure all affected employees that they will be treated with utmost respect at all stages of the process.

"The Parker Pen Company will ensure that affected staff receive terms that exceed statutory requirements, plus access to support, as well as an outplacement program to assist in identifying alternative employment."

The most popular products such as Jotter, Vector and the refills, will continue to be made in Newhaven. Duofold might move to France.

Mr Haggerty said: "The Parker Pen Company is transforming into a marketing-led company and investing more in branding and product innovation.

"This proposal will see the Parker Pen Company building on its success in the UK and elsewhere by investing heavily in marketing and innovation to gain access to new markets and spread the Parker Pen brand around the world."

There are no recognised unions at Parker Pen, which has 424 workers at Newhaven. The firm is consulting with the works council, its staff body which represents employees.

In January this year Parker Pen moved its distribution centre from Newhaven to Fradley Park with the loss of 46 jobs. 12 employees who were affected were moved elsewhere within the company while three others retired.

When the company proposed those redundancies last year it said there would be a three-month consultation but the final decision was made just a month later. At the time bosses said the decision would not impact on manufacturing and commercial operations.

MP Norman Baker is due to meet Mr Haggerty tomorrow to discuss the proposals.

Mr Baker said the pair had agreed to work together to find a positive way forward.

He said: "I am concerned to see that Parker Pen is proposing to cut about 200 jobs though it is some comfort that the company says it has decided to continue production of its most high value products at the plant.

"Parker Pen is the most prestigious employer in Newhaven and a cornerstone of the town. I can hope that any job losses do not have an adverse effect on the wider economy of the town. It is a major disappointment."

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