Jobs at Sussex engineering company Ricardo are to be axed - days after the announcement of a multi-million pound order.

Ricardo Consulting Engineers in Shoreham is to make between 20 and 30 people redundant by the end of January.

It blames rising prices and increased competition from Europe.

The firm is part of Ricardo plc, based at Shoreham Airport, which undertakes research and development for the world's major vehicle manufacturers.

The company has offices in the United States and Germany and employs a total of 1,500 people.

Last week, Ricardo Specialist Vehicles, a subsidiary of the parent company, was part of a consortium that won a Ministry of Defence contract to build a fleet of tank transporters.

But the £290 million deal, the UK's biggest ever heavy haulage contract, has not proved enough to save jobs elsewhere in the business.

Personnel director Malcolm Greenslade said: "One contract will not make a major difference.

"We have reluctantly reached the conclusion this is long-term problem. There are just too many test bases like ours elsewhere in Europe.

"In order to recover our profitability, we have to reduce costs and, unfortunately, this means cutting jobs."

Staff have been fully informed of the reasons for the decision and consultations are continuing with the works council about how the redundancies should proceed.

Efforts will be made to help employees find alternative positions and staff who lost their jobs will receive full severance pay.