PFIZER has announced plans to cut 400 jobs at its plant in Sandwich in a shock blow to the East Kent economy.

The losses are part of a global review of capacity following its takeover of Pharmacia and a Pfizer spokesperson confirmed the company had "undergone a review of manufacturing".

It has also been confirmed that Pfizer is actively seeking a buyer for its manufacturing plant in Morpeth, Northumberland, where 571 people are currently employed.

The job losses will have a dramatic effect on the Thanet economy.

Thanet South MP Steve Ladyman described the redundancies as "a shock to the community" on a "sad day" while district council leader Sandy Ezekial said it was "very bad news".

Dr Ladyman, who will be working closely with the company during the restructuring programme, said: "We knew that jobs were at risk when Pfizer took over Pharmacia in 2003 and that there would be a worldwide review of capacity.

"However, the announcement was sudden and will impact greatly on families around the area. They must be extremely distressed."

Cllr Ezekial said: "Pfizer is rationalising its manufacturing operations and jobs losses are to be expected during this period. However it is not good for the area when a major employer announces redundancies suddenly."

A statement by Pfizer said: "Since the Pharmacia acquisition in 2003, Pfizer has been conducting an exhaustive review of its global manufacturing requirements.

"This has identified the need to consolidate activities at a smaller number of sites, in order to reduce excess capacity across the manufacturing network. As a result, Pfizer announces its intention to rationalise UK manufacturing activity.

"In Sandwich, 400 jobs will be lost over the next several years, and during this period, Pfizer will make every effort to retrain and re-deploy colleagues wherever possible.

"A manufacturing presence will be maintained on the site and Pfizer also remains fully committed to its extensive research and development programme at Sandwich."

Company spokesman Vanessa Davies added: "Sandwich is our European research and development headquarters. Since 1998 we have invested £1bn in the UK and most of that is at Sandwich."

Tony Maddaluna, vice-president of Pfizer global manufacturing, said: "These decisions are in no way a reflection of the hard work, loyalty and commitment of our Sandwich and Morpeth manufacturing teams.

"Rather, they are a direct result of the fact-based evaluation process carried out since the Pharmacia acquisition, which has highlighted that the capacity provided by these operations is not required."

KM-fm's Jamie Stephens spoke to Dr Ladyman after the news broke...