Staff at Interlink South in Commerce Way on the Lancing Business Park are furious at parent company Kingspan's announcement which will see the loss of 58 jobs.

The plant makes metal construction equipment and is closing by next Friday (August 29).

But Mark Scott, production manager at Interlink, said both staff and customers are dismayed at Kingspan's decision because they claim the site is still profitable.

He said: "Morale is at rock bottom. No one really wants to do any work. We have tried to ask Kingspan to reconsider and do a cost cutting exercise to reduce overheads rather than shut it down.

"They are going to lose a lot of skilled workers some of whom have worked here for years."

Mr Scott said firms in the area were worried at the loss of trade.

Eric Burden, co-owner of The Spray Shop on the Lancing Business Park, which paints fabricated materials relies on Interlink for half its annual turnover.

He said: "It is massive customer to lose. We have 12 employees and I don't know if we can hold on to all of them."

Kingspan bought Interlink for £6million in 1996. The Dublin-based group is moving all its southern operations to Yorkshire, blaming the downturn in the construction industry.

A spokeswoman for Kingspan said: "The slowdown in the construction sector has impacted upon everyone, including Kingspan.

"Key volumes have been significantly reduced and year on year input costs are currently extremely high both in terms of steel and other resources.

"Having reviewed our fabrication business, we have come to the conclusion that it is no longer cost effective to maintain our operation at Lancing.

"Following consultation with the workforce over the proposal, it is with regret that we confirm the closure of these sites as of August 29.

"The fabrication operations and capacity to service customers will be managed by Kingspan's manufacturing sites in Holywell, North Wales and Sherburn, North Yorkshire."