MORE than 100 people at a Droitwich firm are facing a bleak summer after hearing they will lose their jobs in October.

This morning, office equipment manufacturers Acco announced they intend to close their site at Berry Hill Industrial Estate, where they have been for 25 years, and consolidate their manufacturing base at their site in Peterborough, Cambridgeshire.

One hundred and thirty jobs are to go in all, but the firm hopes to be able to relocate up to 45 people to Peterborough, and a further 15 people to its site in Aylesbury, Buckinghamshire.

Nevertheless, 70 employees will be out of work when the site closes in October.

Workers were told of the decision yesterday, and talks with employees regarding redundancy payments were due to begin today.

Most of them work on the shop floor making the firm's range of Rexel Business Machines, which includes shredders, laminators and binding machines.

Simon Wells, human resources director, said the firm would be offering employees "enhanced" redundancy terms, as well as help with finding future employment, including an on-site Job Shop that local employers looking for staff can phone or visit.

"The loss of employment in the Droitwich area is, of course, regretted," said Mr Wells.

"We are finalising details today, but we will be offering employees an amount over the statutory redundancy requirement. And no one will be going for another 90 days."

Mr Wells said the sector was very competitive, and the firm was up against cheaper imports.

"One of our biggest problems is imports from the Far East, where they can make the products more cheaply due to lower labour rates.

"The strong rate of sterling doesn't help either, as we export about 25 per cent of our products across the board."

The company plans to buy in some finished products from Asia.

"The combined decision to consolidate manufacturing at Peterborough and buy in some products will, we hope, provide us with a more competitive business," said Mr Wells.