A major employer has announced almost 150 people are to lose their jobs as the business prepares to cease trading as a result of rising costs – just months after it cut 100 roles.

The pharmaceutical company, Recipharm AB, announced today a proposal to stop manufacturing at its Queenborough site on Sheppey.

Its shocking announcement comes after jobs were axed by the company in January this year.

A spokesman said: “Today, we regrettably announced to our employees a proposal to cease manufacturing at our Queenborough site.

“We will therefore start consulting on a proposal to close the site by December 31, 2023.

“We are acutely aware that this is a difficult time for our colleagues and we will be supporting them as much as possible over the next few months.”

Recipharm explained to its employees that the difficult decision was made after one of its main customers left the site.

This happened because the product produced on its behalf became a generic medicine.

Recipharm, which took over Aesica Pharmaceuticals in February 2020, said earlier this year it employed 55 people at its site in North Road.

It now employs 148 colleagues at the site, which was formerly Abbott Laboratories.

The spokesman continued: “We have tried to secure the future of the site by reducing costs and bringing new customers.

“Unfortunately, despite our best efforts, we were not successful in securing future business for the site.

“ It is not financially viable for us to continue production at Queenborough...”

“This is compounded by the continued rise in energy and material costs, which means we cannot justify the significant investment required to upgrade the aged infrastructure to attract new customers.

“Following a detailed and thorough evaluation of the site’s operations, we have concluded it is not financially viable for us to continue production at Queenborough.”

The company confirmed it is unlikely to be able to transfer employees to other UK sites.

This is because the work at the Holmes Chapel and King’s Lynn branches is very different to the work carried out on the Island.

Recipharm announced the job cuts earlier this year to try and reduce the costs at Queenborough and adjust its operating model to attract new customers.

“We cannot justify the significant investment required to upgrade the aged infrastructure to attract new customers...”

Despite more than a third of its workforce being let go this decision was not successful.

The Recipharm spokesman added: “We are in contact with our customers and work with them to ensure our proposal to close the site will not impact patients.

“The majority of our site’s activities are finished dose formulation and production and packaging of tablets, capsules and liquids for medicines, on behalf of the pharmaceutical industry.”

Conservative MP for Sheppey and Sittingbourne, Gordon Henderson, explained that the news wasn't “a total shock” but he is eager to help those who will be losing their jobs.

He said: “I was only informed of Recipharm’s decision today, however, I was aware that the company had lost one of its main customers, so their decision was not a total shock.

“I have asked for an urgent meeting with the company, although judging from their statement it is unlikely they will change their mind about closing the site.

“I will be working closely with our local Job Centres to ensure those made redundant have as much help as possible to find new jobs. I will also be working with Swale Borough Council and Kent County Council to try and attract other manufacturing companies to the Island.”

If you’ve been affected by Recipharm’s decision, get in touch by emailing timesguardian@thekmgroup.co.uk.