The announcement came after staff were told of a reorganisation that included the buyout of Petersfield magnetic card manufacturer Mids and Horsey for 3.4m.

ID Data will move most of its printing operations to one of the new Eastern European countries joining the EU in May this year.

Other parts of the Lewes wrapping and finishing operations will be moved to the companys Corby site.

However, as recently as last week the firm had held a staff briefing suggesting a more positive outlook for the Lewes site, including contracts up to 2010.

GPMU branch officer for the south of England Andrew Harden said: Our members want to know why their jobs are going and why the company didnt invest in them?

ID Data managing director Michael Stewart said the closures were necessary in a bid to grow the company and bring it back into profit.

For the six months to 30 September 2003, ID Data had a turnover of 5.4m, a 48% reduction compared to 2002. It also increased its losses to 1.7m compared to 1.3m in the previous year.

Story by Tony Brown