More than 40 jobs are to be axed when a packaging firm wraps up its operations in St Leonards.

But 40 more posts could be on the way in Eastbourne if a restaurant is given planning permission.

Consultation ended yesterday on the future of the two Marcor and Sussex factories on the Castleham Industrial Estate in St Leonards.

Workers were told manufacture would formally stop later this month or early in December.

The businesses, owned by DS Smith Packaging, have suffered heavy losses during the past year, with further losses predicted in the months ahead.

Bosses said this put them in an "unsustainable position".

They said the problems were caused by a shrinking local workload coupled with increased market competition.

Meanwhile, Pizza Hut has applied to Eastbourne Borough Council to build a 114-seater restaurant at Admiral Retail Park next to McDonald's in Lottbridge Drove.

Councillors were meeting today to discuss the application, which planning officials have earmarked for approval.