Five hundred jobs in Worthing have been safeguarded after Britain's largest loudspeaker manufacturer chose to stay in the town to build its new £7 million headquarters.

B&W Loudspeakers has started building a state-of-the-art office on a former landfill site in Dale Road, East Worthing.

The development, which will combine the manufacturing and store operations, is expected to be completed by spring next year.

Managing director Paul Stanforth said: "Worthing has been the home of the company since it was founded in 1966. The decision to remain in the town will allow the company to develop its business with the existing skilled and professional workforce.

"I hope that our plan to invest more than £7 million in a new facility will encourage other successful companies to move to Worthing.

"The consolidation of our manufacturing and stores operation will mean we will be able to operate much more efficiently and, at the same time, reduce the amount of lorry transport within the East Worthing and Lancing area."

Steven Waight, chairman of Worthing Council's policy and resources committee, said: "This is excellent news for Worthing and the public can be justifiably proud of all those who have helped secure this investment."

B&W was founded by John Bowers and Roy Wilkins in the Fifties.

Mr Bowers worked during the war as a special operations executive in clandestine radio contact with allied resistance personnel in occupied Europe.

In 1966 the pair founded the current shop in Meadow Road and in 1976 set up a dedicated research and development site in Steyning.