BUSINESS leaders say the closure of a major distribution centre with the loss of more than 300 jobs is a blow to the economy.

The Swanley and District Chamber of Commerce says it is disappointed the Co-operative group is closing its regional depot in Swanley, which employs 310 people.

But it remains optimistic a new owner will be found for the site at the Pedham Place industrial estate, off the junction of the M25 and M20.

The Co-op is to close the Swanley factory and another centre in Gillingham, to make way for a 320,000sq ft base in West Thurrock, from March next year.

All 563 affected workers have been offered jobs at the new site, which is about 10 miles from Swanley.

But chamber director Frank McConnell admits the exit of the Co-op will leave a major void.

He said: "I am very disappointed the Co-op has taken this decision. Swanley is a great place to do business.

"For any company of this size to move out is a major blow to the area."

However, Mr McConnell refuses to be downcast about the future prospects for the site.

He added: "Nothing around here stays empty for very long, so I am still quite positive. I would not expect the building to be empty for too long it is a great place to have a distribution centre.

"Four or five years ago I would have been far more concerned but the local economy is really prospering now."

Workers' union Usdaw (Union of Shop, Distributive and Allied Workers) is in discussions with the Co-op, to ensure the employees are successfully relocated.

A Co-operative group spokesman said the change was necessary, because goods were not getting to stores around the country in time.

He added: "This is a long-term solution and will secure future employment for staff, while giving customers the high level of product availability they expect."