A major construction company has put 40 jobs at risk after announcing the decision to close its office in Wisbech.

Kier Construction, which recently tabled a £221m offer for Norwich-based May Gurney, revealed it would close its west Norfolk office in September, as part of a review that will centralise its operations at Cambridge.

Graham Howe, eastern managing director, said the move to close the office had been taken to improve efficiency amid the 'harsh realities' of the current economic climate.

But he said the company's smaller offices in Norwich and Witcham, near Ely, would remain open.

It comes as Kier Construction mounted a takeover bid for May Gurney last month, which was backed by the Norfolk firm's directors.

The news was an about-turn for the May Gurney board which said it would give its unanimous support to a merger plan with Berkshire-based Costain.

Mr Howe said Kier's eastern business was 'robust' but difficult decisions had to be made.

'We are going to try and relocate as many people as possible but undoubtedly some people may not want to go and some people will not fit into a new structure,' he said.

'All office-based workers are under consultation but I can't predict how many people will be made redundant.

'It is a really difficult decision to make. I'm very proud of our heritage in Wisbech and we would look forward to these relationships continuing.'

Staff have been sent letters explaining the proposed re-structuring and a 30-day consultation period is under way.

Mr Howe praised his staff for the professionalism they have shown since the announcement.

He added: 'I'm excited about the potential of this business but the negative side is having to make the really hard decision to relocate.

'But I have a responsibility to my shareholders and to this business and this move will improve our efficiency in the challenging current economic conditions.

'I would reiterate that Kier Group plc and the eastern business remains in a robust position and has a healthy pipeline of secured and potential work going forward into our financial year to June 2014.

'Nevertheless we cannot isolate ourselves from the harsh realities of the challenging economic conditions facing the industry, which look set to continue on a similar course for some time to come.'