In a shattering blow for manufacturing in Peterborough, the Italian-owned company announced on Thursday it plans to end production at its Woodston plant later this year.

Bosses at the firm, which acquired Hotpoint in 2001, blamed a downturn in demand from the UK market for freestanding fridges for the shock news.

Today, chairman of Peterborough Chamber of Commerce Iain Crighton said Indesit should be held to account if it does not offer the affected workers retraining to help them compete in the jobs market.

Mr Crighton said: "I think the provision of training in Peterborough is not too bad, and I am sure that the relevant people at Hotpoint will be trying to ensure the team members will have access to as much support and training as they need."

Special Report: Hotpoint timeline: The path towards job losses
As Indesit shuts it's Hotpoint factory in Peterborough with 400 job losses.
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"If they don't, then I think we need to be challenging Hotpoint and asking them directly what services they are putting in to support the 400-odd people that are being made redundant.

"The question is, though, whether those people can go from engineering jobs to other engineering jobs, which is one thing, or whether they will need to go from engineering jobs to administration jobs or whatever, which is more difficult."

Indesit plans to shut the production lines at its Morley Way plant on October 31, although 1,000 jobs at the site in head office, service centre and logistic roles will not be affected.

It is believed bosses broke the news to staff during a changeover between shifts, reportedly leaving workers grim-faced and shaking their heads in disbelief.

Chief executive of the Cambridgeshire Chambers of Commerce John Bridge said the city was tackling the issue of training, with a new post in charge of adult skills strategy created at the city council.

He said despite the gloomy news from Indesit, elsewhere there were encouraging signs for Peterborough's economy, singling out the huge warehouse site proposed between Stanground and Whittlesey as a reason for optimism – and a future source of jobs.

Distribution giant Gazeley wants to create an "inland port" on what is currently open land, complete with a link to the freight railway line.

Mr Bridge said: "I understand that if Gazeley gets planning permission, it could have its first 'shed' up in 12 weeks. Here's a company that wants to invest £500 million in Peterborough and create 4,000 jobs – that for me is positive.

"But we also need to put something in place in terms of retraining for the staff at Indesit. The company needs to be an integral part of that, and hopefully it will want to be."