The drugmaker, which has made no secret of plans to cut costs, will shutter manufacturing operations in Sandwich, UK, over the next two years. In January, Pfizer announced plans to save $1.5 billion to $2 billion in expenses by the end of 2008 and, as part of that effort, to eliminate about 10,000 jobs, or 10 percent of its total work force.

The move comes as Pfizer suffers from generic competition and struggles to replace top-selling drugs with new meds. Just yesterday, Pfizer ceo Jeff Kindler told an investor conference that already sluggish Lipitor sales will be at the lower end of this year’s disappointing forecast.

The Sandwich plant makes active ingredients for drugs for both humans and animals. Up to 15 employees will remain at the site to support the development of “regulatory starting materials,” and Pfizer plans to continue some research and development work there.

“It is with regret that we announce our decision to end manufacturing operations in Sandwich after 53 years,” says Tony Maddaluna, vp of Pfizer’s global manufacturing operations, in a statement. “This is the latest in a number of global manufacturing changes, to ensure we are operating as efficiently and effectively as possible and able to respond to the challenges of today’s business environment.”