Mike German AM: 'Pessimistic view'

As he emerged from the meeting, Mr German said the assembly and the WDA would be working together to try and win fresh orders for the company.

Mr German admitted there was only "a slim chance" of the factory remaining open.

KTH managing director Don Slintham denied claims of asset-stripping and said lack of investment in recent years and the loss of the orders made closure "virtually inevitable".

He described Friday's meeting as "constructive" and said the company would work with the Assembly and the WDA to try to keep the plant open.

A spokesman for AEEU said they were hopeful but not optimistic following today's talks.

The plant is due to close in August with the loss of at least 150 jobs. Fifty more employees could be transferred to factories in England.

The job losses at Llanidloes have come as a huge blow to the town, which depended on the foundry as its main employer.

And the mayor of Llanidloes Margot Jones said the closure would have a devastating impact on the local economy.

KTH was part of Sir Geoffrey Robinson's Transtec group before it was taken over by a Midlands-based consortium last year.