Mike German AM: 'Pessimistic view'

The foundry is due to close in August with the loss of at least 150 jobs and 50 more employees could be transferred to factories in England.

KTH has blamed the loss of two major contracts for a slump in orders.

Assembly economic development minister Mike German held talks with management and unions at the factory last month.

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

'Constructive' talks

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 last month's meeting as "constructive" and said the company would work with the assembly and WDA to try to keep the plant open.

A spokesman for the AEEU said the union was hopeful but not optimistic following the recent talks.

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

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.