The first workers will leave KTH next week

A handful of the 210 staff at a mid Wales factory threatened with closure were made redundant on Monday as the fight to find a buyer continues.

KTH announced the closure of its car component factory at Llanidloes in February and 12 May marked the end of 90-day period of notice of redundancy for the workforce.

But only eight workers actually left the factory according to management.

This could be an advantage for bodies trying to working towards saving jobs by attracting a new company to take over the plant.

The company is finding there is no prospect of winning new business to replace the lost turnover due to continual pressure from cheaper overseas competition KTH statement

It is believed that the gradual dispersal of the workforce through redundancy could make it more difficult to attract any interested companies.

KTH issued a statement on Monday, announcing the closure of the car component factory, following the loss of a quarter of its business to one customer to low cost competition in Poland.

Winding down

"After thorough examination of every possible option it is with great regret that the company confirms that to date, no realistic alternative has been found," said the statement.

"The company is finding there is no prospect of winning new business to replace the lost turnover due to continual pressure from cheaper overseas competition."

A company spokesman said work at the factory would be wound down by the end of the year with the loss of 210 jobs.

"The speed of closure is dependent on how quickly the other 75 per cent of our customers re-source the work done by KTH to other contractors," he added.

Shop steward Andy Freeman said most of the workers would stay on for several months yet.

People in Llanidloes are gloomy about the town's future

"Rumour has it that we could be here for months in an effort to keep our customers happy," he said.

"The company can make people redundant on 12 May but there isn't a mass exodus."

Mr Freeman said morale was low because workers no longer believed they were working for a future.

"From 12 May the company can start taking tools off site and take them to one of their other operations," said Mr Freeman.

KTH management and the workforce have now agreed redundancy terms, according to Alwyn Rowlands of the Amalgamated Engineering and Electrical Union (AEEU).

Despite the efforts of employees and management, no alternative had been found to closing the factory.

"I hope the redundancy package will soften the blow for the workers but work will be gradually phased out before the end of the year," said company spokesman David Clarkson.

The original announcement by KTH that it intended closing the Llanidloes plant - the main employer locally - was a devastating blow.

Since then, the Welsh Development Agency, Welsh Assembly Government, Llanidloes Task Force and unions have worked to identify possible alternatives for the site.

Potential buyers

"We are currently examining an independent report commissioned to look at all possible options for the site, but these are limited and we must not raise expectations for the workers, their families or the community at this stage," said a WDA spokesman.

Two potential buyers toured the threatened plant last month and it is understood the WDA is still talking to one of the companies

But the feeling among people in the town is one of gloom, said Llanidloes Task Force chairman Margot Jones.

"We feel very frustrated because we don't know what to do or who else to turn to," she said.

"We've been to Westminster and Cardiff and the town council is still waiting to hear from Welsh Secretary Peter Hain about his approach to Ford to try and get business to keep the plant open."