The plan hopes to regenerate the economy of Llanidloes

Councillors have backed an innovative plan to revive Llanidloes, which is still reeling from recent economic setbacks.

The KTH automotive plant in Llanidloes is expected to close for good at the end of September, with the overall loss of 250 jobs.

The final 84 workers at the car part plant will leave for the last time on 26 September, creating a serious employment problem in the town.

But on Tuesday, Powys councillors agreed to back a regeneration plan for the town which could include setting up a major new tourist attraction and a redevelopment of the town's community centre.

But after what has happened with KTH we don't want to put all our eggs in one basket in future Gareth Morgan, councillor

Councillors have agreed to set up a steering group to oversee the plan which aims to improve the town's economic prosperity.

The move follows a meeting between Llanidloes task Force - a group set up to protect the economy of the town - and Welsh Assembly Government Economic Development minister, Andrew Davies, in July.

Tourist attraction

The upshot of that meeting was a report by Graham Davey, Powys Council's director of economic and community regeneration.

"Given the existence of Llanidloes Task Force, that body clearly provides the potential to act as the umbrella partnership overseeing progress on the plan," said Mr Davey.

"But there is a need to reconsider and extend its membership to ensure that all relevant partners are properly represented.

"There is also a need to establish a smaller officer steering group with the remit ton prepare the Regeneration Plan and ensure its effective implementation."

A new community centre is one of the projects in the plan

The need for two feasibility studies has already been identified.

One will consider the possibility of establishing a 'significant' new tourist attraction in the town.

The second study will assess the viability of the Llanidloes community's proposals to redevelop the town's community centre.

Llanidloes' county councillor, Gareth Morgan said: "Llanidloes is in a strategic position in the middle of Wales and we feel that setting up a major tourist attraction could attract a lot of visitors.

"We are also working with the WDA to try and create more jobs and attract more companies to the town.

"But after what has happened with KTH we don't want to put all our eggs in one basket in future."

The KTH factory will close on 26 September

Powys is not classed as an Objective One area so does not receive grant aid through that European funding programme.

And it is not an assisted area so it does not qualify for regional assistance.

But already several projects to boost the area's economy are underway.

An exhibition of timber-framed buildings based at the town's old market hall has attracted 500 visitors a week this summer.

And last week, plans for a multi-million pound woodland holiday village at Pen y Banc Woods near the town were unveiled.

The WDA has submitted a planning application for the building of a new roundabout on the Llanidloes by-pass and an access road into the site of the KTH factory.

"The planned access would provide new opportunities for further investment and development in Llanidloes," said a WDA spokesman.