The plan hopes to regenerate the economy of Llanidloes

The KTH automotive plant in Llanidloes closed in September, with the overall loss of 250 jobs.

Powys Council's board of leading councillors has now backed a proposal plan to revive the town.

It aims to create a broadband internet economy, redevelop the town's community centre and provide new business opportunities.

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

The programme will include a �2.4m scheme to build a new access road off the A470 by-pass to the site of the former KTH factory.

The Welsh Development Agency owns the site and intends to build a hi-tech business park to recoup some of the 250 jobs lost by the closure of KTH.

Town county councillor Gareth Morgan said: "Llanidloes is in a strategic position in the middle of Wales and we are working with the WDA and the town council 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.

"This is the biggest investment in Llanidloes in more than 50 years and it is now up to the people of the town to grasp this window of opportunity.

"The county council and WDA have agreed to part fund a feasibility study into a new centre and that will now go out to tender," said Mr Morgan.

The net financial loss to the local economy of the closure of the KTH plant is estimated at �2.5m per year.