J L French is the town's major employer

J L French, which makes parts for the motor industry in Presteigne, made the decision after its US parent company announced plans to restructure its business.

The company is still trading and administrators are hopeful that they can sell it as a going concern.

Local MP Roger Williams said it was "essential" the business continued.

Administrators BDO Stoy Hayward said 164 staff were employed at the die-cast aluminium plant. It added that nine had been made redundant before it was called in.

The parent company, J.L. French Automotive Castings Inc, announced its restructuring on Friday, but its effects only emerged on Tuesday.

I have tabled an urgent question in the Welsh assembly Kirsty Williams AM

Brecon and Radnorshire MP Mr Williams said: "J. L. French is a major employer in Presteigne and it is essential that the aluminium casting business continues to operate.

"I have written to the Welsh Development Agency to urge them to take action to ensure that the aluminium casting plant is sold as a viable business, that will continue to provide employment in Presteigne for many years to come."

He added that he would be meeting with company officials and the administrators to discuss the plant's future and employees' pensions.

Brecon and Radnorshire AM Kirsty Williams said the jobs had to be saved because "alternative employment will not be easily found".

She added: "I have tabled an urgent question in the Welsh assembly about the potential job losses."

Buyer

Ms Williams is to also contact economic development minister Andrew Davies to ask that the Welsh assembly government "uses all its powers to encourage a buyer to take over the company and continue its operations".

A spokeswoman for the Birmingham-based administrators said they were hopeful for the future, as the company was still trading and there was support from customers.