Most of those made redundant have found new jobs

Irish-owned Dairygold closed its cheese packing-plant at Felinfach, near Lampeter, Ceredigion, last April.

Local MP Mark Williams has demanded answers but the Welsh assembly government said it was "confident" of a resolution "in the near future".

Dairygold said it was still in talks with officials in Wales.

Last September the assembly government threatened legal action against the company to reclaim �663,528, which was awarded in 2002, so it could increase its packing lines from four to six.

The project was completed in March 2004, but 18 months later the firm announced plans to close its factory.

'Pushing Dairygold'

An investigation by the BBC Radio Cymru programme, Manylu, discovered that machinery bought with the grant was moved to a packing factory in Staffordshire.

Meanwhile, Ceredigion MP Mr Williams said the factory in Felinfach was still empty, and "no potential purchasers had been identified".

He added: "It is disgraceful that, a year after 115 people lost their jobs at Dairygold in Ceredigion, we are no further forward in recovering grant money.

"Why has it taken the Welsh Assembly Government four months and counting to take legal action against Dairygold, after a warning was issued in September?"

The assembly government said it had been "pushing Dairygold for repayment of the grant for some time".

A spokeswoman said: "While, for legal reasons, we cannot go into details at this stage, we are confident that we should be able to bring news of positive developments in the near future."

A spokesman for Dairygold said it was confident of a conclusion to the issue.

Most of those made redundant by Dairygold have now found new jobs.