Administrators hope to sell the plant as a going concern

They met representatives of the Transport and General Workers Union (T&G) on Tuesday.

The 93 staff who were still working at the car components plant heard last week they had lost their jobs after American factory owner Craig Smith said the company lost �4m in six years.

Unless a buyer is found for the company, assets could be sold off.

But the company's assets do not include the factory site itself which is owned by another company called Ferotec Reality, also owned by Friction Dynamics chief Craig Smith.

According to the T&G north Wales representative, Tom Jones, there is therefore nothing to prevent Mr Smith from profiting from the site by either selling or leasing the factory to another company.

Mr Jones added the situation highlighted the need for a change in the law in such circumstances.

The factory has been the scene of the UK's current longest-running industrial dispute.

Staff went on strike over pay and conditions in April 2001.

Eight weeks later, 86 members of staff were sacked.

Last year an employment tribunal decided the staff had been unfairly dismissed and were entitled to compensation, but Mr Smith launched an appeal against the ruling.

His case was due to be heard in London in November.

Unfairly dismissed workers are still picketing at the site

But sacked workers, who are still picketing on the site, fear they will now not receive a penny in compensation from him.

A fortnight before Friction Dynamics was put into administration, a new company called Friction Dynamex was set up by a former factory manager at the Caernarfon site, Mark Jones.

Mr Jones is considering the possibility of restarting production at the factory.