The company says it has made a 'difficult decision' to close the plant

Manufacturing work at Chubb Fire, at Ferndale in Rhondda, is to be switched to China.

The closure is the latest announcement from several employers that Welsh jobs are to be moved abroad.

This month Panasonic confirmed that it was making almost 500 redundant from its Cardiff plant because the work was moving to the Czech Republic.

Chubb announced in June 2004 that it was reviewing the future of its Welsh works.

Chubb's long history of production in Wales has made this a very difficult decision Eric Patry, Chubb

It has now said closing its Ferndale site by autumn 2005 would allow it to concentrate its manufacturing work in China, where costs are lower.

Chris Bryant MP for Rhondda said the closure was "distressing news for everyone".

But he said the whole of Europe was facing the same battles to keep production.

"We are never going to be able to compete in the bargain basement with countries like China," he said.

"It's all of Europe that faces this challenge."

The firm said the move meant it could also create 26 jobs at its other UK locations, which would focus on product design, development, quality and supply chain management.

Eric Patry, President of Chubb Continental Europe said: "Chubb's long history of production in Wales has made this a very difficult decision so we have taken the time to evaluate all of our options.

'Support employees'

"Now that we have completed our review and after detailed consultation, I believe transferring production to China is the best way for us to continue to provide our customers with a high quality product at a competitive price.

"We are committed to providing support to those employees affected by this decision. We will now continue the consultation process with all Ferndale employees and their representatives."

The Chubb factory first opened as the Pyrene company in 1950. The firm cut 65 jobs three years ago, blaming competition from overseas.

In the spring of 2004, Lloyds TSB announced it was planning a pilot call centre scheme in India which would mean its Newport site having to share in more than 100 job losses in the UK.