The plant makes brakes components for the motor industry

TRW Automotive, which is among the world's biggest 10 automotive suppliers, said 156 jobs would be lost at the plant.

The company blamed a drop in business caused partly by the closure of Rover in the West Midlands earlier this year

TRW, which employs 638 people at the factory, described the job losses as "essential".

The cuts will be implemented at the end of the year.

The firm is also due to increase the working week of its remaining workers from 27 hours a week to 39.

This is a difficult decision but a necessary one in order to improve our competitiveness Steve Stott, TRW Automotive

Plant manager, Steve Stott said: "These reductions are essential in order to align employee levels with our volume of business.

"The automotive industry is highly competitive and we must ensure that we have the right cost base.

"This is a difficult decision but a necessary one in order to improve our competitiveness."

'Redeployment opportunities'

He said that the firm hopes to avoid compulsory redundancies.

"Consultation with employees and their representatives started," said Mr Stott.

"We will look for redeployment opportunities within TRW's other operations and will seek volunteers for redundancy.

"Given the number of jobs at risk of redundancy, however, it is likely that we will need to move into a compulsory programme.

"We will, of course, consult with employee representatives and provide appropriate support to those affected by the announcement," he added.

'Long-term commitment'

US firm TRW employs about 60,000 people world-wide.

Torfaen Councillor Neil Lewis blamed competition with similar businesses in Eastern Europe and Asia for the cuts.

"TRW has been a long term provider of employment in Torfaen, offering quality jobs, and any reduction in staffing levels will be a great loss to the area," he said.

"Thankfully many jobs will remain at the Pontypool plant and we hope that will be long-term commitment.

"Unfortunately, despite the excellence of our local workforce, it is very difficult for manufacturing firms to compete against Eastern Europe and much of Asia due to cost differences."

He added the council would work with the company and those staff affected to help find new employment.