The closure of LG Electronics has been blamed for the job losses

Yu Sung Ltd's only customer LG Electronics announced its closure to its 315 workers last month.

Now the plastic casings company which supplies it has said unless a new customer can be found, it too will have to close.

Staff have been told that production could end three days before Christmas.

However, management have said they are trying to find a way of keeping the site open.

A spokesman for the firm which has been operating for nine years said it is consulting with its workers and is trying to find a way to prevent the closure.

The company has entered a consultation process with its workforce to seek means of avoiding a closure situation Company spokesman

"It is with deep regret that the company must review its UK operation after nine years," said the spokesman.

"This decision has been taken in direct response to the proposed full cessation of business taken by the company's sole customer, LG Electronic.

"The company has entered a consultation process with its workforce to seek means of avoiding a closure situation."

The spokesman said if the company cannot find avoid closure situation it is proposed that production will cease from 22 December.

"If this occurs the company will seek to put an appropriate support package in place for its staff," he added.

LG Electronic which assembles computer monitors announced it was to close last month, blaming falling prices for their decision.

It was the only surviving LG factory in Newport following a landmark investment in 1996, promising 6,000 jobs, most of which failed to materialise.