The company once employed about 600 people

Cooper Standard Automotive in Maesteg blamed lower labour costs in Poland.

Economic development spokesman Alun Cairns claimed "Sir Humphrey-type characters" had taken over the work of the old Welsh Development Agency.

An assembly government spokesman accused him of "breathtaking naivety" and "economic illiteracy".

The company, which makes car parts, plans a phased closure of its plant over the next 18 months.

'Won't exist'

It said it had been making losses over the last two years and had to move work to Poland and France to keep going.

Company spokesman Brian Roderick said: "It's just not economically viable any longer to produce here. Productivity levels are very good, it's nothing to do with inefficiency, it's pure economics."

Mr Roderick added: "Out of �20m sales, up to �6m goes in labour costs and fringe benefits, but labour costs in Poland are much, much lower and it will turn the �2m losses we're making around."

He said workers had been kept informed of the situation and it was hoped that making the job losses over a long period would "cushion the blow".

Mr Cairns said 3,000 manufacturing jobs had been lost since the WDA was wound up and brought under the control of the assembly government earlier this year.

He claimed its private sector-style approach had been lost.

"If this pattern continues our manufacturing sector won't exist for much longer."

"We now have bureaucrats, civil servants, Sir Humphrey-type characters seeking to negotiate."

An assembly government spokesperson added that officials from the Department for Enterprise, Innovation and Networks had supported the company "in a number of areas over the years."

The spokesperson added: "More recently (the officials) have been in dialogue with them regarding the identification and implementation of cost-savings measures through a series of improvement initiatives."

Responding to Mr Cairns' claim over job losses since the WDA merger, Enterprise Minister Andrew Davies said: "Official figures show employment in Wales is at a record high, including many hi-tech jobs.

"However, we do not take any job losses lightly."