About 900 jobs will be lost after the motor parts maker Bosch announced the closure of its south Wales plant.
The company said operations at its plant in the town of Miskin, about 150 miles (240 kilometers) west of London, would be phased out by 2011.
“The Bosch Group is currently facing the worst economic downturn for many decades and has been especially hit in the automotive sector,”
the company said in a statement. It added that the grim economic climate would see it return its first negative results in 60 years.
Final confirmation of the Bosch board’s decision will be known within the next few weeks.
Stefan Asenkerschbaumer, president of the starter motors and generators division, said: “I deeply regret that we could not find a solution for the Cardiff plant.”
“However … the economic situation in the market leaves me no other choice. Without structural adjustment the long-term commercial future of the whole division is at serious risk.”