The Welsh automotive sector has suffered a further blow with Japanese firm Calsonic Kansei announcing redundancies at its Llanelli plant.
The factory, which supplies heat exchange, air conditioning, exhaust and electronic components to manufacturers globally, has confirmed that 95 jobs are at risk following a "significant drop in sales."
Late last year the operation secured a £4.4m grant investment from the Welsh Government which it said would help create a further 88 jobs over the next five years, with a focus on developing and producing electric vehicle technology.
Government funding helps provide jobs boost for Llanelli automotive workers
The plant currently employs around 400.
Its vice president of HR for Europe, Neil O' Brien, said: "The automotive industry is at a transitional stage, as well as being at a key point in several major vehicle ‘life cycles’, with car manufacturers developing their technologies to satisfy the ever demanding environmental legislation and moving towards autonomous and electric vehicles.
"Calsonic Kansei has to develop products, systems and business strategies that support our customers’ needs, while delivering an acceptable financial result to allow investment in the future.
"During this period of transition, the added pressures of market instability caused by the political and economic conditions have affected our customers’ volumes and, consequently, Calsonic Kansei’s sales have seen a significant drop.
"To minimise losses, we have to take measures to manage and reduce our cost base across the organisation, whilst retaining our capacity to deliver new projects and initiatives.
"It is with regret that Calsonic Kansei have today announced proposals for redundancies across its UK divisions, with the impact for the Llanelli Site potentially affecting 95 positions.
"The company intends to do everything reasonably possible to reduce the impact of this proposal on its employees.
"The company will fulfil its statutory duties in consulting with the affected employees and their representatives with regard to this situation and will keep employees informed through regular communications."
Earlier this year another large automotive employer in Llanelli, in German-owned Schaeffler announced that its factory, employing 220, would close by the end of the year.
Llanelli's Schaeffler plant to close by the end of the year
There are around 150 firms operating in the automotive sector in Wales, generating £3bn of output. It directly employs around 18,000.
