The Ford engine plant in Bridgend will close tomorrow with the loss of 1,000 jobs after 40 years of production.
It comes after the decision of the car maker last year to cease production, in what was a major blow for the Welsh automotive sector.
That has been compounded by the decision earlier this year of Ineos Automotive to abandon plans for a new factory, next to the Ford plant, assembling its new 4 x4 Grenadier vehicle in an investment that promised to create 500 jobs. It has now confirmed that the vehicle will be built in France.
When Ford announced the closure of the Bridgend plant it employed 1,644. Since then some 362 staff have found new employment or started their own businesses, while 236 retired or took severance.
Some 120 staff will remain on site for a number of months for de-commissioning work, while 50 staff have taken up employment at other Ford sites.
Economy Minister Ken Skates said: "Ford has been part of the very fabric of Bridgend for over 40 years and clearly, the full impact of the company’s decision to leave the town will be felt throughout the local economy and community for a long time to come.
"Whilst I recognise the challenges to the automotive industry presented by technological and legislative changes of late, nonetheless, there is no doubt that Ford’s decision came as a devastating blow for its workforce, Bridgend and the wider regional economy and it is one I remain deeply disappointed by."
Following the announcement the Welsh Government set up a taskforce, chaired by former Ford executive Richard Parry-Jones, which is working with a number of stakeholders to support those affected by the closure decision and attracting new investment into the area.
Mr Skates said: The taskforce has also pressed Ford for research and development funding to support the development of low-carbon automotive technology and I am delighted that Ford is establishing a £2m fund to support this work. The plan is for the fund to be targeted at SMEs and academic projects and administered by Welsh Government.
"The taskforce has also worked to attract new investment to the Bridgend site at a time of challenging global economic conditions within the UK economy, exacerbated by uncertainty over Brexit and subsequently the devastating impact of Covid-19."
Mr Skates said the announcement by Ineos to pull its investment at the 100-acre Brocastle Business Park, owned by the Welsh Government next to the Ford factory, was a "bitter disappointment."
He said the Welsh Government had undertaken extensive site infrastructure work to anchor the project at the Brocastle site. The Welsh Government is understood to have invested £5m in supporting the pulled project and will be seeking repayment.
Mr Skates said: "However, there have been a number of new enquiries for this large Welsh Government owned strategic site which we are working hard to progress.
"We know the global move to a low carbon society has seen car manufacturers accelerate their move to electrification. This is driving new alliances, new entrants into the industry as well as requirements for a new supply chain and skills set.
"We are determined to capitalise on this opportunity. Aston Martin has already chosen Bro Tathan Business Park at St Athan to be the home of its electrification programme and we want to build on that success by encouraging others to follow.
"We will continue to do all we can to stimulate new investment in the area and we will do this by focusing, where possible on the opportunities of next generation technology. With change comes opportunity and we are positioning Wales as a location for the new technologies that the sector will demand."
