A car components firm which plans to shed 95 jobs never drew down on the £4.4 million Welsh Government grant it was offered in December, it has been revealed.
Calsonic Kansei, which supplies heat exchange, air conditioning, exhaust and electronic components to manufacturers globally, announced redundancies at its Llanelli plant , with 95 jobs at risk following a "significant drop in sales."
Late last year Wales Online reported how the firm had secured a £4.4m grant investment from the Welsh Government which it said would help create a further 85 jobs over the next five years, with a focus on developing and producing electric vehicle technology.
Now the Welsh Government has revealed the plant, which currently employs 400 people, never took any of the money that was being offered.
The grants are offered in order to stimulate business activity and or create employment.
Llanelli's Schaeffler plant to close by the end of the year
The changes seen in Llanelli:
A spokesman for the Welsh Government said: "We are bitterly disappointed on behalf of workers and will do all we can to help them.
"Our long standing support and collaboration with the company to secure new opportunities for the plant is well documented and we will keep working with them to that end."
Calsonic Kansei has been approached for comment.
Its vice president of HR for Europe, Neil O' Brien, said previously that the automotive industry was at a "transitional stage".
He said: "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."
There are around 150 firms operating in the automotive sector in Wales, generating £3bn of output. The industry directly employs around 18,000.
