A major employer in a Mid Wales town is set to close in the next six weeks with 100 jobs on the line, it was revealed today.

The future of the Kaye foundry in Presteigne is in doubt, with one shareholder admitting the company was in dire straits because customers were taking their work abroad. Dennis Bell is a shareholder and consultant to the company.

He said workers had been assured of their wages until the end of April, but work could not be around any longer than six weeks.

It is believed that about 80 per cent of the staff at the factory are Presteigne residents.

Mr Bell said 70 per cent of customers were taking manufacturing orders abroad and the die casting firm’s future was far from certain.

He said: “There is no date set for closure but it is on the cards as our customers are moving their manufacturing orders to Europe, India or China.

“Even though we are very competitive we think, and we produce a product that can’t be bettered elsewhere, everybody is feeling the pinch and they are all cutting their costs.

“Within two months it could all change because our customers are hearing talk of our problems and they are saying ‘can you increase production’? We are inundated at the moment – but it’s not long-term work.”

Kaye Presteigne wanted to downsize in a bid to try to save the company, Mr Bell added.

But he said they asked the landlord, who would not agree to them downsizing as much as they required, which would have kept 50 people employed.

“We have met with the Welsh Assembly and we have given them a wishlist of ways in which they could help,”said Mr Bell.

“Our redundancies will cost over £1million because many of our staff have been here for over 40 years.

“We have asked the Welsh Assembly for assistance with the costs of redundancy because there is no pot set aside for it.

“If they would assist us in that, we would be able to keep about 50 people employed and try and build the company up again.

“If assistance had been given in the latter part of last year or the early part of this year, we would have been able to continue a great business and introduce new work. It’s a great shame.”

By Andrew Morris