The Calsonic plant in Llanelli

The largest private employer in Llanelli is to shed nearly 90 jobs.

Staff arriving for the late shift at the town's Calsonic plant on Tuesday were told the news.

It is part of a restructuring programme by Calsonic Kansei (Europe) plc across the continent and has been blamed on falling sales.

The company employs 1,650 in the UK, of which 1,100 work in Llanelli.

Managing Director Dave Pallas visited the parent company board in Japan earlier this month to present the operation's business plans for the coming financial year.

He said there had been a significant and consistent fall in sales over the last two years, and over the next year it would amount to a total of 23% loss of sales in the UK since 2000.

This decision has been made with deepest regret and after long and careful consideration Dave Pallas

More recently it had lost a contact with the car manufacture Nissan.

He said: "The company plans to implement a major cost reduction plan amounting to £11million in year 2003/4 in order to support the profit recovery plan and to secure the business and provide long-term stability."

In all 150 jobs will be lost, with approximately 87 of them going at Llanelli.

Forty will go at the heat exchange division with immediate effect and a further 21 at the end of the year.

The Calsonic plant

Another 21 will be lost from the European technology centre and a small number at the head office.

Mr Pallas added: "This decision has been made with deepest regret and after long and careful consideration.

"The need for job losses now was an absolute last resort - this is because although our longer-term business forecasts in Europe remain optimistic, including new business that is secure, the positive effects of that new business will not be achieved unless drastic short-term financial recovery is realised."

Voluntary redundancy

The company is confident there will be no compulsory redundancies in Llanelli because of the age profile of the workforce.

Mr Pallas added: "A decision has been made to offer the opportunity to employees to take voluntary redundancy.

"This will offer enhanced redundancy terms to all employees above the statutory minimum payments.

"This will be a selective scheme where people can apply for voluntary redundancy and wherever possible, they will be allowed to leave immediately with a tax-free severance payment," he said.

Carmarthenshire Council cabinet member for regeneration Huw John said the authority would assist the redundant workers in any way it could.

"Car production has decreased in Europe and the consequence of which is reduced demand for Calsonic's products," he said.

"The county council will make every effort to assist the company in any way we can.