The shock announcement that Flexsys Rubber Chemicals will cease production at its Ruabon Works plant was made following a meeting between senior management at the plant and union bosses.

The company has cited low-cost competition from overseas as the main factor behind the decision and the news comes as a huge blow to industry in the region following a series of redundancies over recent months.

The Ruabon area in particular has been very hard hit after tile-manufacturer, Dennis, went into administrative receivership and 68 jobs were axed in February.

A 90-day consultation period with workers to try to find an alternative has now begun.

Flexsys plant manager Simon Howarth said: "Increasing competition from low-cost manufacturers in the Far East has led to this decision to exit those parts of the Flexsys business served by the site.

"While our people have worked tirelessly in recent years to ensure a safe and cost-effective operation at the site, Flexsys has been forced to make this difficult decision to secure its wider business.

"In making this announcement Flexsys regrets the loss of employment and the impact this will have on the lives of its employees at Ruabon and will do all it reasonably can to provide assistance to them.

"The company also recognises that this closure represents the end of an era for a manufacturing site with a long and distinguished history."

The news was broken to workers yesterday afternoon with 162 employees facing redundancy. According to the company, the closure process will take place in phases over the next three years.

Peter Hughes, senior regional industrial organiser at the T&G section of Unite said: "On the back of Dennis going, the community has taken two massive hits in the space of just four months.

"Flexsys are good payers in the manufacturing sector and this site is their only one in the UK.

"We are trying to put an action plan together to save as many jobs as we can. It is still a proposal at this point. We've got to see what the costings involved in shutting down the plant are and take legal advice to see if their reasons are legitimate.

"We will get in touch with the Welsh Assembly to see what can be done and if there are to be redundancies we've got to make sure that the redundancy packages are not the minimum but show loyalty to the workers who have been there for many years."

Cllr Aled Roberts said that it was a sad day for the area and a devastating one for the employees faced with redundancy.

He continued: "We will seek a meeting with the senior management team and we have procedures in place where our rapid response team will work with Job Centre Plus to ensure that those affected find alternative employment.

"We will also have to meet with the company to discuss the implications of closing the site down.

"I think it is a reflection of things internationally, there are other areas in the world where the cost of production is much lower. It is a very sad day and I think there are issues regarding the UK manufacturing industry that need to be looked at – we can't keep losing jobs like this."

The region's MP confirmed the shock nature of the announcement – revealing that at a meeting he had held just three months ago with a union representative, no hint had been given about job losses.

Clwyd South MP Martyn Jones said: "This is obviously disappointing news, made all the more so by the fact that it seems to have come out of the blue.

"I spoke to the T&G Rep three months ago and he was told there was no problem with the company. Over the 90 day period I intend to work with Unite officials and local Jobcentre reps to try and help local workers back into employment."

Plaid Cymru Wrexham councillor and group leader on the local council, Marc Jones, has been in discussions with economic development minister Ieuan Wyn Jones to discuss the closure of the Flexys factory in Cefn Mawr.

He said: "Losing 163 jobs is a massive blow to any economy and this is going to have a huge effect on Cefn Mawr and the Wrexham area.

"It is important now that we start helping the workforce to find alternative employment. I will personally do all I can to make sure that the area is prepared for these job losses.

"This is terrible news for all those employed at Flexys and we need to do all we can to help them. But this could also be an opportunity for the area, which has lived in the shadow of the chemical works for decades.

"We need to make sure that the Assembly government and Wrexham council work together to develop the site and the area and make sure that new highly skilled jobs are created in the community. I am confident that Ieuan Wyn Jones will do all he can to make this happen."

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