A NEWPORT plant could finally have a future after standing empty for almost a decade.

LG's unused semi-conductor factory, later owned by Hynix, was unsuitable for most businesses and was labelled a "white elephant".

The Assembly leadership is still footing the bill for maintaining the building, estimated at more than £600,000 a year.

Now the national politicians are applying to the city council to turn the building into a data-centre that would be used by private companies.

A spokesman said it was the first step in the potential redevelopment of the plant.

"The Welsh Assembly Government wants to stimulate a competitive market for the full-range of data-centre services in Wales," he said.

"Demand for data-centres - which house computers and associated components, such as telecommunications and storage systems, on behalf of business customers - is growing sharply thanks to the rapid growth of e-Business and data centre facilities are an increasingly important factor in economic development."

John Burrows, Chief Executive of Newport Unlimited said: "Any productive use for the Hynix building is going to be welcomed by us. We can then make our own planning for the surrounding area."

Newport West AM Rosemary Butler recently pressed Assembly minister Ieaun Wyn Jones for assurances about the future of the building.

She described it as "one of the most attractive and valuable sites in the UK" which was vital to the city's regeneration.

Mr Jones said he and officials were trying to make sure the site was marketed in the most effective way to attract good quality jobs but, he added, learning lessons from the past.

Project cost millions Earlier last year, the Auditor General said public bodies involved in the LG project should have kept a closer eye on the millions of pounds given to the development.

LG, an electronics complex, was intended to be the largest ever inward investment in Wales and create more than 6,000 jobs when it was announced in 1996. A total of £131 million was paid in aid but the projects were never completed and less than half the jobs materialised.

Eventually, £71 million was clawed back in cash and properties by the public bodies involved.