JAPANESE electronics giant Panasonic is to close its huge works in Cwmbran and shift the entire workforce to the other plant in Newport.

Panasonic will vacate its well-established factory on the Llantarnam Park Industrial Estate and move all 130 jobs to its other factory at Duffryn in Newport, which currently employs 520 people.

Panasonic, the trade name of Kyushu Matsushita Electric(UK) LT (KMEUK) says it will finally leave the Cwmbran factory in September next year.

The Japanese firm says it is talking with the AEEU union and plans to transfer all its workers from the Torfaen factory to Newport plant.

KMEUK managing director Yoichi Korehisa explained: "Substantial capital investment in a new manufacturing system has enabled the company to reduce its overall operating costs.

"We have withdrawn from the Cwmbran factory in order to fully occupy the new wholly-owned premises at Newport further stabilising employment for the future."

The Gwent factories make telecommunications equipment, in particular cordless telephones.