GWENT windscreen wiper firm Trico is to create 200 jobs at its Eastern Valley headquarters, the Argus can reveal.

The Argus has learned that the US-owned plant, is being offered regional selective assistance (RSA) to create the jobs in the next three years.

Trico, where 508 are currently employed, is part of the US conglomerate Tomkins.

The money will be used to expand and equip the Trico factory just outside Pontypool.

Trico is closing its factory in Dunstable, Bedfordshire, and another plant in mainland Europe is also to be axed , the Argus understands.

But suggestions of jobs "poaching" have been rejected by the National Assembly which is offering the company what is understood to be a substantial grant.

Trico finance director Terry Morgan told the Argus that he was not yet ready to discuss the expansion plan because of the "sensitive" nature regarding the "exiting" of the English factory.

Mr Morgan said: "All I can say is to confirm that we have been made an offer of a grant from the National Assembly."

The expansion will bring the jobs total at the £28m annual turnover Torfaen factory to 708 making it one of the biggest employers in the borough.

A National Assembly spokeswoman confirmed that an offer of an RSA grant had been made to windscreen wiper firm Trico.

She said: "The money is for expansion and for new plant and machinery at Pontypool which is Trico's UK headquarters."

The spokeswoman, who would not reveal the amount of the grant, said it is related to the creation of 200 new jobs up to the year 2004 at Trico in Torfaen.

The Assembly spokeswoman said: "There has been some concern voiced about jobs poaching but what we can say is that we don't give grants to poach jobs from one place to another.

"The RSA is a discretionary grant to help improve the efficiency and competitiveness of a business within a selected area. From our point of view we are acting to help the Trico plant in Wales which is their headquarters.

"The grant that we are offering is purely for expansion in Pontypool and it does not cover any transfer or re-location costs of jobs from elsewhere. We have dealt with it purely as a Welsh-based company."