THE founder of one of Gwent's most successful companies is to take over the reins of the Welsh Development Agency.

Roger Jones, (pictured) who started Penn Pharmaceuticals in Tredegar in the early 1980s, replaces Sir David Rowe-Beddoe as chairman at the end of the year. Mr Jones joins the WDA at a difficult time for Welsh industry.

Forecasts for the next three years show that not enough new businesses are planning to set up in Wales and unemployment rates are unacceptably high.

Crucial sectors of the economy have been affected by the swingeing job losses at Corus steel plants, particularly in Newport and Ebbw Vale, and the tourism industry has been badly hit by the foot-and-mouth crisis.

But Mr Jones said today that the new job would be "a huge responsibility" and "very challenging".

He is already active with the agency as chairman of its entrepreneurship action plan. The appointment of Mr Jones will be welcomed by Welsh industrialists, who admire his business skills and his expertise in science-based enterprises and technical training and education.

Mr Jones, who is 58 and lives in Brecon, is also a governor of BBC Wales. He will be working closely with WDA chief executive Graham Hawker, who also came to his agency job after a high-profile career in industry.

Mr Jones' strong Gwent links mirror the latest major project in which the agency is taking a leading role - the £100 million Celtic Springs technology park on the outskirts of Newport.

The scheme is regarded by the WDA as an integral part of the long-term economic strategy for SE Wales.

Following the Corus redundancies, the agency is working with the Assembly and local councils on a study which will look at what can be achieved to boost the economy in the area over the next 15 years. Mr Jones will be closely involved in this.

Penn Pharmaceuticals was the subject of a £12 million management buyout last year.