Aiwa workers told 'jobs are safe'

Aiwa is talking of widespread factory closures

The Welsh workforce of the Japanese electronics company Aiwa have been told that their jobs are safe despite reports that their factory was to close.

On Tuesday, the company announced to investors in Tokyo that it was shutting eight plants including the one at Newbridge in the Gwent Valleys.

Cutbacks: Sony is axing 400 jobs

But in a turn around, a spokesman for Aiwa has said that no decisions have been taken.

The company helped create much needed jobs at Newbridge in the Gwent Valleys, on the site of a former colliery.

The proposed closure - which would follow job cuts in Wales by Sony and Panasonic - was revealed on Monday night in Tokyo and came as a surprise to the company's 500 workers at Newbridge.

Reacting to the news, AEEU regional secretary James Rogers said: "We have been aware of difficulties for some time but this news has come as a shock.

"We will be talking to the company today to try to get the full picture.

"The factory is a vital source of employment in Newbridge and we cannot afford to lose jobs."

Aiwa Wales Manufacturing Limited will continue its operations as normal

Newbridge Managing Director Nobuo Baba

But later on Tuesday, Managing Director of the Newbridge plant Nobuo Baba said : "Aiwa will not be closing its operation in Wales.

"Aiwa Wales Manufacturing Limited will continue its operations as normal."

This was backed up by Islwyn MP Don Touhig who said he had received assurances from Mr Baba.

Mr Touhig revealed that a statement sent to staff read: "We will not be closing this operation in Wales and Aiwa Wales Manufacturing Limited will continue to operate as normal."

Meanwhile, the Welsh Development Agency put out a statement insisting that it was confident that the Newbridge operation was secure.

"National Assembly and WDA staff have been working for some time with the plant management on a development which will not only safeguard existing jobs but which, we hope, will enable the company to increase the number of people employed there over the longer term," it read.

"Although the Aiwa group itself is under heavy pressure because of stiff price competition and a downturn in markets such as the US, the Welsh plant is in the process of diversifying with Assembly and WDA help into contract manufacture."