A second Chinese footwear company is to set up a factory in west Wales creating 150 jobs.

This is one of very few manufacturing investment made by China worldwide - both of which are in Pembrokeshire.

The first - Leaveland Shoes - has been in business in Pembroke Dock for over a year and employs 150 people.

The second firm - the Hong Kong-based Sun Ya Corporation - hopes to double that number at its Milford Haven plant.

Although labour rates in China are much lower - manufacturing in Wales gives the Chinese access to European markets.

Reversal

Chairman of the Welsh Development Agency David Rowe Beddoe said it was a reversal of what has been seen with British retailers - many of whom are transferring production overseas.

"Here we have successful Chinese manufacturers who wants to enter the European market," he said.

"They see opportunities for their product. They wish to come and source within the European market so that they can actually give more flexible supply to their clientele."

The first Chinese investment was supported by the Welsh Office - now the National Assembly for Wales - under the Regional Selective Assistance Scheme.

At the time Alun Michael said that tourism - an important part of Pembrokeshire's economy - had to be combined with a wider spread of commercial activity.

He also expressed the hope that Leaveland's decision would lead to further successful collaborations and would "work again many times over and that more companies will locate in the area."