Struggling US car parts manufacturer Delphi is to close one of its factories in Cadiz, southern Spain.
Delphi posted a net loss of $4.6bn for the first nine months of 2006
Up to 1,650 jobs are at risk at the site as a result of the move, prompting unions to stage a protest at the plant.
Delphi said it had decided to close the factory - which produces steering, suspension and bearings - as high prices meant it was not competitive.
Delphi filed for bankruptcy in 2005, a move that hurt its former parent and top client, US carmaker General Motors.
Since then the firm has outlined plans to close a number of factories across the globe and cut several business lines.
Delphi added that another factor behind the closure of the Spanish plant was that the products made there were no longer central to its portfolio.