Rubber chemicals have been made at the site since the 1930s
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Wrexham council's leader has called for more information on sites used by rubber chemicals firm Flexsys, amid fears they could be contaminated.
Aled Roberts said he believed there were concerns over contamination at the main Cefn Mawr factory, as well as other sites in the Wrexham area.
The factory is due to close with the loss of 163 jobs.
Mr Roberts said the Environment Agency, council and Welsh Assembly Government should discuss how to clean the site.
He added that it was "beyond" the council to deal alone with the issue of cleaning up, which he said might have to be dealt with by the UK government.
The US-owned Flexsys Rubber Chemicals factory has been open since the 1930s and makes specialised chemicals for the rubber industry.
'Problematic'
Mr Roberts told BBC Radio Cymru: "It's a large site in the middle of Pentre Cefn and over the last years, issues have arisen.
"The Environment Agency has said there's no way we can build houses which are located within a specific distance to the site.
"Over the years chemicals apparently have been stored on the site and because of that the land in certain areas could be problematic."
Mr Roberts said there was also a need for the small companies associated with Flexsys to be supported.
Management at the factory blamed competition from the Far East when they announced the closure on Wednesday.
The parent company Solutia Inc has started a 90-day consultation with workers at the plant, which is expected to cease operations by the end of the year.
Other "guest" operations on site are not expected to close until 2010, with the site as a whole shutting in 2011.
Historical importance
The union Unite said the job losses would "devastate" the local economy.
"This is the second company to close in the local area, following the closure of Dennis Ruabon," a spokesperson said.
The factory, known locally as the Ruabon Works, is one of the oldest industrial sites in the Wrexham area.
It has produced chemicals for the rubber industry since the 1930s, and Flexsys Rubber Chemicals Limited took over operations there in 1995.
The plant's roots go back to the 18th Century when coal mines, brickworks and potteries first began operating there.
Chemicals production was not introduced until the following century with the extraction of oil and wax from shale and the distillation of tar from coal.
In the early 20th Century the site became the world's leading producer of phenol, which can be obtained from heavy oil and tar and has a variety of uses.
In 1919 Monsanto established its first venture outside the USA at Ruabon Works and vanillin, salicylic acid and aspirin were manufactured.
In 1930 manufacture of chemicals for the rubber industry was introduced and in 1995 Flexsys Rubber Chemicals Limited became operators of the site, focusing on the manufacture of highly specialised chemicals for the international rubber industry.
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