An offer from a Russian company to buy a Conwy Valley aluminium company has fallen through, administrators have confirmed.
The plant went into administration seven months ago
The offer for Dolgarrog Aluminium was accepted last month, but KPMG in Manchester said that had now collapsed.
The plant, which employed 170 at its casting and rolling aluminium mill, went into administration last August.
The Welsh Assembly Government will now lead an action group to develop a strategy for the site and area.
Dolgarrog Aluminium was set up six years ago, following a management buy-out of the former Alcoa plant stopped production in November.
'No longer interested'
Brian Green, joint administrator and partner at KPMG Restructuring in Manchester, said it had "worked to overcome a number of obstacles which were frustrating the completion of a potential deal".
"It is, however, with regret that we have to announce that the proposed buyer, a Russian operation, has confirmed that it is no longer interested in pursuing the transaction to its completion."
Mr Green said it would now concentrate on the disposal of the company's assets via alternative routes.
Deputy First Minister and Economy Minister Ieuan Wyn Jones then announced the creation of the assembly government-led led "local action group" to look into the site's future.
The group will work closely with the administrators, Conwy Council and other public sector bodies, he said.
Mr Jones said: "The assembly government fully appreciates the importance of this site to the local community and the role it has played in sustaining local prosperity.
"I intend to make sure that no effort will be spared by the assembly government to give Dolgarrog a new future as an important provider of employment opportunities for the region."
Deputy Minister for Regeneration Leighton Andrews said: "The local action group will work with the communities surrounding the Dolgarrog site to harness and exploit the existing strengths and development potential of the area, to ensure we create a strong and sustainable economic future for the community."