More than 150 people are likely to be made redundant
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An electronics firm has announced it intends to close its Cwmcarn factory, near Newbridge, with the loss of more than 150 jobs.
Solectron blamed the closure on "changing market conditions" and said moving jobs to "lower-cost regions" was an option.
The company has now entered a 90-day consultation on the site's future.
Trade union officials have condemned the decision saying it was a "kick in the teeth".
The Solectron Cwmcarn site was involved in after-sales service.
The company said closure of the site would lead to the loss of 130 permanent positions and 21 temporary posts.
A spokesman said Solectron was taking action to align to the market conditions and meet "future customer needs".
'Bitter blow'
He added: "We continue to invest in our future by strengthening our capabilities to meet expanding customer reliance on outsourcing in lower-cost regions.
"Consistent with this strategy and after an extensive review, the company is considering the closure of the Cwmcarn, Wales facility."
The company hopes to close Solectron Cwmcarn in October 2007.
A spokesman for the Communication Workers Union (CWU) said it was a "bitter blow" for a "loyal and hardworking workforce".
He added: "It looks as though our worst fears were well founded and we take no satisfaction from that at all.
"It would not have taken much to retain and attract work to this site and be able to keep the factory open.
"This may be part of Solectron's rationalisation of its global footprint, but it's a kick in the teeth for our members."