A Ministry of Defence storage centre in west Wales is to close with the loss of 190 jobs.
The MoD has announced a major shake-up of defence sites
Defence Minister Don Touhig announced the closure of the Defence Stores and Distribution Centre in Llangennech near Llanelli in Parliament on Thursday.
The centre will be subject to a phased closure, shutting completely by 2008.
Llangennech is the focal point for the receipt, storage and distribution of all MoD Forms and publications.
The announcement, which was inititally thought to affect 250 posts, was made as part of an announcement of the details of a wider shake-up of Ministry of Defence sites across the UK.
Mr Touhig told the commons the closures would result in a total saving of over £400m over the next 10 years resulting in 2,000 civilian job losses as well as 50 MoD posts UK-wide.
He added that the job cuts were painful and difficult but necessary "in the circumstances we are facing".
Paul Beynon said the announcement was a major shock
Staff said on Thursday the announcement had come out of the blue.
Worker Paul Beynon said: "It's a major shock. No-one was expecting this. Everybody thought it would be secure for years to come."
Llanelli MP Nia Griffith told the Commons that the Llangennech centre had up to date equipment and its closure would be contrary to the UK Government's defence strategy.
Llangennech holds MOD forms and publications, as well as navy timber, metals and support stock for warships.
It also houses the MoD civilian records archive, which contains more than two million personal files, as well as VAT records on behalf of HM Customs and Excise.