A medical equipment factory in South Wales is set to close, putting over 500 jobs at risk. American firm Zimmer Biomet, which makes hip and knee replacements, said it would "cease manufacturing" at its site in Waterton Industrial Estate in Bridgend.
It will enter a consultation with its 540 employees. The factory once employed over 800 staff.
The company said it "recognises the effect a closure would have on team members" and would be working with staff on how to limit job losses. The announcement only impacts those working in Bridgend's manufacturing plant, with operations at its nearby Bridgend commercial distribution centre unaffected.
Maria Silva, plant director, Zimmer Biomet Bridgend, said in a statement: "Today, Zimmer Biomet announced a proposal to cease manufacturing in Bridgend, Wales. The local leadership team has met with union representatives and employees to advise them of the proposal and will begin a consultation to evaluate alternatives and how to limit the loss of jobs.
"Zimmer Biomet employs 540 team members at the manufacturing site. We recognise the effect a closure would have on team members and the community, and we are committed to treating people with dignity and respect, and to being as transparent as possible throughout the consultation.
"Our focus is on maintaining a robust supply chain and reliable delivery to our customers. If a decision is taken to proceed, we have planned how to transfer production safely and effectively to other locations in Zimmer Biomet’s global network.
"This announcement does not affect team members in our UK Commercial and R&D teams or at the Bridgend commercial distribution centre. We remain committed to customers, patients and team members in the UK, as we continue to invest in R&D and bring innovative solutions to market." In 2016 the Welsh Government gave £700,000 to the firm as part of a £2.5m expansion of the Bridgend site, creating 40 new jobs at the time.
Economy Minister, Vaughan Gething said: "This is extremely disappointing news, and will be deeply concerning for staff at Zimmer Biomet and the wider community.
“The Welsh Government is now engaging with the company to understand the rationale for this decision and explore any options that exist to protect these jobs.
“Our priority now is to support the staff affected by today’s announcement. We will be working closely with Bridgend County Borough Council, the Department for Work and Pensions and the plant’s trade union to ensure employees receive the support they need.”
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