About 75 jobs are set to go at automotive castings specialist Copal Casting in Handsworth, which has been in trouble since the collapse of MG Rover earlier this year.
Parent group Alumasc last night announced that the operation will begin closing down on November 18.
Losses have mounted at Copal since Longbridge stopped production in April and attempts to find a buyer have failed.
Trading losses, write-downs and redundancy costs are likely to amount to £1.5 million the Kettering-based engineering group said. Alumasc, whose shares closed five pence or three per cent down at 151p said it was now concentrating on new core projects outside the automotive industry such as premium building and engineering products "where know-how and service are at a premium".
Work on replacing the MG Rover and Powertrain business had been going well but profits from the group's engineering business for the year to December 31 would be lower than in the previous 12 months, the firm added.