A car components company affected by the collapse of MG Rover is to make 156 workers redundant.
TRW Automotive of Pontypool said the cuts were essential after suffering a downturn in trade.
Management at the plant said most the cuts would be implemented by the end of this year with the rest during 2006. TRW makes disc brakes and drum brakes for car companies.
Steve Stott, the firm's plant manager in Pontypool, said: "These reductions are essential in order to align employee levels with our volume of business. The automotive industry is highly competitive and we must ensure that we have the right cost base.
"This is a difficult decision but a necessary one in order to improve our competitiveness.
"Consultation with employees and their representatives has started. We will look for redeployment opportunities within TRW's other operations and will seek volunteers for redundancy.
"Given the number of jobs at risk of redundancy, however, it is likely that we will need to move into a compulsory programme.
"We will, of course, consult with employee representatives and provide appropriate support to those affected by today's announcement."
Jim Hancock, regional secretary of the TGWU in Wales, said: "Time and again we have seen multinationals relocate from Wales with relative ease. We are, as always, the cheap and easy option when companies want to reduce costs."
Solihull councillors recently gave the green light for a new business park - called The Green - located on the former 57-acre TRW Automotive site off the A34 Stratford Road and Blackford Road.
The Council's planning committee granted permission for the construction of 333,000 sq ft of office space at The Green, complementing existing buildings occupied by TRW Automotive and the Goodrich aerospace business.