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Plans to create 340 jobs on hold Plans to create 340 jobs on hold
(about 2 hours later)
Plans to create 340 manufacturing jobs in Newport have been postponed because of the downturn in the economy.Plans to create 340 manufacturing jobs in Newport have been postponed because of the downturn in the economy.
Irish manufacturers Quinn Group had been planning to build a new factory next door to its existing plant on the former LG site in south Wales.Irish manufacturers Quinn Group had been planning to build a new factory next door to its existing plant on the former LG site in south Wales.
It was due to have become operational by the start of this year.It was due to have become operational by the start of this year.
The company said the existing plant which produces radiators and which employs 400 people, is unaffected by the announcement.The company said the existing plant which produces radiators and which employs 400 people, is unaffected by the announcement.
The new factory would have made insulation panels for residential and industrial premises.The new factory would have made insulation panels for residential and industrial premises.
Lay offLay off
The company took over the site in August 2005 with a £133m investment and makes around four million compact radiators a year.The company took over the site in August 2005 with a £133m investment and makes around four million compact radiators a year.
A spokesman for the firm said: "Because of the way the economy has gone we have decided to lay off. That is the reason pure and simple.A spokesman for the firm said: "Because of the way the economy has gone we have decided to lay off. That is the reason pure and simple.
"We are going to lay off until the economy picks up. There is no point getting something up and running while the economy is slowing down.""We are going to lay off until the economy picks up. There is no point getting something up and running while the economy is slowing down."
The company has refused to speculate about when the project will now begin.The company has refused to speculate about when the project will now begin.
Leader of Newport council, councillor Matthew Evans, expressed disappointment with the announcement.
"This scheme would have created hundreds of new manufacturing jobs in the city and we will continue to work with the company and the assembly to ensure that this significant investment does come to fruition," he said.
"One of the key priorities of the new administration is to increase employment opportunities and encourage business growth throughout the city.
"We support private sector companies who wish to take advantage of the huge potential we have in Newport and we have an excellent record in attracting jobs in the financial, business and manufacturing industries within the city," he added.