Sofa firm moves jobs to Lithuania

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More than 110 jobs are under threat at a sofa-making company in Pontypridd planning to transfer work to Lithuania.

Cameo Sofa Company, formerly Christie Tyler, wants to end production at its Treforest plant.

The firm, which is owned by Sofa Brands International (SBI), has issued unions with 90 days' notice of consultation.

Meanwhile, in a separate south Wales announcement, law firm Kings Legal has announced the creation of 50 jobs at new offices in Newport.

Cameo began upholstery manufacturing in Treforest in 2005 but says it wants to end by July this year.

Under the proposals, Cameo said its supply from SBI's Lithuania factories will be increased, the management and production of Parker Knoll products will be transferred to SBI's Derwent Upholstery in Riddings, Derbyshire and a restructured company will move to new premises in Cardiff.

The firm currently employs 182 people, with about 35 jobs to be retained or created locally, it said.

A further 30 job transfers to Derwent Upholstery have also been proposed.

In a company statement, SBI said the decision to consult on the closure of the Treforest factory followed "considerable efforts" to find a viable structure to make it profitable.

The GMB union claimed as many as 156 people could be made redundant, described the announcement as "a major loss to south Wales and the manufacturing industry" and vowed to campaign in support of its members.

<li></li>Kings Legal said its decision to relocate from smaller premises in Cardiff to Newport had allowed it to expand its team.

The move will be aided by a grant from the assembly government.

The firm works primarily for insurance companies including AXA, Co-operative Insurance Society, Zenith Insurance and Zurich and mortgage providers.

Deputy First Minister Ieuan Wyn Jones said the expansion would provide a boost to financial and business services in the region.

"Kings Legal has enjoyed rapid growth since its creation less than two years ago and this latest project will be a springboard for the future development of its very successful business," he said.