Rehau plastics factory in Amlwch announces closure plan

German-firm Rehau said more than 100 staff could be made redundant at its facility in Amlwch

A plastics factory in north Wales is at risk of closure due to a 70% decline in demand for its products, company bosses have said.

German-firm Rehau said more than 100 staff could be made redundant at its facility in Amlwch, Anglesey.

A spokesman for the firm said it would launch a 90-day consultation period before announcing a final decision.

Anglesey's Assembly Member Rhun ap Iorwerth described the news as a "devastating blow" for the island.

The announcement comes six days after the news that Japanese firm Hitachi put its plans to build a new nuclear power station on hold.

Plaid Cymru AM Mr ap Iorweth said: "These jobs are vital and it's an especially bitter pill to swallow given the news about Wylfa Newydd suspension last week.

"I will be seeking an urgent meeting with representatives at the Rehau facility and will also be contacting Welsh Government to make the case for significant investment in the island's economy."

Rehau said the Amlwch factory's main manufacturing focus was a type of polymer called PVC Edgeband, which is used on desks and furniture.

However, demand for the material has plummeted, contributing to a "more than 70% reduction" in demand for the firm's products, a spokesman added.

"With no sign of this demand recovering, and further investment in Amlwch or utilisation of the site for the manufacture of alternative products impossible due to space restrictions, we have taken the difficult decision to propose the closure of the site."

Ynys Mon councillor Richard Griffiths told the Local Democracy Reporting Service: "Rehau has been synonymous with Amlwch for 50 years and has been a major employer in the area.

"This has come as a bolt from the blue and is very distressing news."

Rehau said its other factory in Blaenau Ffestiniog would not be affected.