Tweet
A Swansea-based ready meals plant, Ethnic Cuisine, is set to be closed down, putting 234 jobs at risk.Owner Northern Foods said it had decided to close the factory after failing to agree terms to supply products to major customer Sainsbury.
"Accordingly, we will be commencing consultation with employees on a proposal to close the site," the firm said in a statement.
Northern Foods acquired the Swansea factory in November 2007.
The firm said it had "continued to invest in the site to improve its infrastructure and capabilities" since its purchase.
The Swansea-based company, based on an industrial estate in Winch Wen, was founded in 1994 by Malaysian-born businessman Yow Meng Yap, with a workforce of 40.
Mr Yap, who was presented with an honorary OBE in 2007, grew the workforce to 400 within 10 years, making chilled Chinese ready meals for Sainsbury.
Llansamlet councillor June Evans said the news came as a "shock"
"It's very disappointing. There are a lot of local people there - it's going to have an impact certainly."
Leeds-based Northern Foods also makes Goodfella's pizza and Fox's biscuits, as well as a wide range of ready meals, at sites in Carlisle, Grimsby and Sheffield, employing more than 2,000 people.This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.