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Workers at the TRW site in Resolven had offered to take a cut in earnings
A factory employing 225 staff making steering parts for cars is earmarked to close, its owners have announced.
TRW Automotive said it was considering transferring work from its plant at Resolven near Neath to other sites across Europe.
The US-based company said the plant had been making a loss for several years and it was consulting staff about closing early next year.
Economy Minister Ieuan Wyn Jones called TRW's move "extremely disappointing".
TRW said the proposed closure was due to "significant overcapacity" in Europe.
Neville Rudd, operations director for TRW steering in Europe, said: "This situation has worsened as a consequence of the reduction in overall vehicle build in Europe following the global economic crisis.
"We urgently need to take action to improve the overall competitiveness of our steering systems business.
"To make this proposal wasn't an easy decision and we have reviewed all possible alternative solutions."
He added: "Regrettably, this plant has been loss-making for several years despite our efforts working to improve the cost base.
"We will now work to support our employees through this difficult period of consultation."
Neath MP Peter Hain said the workforce had been willing to make "tough and brave" cost savings which would have hit their earnings by more than 15% and possibly more if a guarantee had been given that Resolven had a future.
He said: "The problem was that other TRW European plants, including in Germany, Spain, France and Italy, were also volunteering pay reductions and government support.
"In the end it was a dog-eat-dog situation. Every time Resolven offered a new cost saving, one of the continental plants would trump it - or so management have maintained."
'Bitter'
Mr Hain said Neath Port Talbot council (NPT) and the Welsh Assembly Government had offered funding to keep the factory open and he had been involved in negotiations with the company and unions over the past nine months.
He said he was "bitter and frustrated at the outcome" adding that it was a "body blow" to surrounding communities.
Gareth Jones, of Unite union's Swansea office, said he is due to meet TRW management on Friday morning.
He said: "We were aware the company was rationalising operations and that Resolven was included in the review.
"A decision was expected but we're disappointed that it is the total closure of the site."
'Terrible news'
Unite plant convenor Andrew James said workers had made offers to the company to try to keep the factory open.
"We've suggested wage cuts, pay freezes and longer hours but they were all turned down," he said.
"We've been competing with other Spanish, German and Italian plants. They've been taking work from us. It's terrible news."
Economy Minister Mr Jones said his officials and NPT had sought to back managers' plans to keep the plant open, including the offer of grant support.
He said: "TRW management acknowledges the serious attempts made to support the Resolven plant but are not able to find an alternative proposal that makes economic sense.
"We very much regret the news this afternoon and recognise the potential effects on the employees, their families and the communities in the Neath Valley."
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Workers at the TRW site in Resolven had offered to take a cut in earnings A factory employing 225 staff making steering parts for cars is earmarked to close, its owners have announced.
TRW Automotive said it was considering transferring work from its plant at Resolven near Neath to other sites across Europe.
The US-based company said the plant had been making a loss for several years and it was consulting staff about closing early next year.
Economy Minister Ieuan Wyn Jones called TRW's move "extremely disappointing".
TRW said the proposed closure was due to "significant overcapacity" in Europe.
Neville Rudd, operations director for TRW steering in Europe, said: "This situation has worsened as a consequence of the reduction in overall vehicle build in Europe following the global economic crisis.
"We urgently need to take action to improve the overall competitiveness of our steering systems business.
"To make this proposal wasn't an easy decision and we have reviewed all possible alternative solutions."
“Every time Resolven offered a new cost saving, one of the continental plants would trump it - or so management have maintained”
Peter Hain Neath MP "We will now work to support our employees through this difficult period of consultation."
Neath MP Peter Hain said the workforce had been willing to make "tough and brave" cost savings which would have hit their earnings by more than 15% and possibly more if a guarantee had been given that Resolven had a future.
He said: "The problem was that other TRW European plants, including in Germany, Spain, France and Italy, were also volunteering pay reductions and government support.
"In the end it was a dog-eat-dog situation. Every time Resolven offered a new cost saving, one of the continental plants would trump it - or so management have maintained."
'Bitter'
Mr Hain said Neath Port Talbot council (NPT) and the Welsh Assembly Government had offered funding to keep the factory open and he had been involved in negotiations with the company and unions over the past nine months.
He said he was "bitter and frustrated at the outcome" adding that it was a "body blow" to surrounding communities.
Gareth Jones, of Unite union's Swansea office, said he is due to meet TRW management on Friday morning.
He said: "We were aware the company was rationalising operations and that Resolven was included in the review.
"A decision was expected but we're disappointed that it is the total closure of the site."
'Terrible news'
Unite plant convenor Andrew James said workers had made offers to the company to try to keep the factory open.
"We've suggested wage cuts, pay freezes and longer hours but they were all turned down," he said.
"We've been competing with other Spanish, German and Italian plants. They've been taking work from us. It's terrible news."
Economy Minister Mr Jones said his officials and NPT had sought to back managers' plans to keep the plant open, including the offer of grant support.
He said: "TRW management acknowledges the serious attempts made to support the Resolven plant but are not able to find an alternative proposal that makes economic sense.
"We very much regret the news this afternoon and recognise the potential effects on the employees, their families and the communities in the Neath Valley."
This article is from the BBC News website. ? British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.