A RENEWABLES factory in Chepstow which had been under threat since late last year will be axed after attempts to find a new buyer failed.

Up to 125 jobs are at risk after Mabey Bridge was unable to find a buyer for its Newhouse renewables division, which produces equipment for wind and tidal energy.

The bridge building firm said it had contact with more than 50 companies both home and abroad, including extensive discussions with one company for the last three months. But late last week talks broke down.

Monmouthshire council’s chief executive Paul Matthews and its deputy leader Cllr Bob Greenland held a meeting with senior Mabey Bridge staff earlier today.

The council's leader Cllr Peter Fox said: “It’s a terrible shame. We were all hoping that Mabey Bridge would have been able to source someone who have taken some people on.

“We are doing all we can to support the individuals and the company through what will be a difficult period for them. We want to create jobs, we don’t want jobs to move away.”

In December Mabey Bridge announced 330 jobs were at risk in Chepstow at their Station Road plant and Newhouse sites when it announced its intention to move all operations to Lydney.

It is understood there are still about 12 to 24 people working at Station Road in administrative jobs until the site is wound down, allowing existing orders to be completed from that site.

A consultation will last for 45 days although a start date for that has still to be confirmed.

Mabey Bridge’s chairman Juliette Stacey said: “This is not a decision that we have taken lightly and we understand that this is a very difficult time for our people. Since December 2014, we have made every effort to try to find a buyer.

“The uncertainty of market conditions for the UK onshore wind industry in the longer term has been a contributing factor.

“The priorities for us now are to support our affected employees in whatever way we can, and to ensure that the longer-term future of Mabey Bridge as a whole is secure. We will provide our people with as much information and support as possible over the coming weeks."

A Welsh Government spokesman added: “This is bad news and clearly comes as a direct result of the UK Government’s recent  announcement to end onshore wind subsidies.

"This has created uncertainty for the onshore wind industry and we warned of the possible consequences at the time.

"The Economy Minister has already been in contact with Mabey Bridge management to offer our further assistance to the company to help secure a suitable buyer for the Newhouse site and to offer support to current employees to help assist them into alternative employment or retraining.”