UPDATE: 5.04pm

A spokesman for Mabey Bridge confirmed that 150 jobs at the firm's site on Station Road in Chepstow have entered a consultation period and are at risk.

He added that the renewables site at Newhouse site, where 180 people are employed, is being put up for sale as a going concern. the firm aims to sell the site to "someone who can accomodate those jobs."

There are 140 jobs currently at the company's Lydney site.

UPDATE: 4.26pm

UP TO 200 jobs are at risk after a Gwent engineering firm announced the closure of one of their plants in Chepstow.

Mabey Bridge spoke to employees today to confirm the closure of their infrastructure division. The Argus undertands that between 150 and 200 jobs are at risk.

Workers were also told that the company's renewables division and their Newhouse site were set to be put up for sale.

In a statement, the firm said: "We have not made these decisions lightly and we understand that this is a very difficult time for our people. Their welfare is an important concern for us and we will provide them with as much support as possible over the coming weeks.

"A full consultation process will be conducted with all those affected and we will make every effort to provide them with as much information as possible. We are also committed to listening to their views about the proposal.

"The proposal follows a comprehensive review of the Mabey Bridge business, and like many companies we are forced to consider every possible option to remain competitive in difficult times.

"We are confident that these proposed changes will help build a stronger, more sustainable future for Mabey Bridge’s modular bridge business in Lydney."

The leader of Monmouthshire council, Peter Fox, said: “I am very surprised to hear this and saddened that Mabey Bridge have had to come to this position.

“I will be talking about this with our economic development team see if there is any help we can give to any individuals concerned.”

Monmouth MP David Davies said: “I am very surprised, astonished and horrified. I met with them two months ago and there was no mention of this. It is a bolt out of the blue and is of great concern.

“I will try to find out more as quickly as I can.

“I have been working with them and this has never come up in the conversation.

“Also, when I last met with them they were keen to talk up their connection with Chepstow.”

Thornwell councillor Armand Watts, whose ward covers the Newhouse site, said: “It is devastating for Chepstow – and just before Christmas. I will be requesting a briefing from them about what they intend to do.

Referring to the timing of the announcement, he said: “I would go as far to say that it is cold of them.”