Irish firm Quinn Group has postponed plans to build a new factory alongside its existing building in Newport, south Wales, due to the struggling economy.
The planned plant, which would have created 340 jobs and produced insulation panels, was due to be operational by the start of this year.
“Because of the way the economy has gone we have decided to lay off,” explained a spokesman for the company. “We are going to lay off until the economy picks up. There is no point getting something up and running while the economy is slowing down.”
Newport councillor Matthew Evans said: “This scheme would have created hundreds of new manufacturing jobs in the city and we will continue to work with the company and the assembly to ensure that this significant investment does come to fruition.”
The firm has, however, provided no suggestion as to when the plans may resume.