Ford’s engine plant in Bridgend is set to close in autumn 2020, with the loss of 1,700 jobs.
Staff at the plant have been sent home after receiving a letter, which says they will lose their jobs in phases from autumn next year.
Ford blamed “changing customer demand and cost” for the closure plans however they denied Brexit was a factor in their decision.
In a statement, Ford of Europe president Stuart Rowley said: “Creating a strong and sustainable Ford business in Europe requires us to make some difficult decisions, including the need to scale our global engine manufacturing footprint to best serve our future vehicle portfolio.
“We are committed to the UK. However, changing customer demand and cost disadvantages, plus an absence of additional engine models for Bridgend going forward make the plant economically unsustainable in the years ahead.”