Motor parts manufacturer Bosch is to close its south Wales plant, where 900 people are employed.
This decision follows three months of consultation at the German-owned company.
The firm said in a statement that it has recommended to the board that work be transferred to Hungary in 2011. But consultations will continue until February, as unions discuss redundancy terms.
The company said that the recession had "left its mark on the Bosch Group". In 2009, sales of products made at the site in Wales were down 45 per cent from 2008.