Plaid Cymru AM Lindsay Whittle has said there is a “glimmer of hope” for around 132 aluminium factory workers whose jobs are at risk.
Last month company Sapa said it was entering a consultation period with employees and unions on the closure of its Bedwas site because the UK market had “changed significantly”.
In a letter to AMs, Economy Minister Edwina Hart has confirmed the Welsh Government is in talks with bosses in an effort to save the jobs.
Ms Hart said that talks would go beyond the 45 day consultation period.
South Wales East AM Lindsay Whittle, who raised the issue with First Minister Carwyn Jones, has said the letter brings “hope” to workers.
He said: “There is a glimmer of hope because talks between the Welsh Government and the company will continue beyond the end of the consultation later this month.
“It is vital every effort continues to be made to save jobs. They are an important and long-standing employer in Bedwas and I hope the company will take up any offer of support from the Welsh Government.
“My thoughts are with the workforce who face an uncertain period over Christmas and the new year.”
In her letter, Ms Hart said: “My officials met with Senior Management on November 26 who confirmed that the official consultation period will end on December 28, but that negotiations will continue beyond that date for as long as is necessary.
“My officials outlined the key areas of support available to the company in order to safeguard and maintain an operation at Bedwas. The company confirmed that they will consider the offer of potential Welsh Government assistance and will regularly appraise my officials of any key developments.”
Around 132 jobs are at risk at the Pantglas Industrial Estate base.
Announcing the closure plan last month, Alan Couturier, Managing Director of Sapa Profiles UK said: “In light of the change to market conditions, our commitment to continue manufacturing in the UK remains strong. We believe that there is a need in the UK for a quality producer that can provide a level of service exceeding current customer expectations. Achievement of this goal is paramount in our future strategy.
“We recognise the impact that this announcement will have on our colleagues at Bedwas.
“We very much hope that we can find alternatives to the proposal to close and will put every effort into doing so.”
The factory, which makes aluminium extrusions, building systems and precision tubing, was first opened in 1971.
A spokesman for Sapa would not comment on the discussions with Welsh Government.