JOB cuts have been made at a company just months after the completion of a £2.7million expansion project funded by the Welsh Government.

The Magstim Company Limited of Whitland has a global reputation for manufacturing sophisticated medical devices and last October saw its expanded headquarters in the town opened by the First Minister of Wales, Carwyn Jones.

The state-of-the-art facilities employ more than 100 people and the devices made are used in neuroscience, psychiatry and ENT surgery.

However, a fortnight ago, workers were informed by managing director John Mullen that the US-owned company had "seriously failed to deliver" on its goals and that a plan for major cost reductions had to take place to return the business to profitability.

It was originally thought that up to 20 permanent positions in the organisation would be lost, but Mr Mullen said this week that the final figure, which included some voluntary redundancies, would be less than this.

He told the Western Telegraph: "Magstim had been investing heavily in developing new products in the belief it would be able to achieve very rapid growth in the near future.

"As well as adding extra contractors to try and accelerate development, we had also taken on quite a few extra permanent staff in anticipation of that growth.

"The reality is that, while we are, and will continue to grow steadily, we couldn't support the level of cost which had been added.

"So what we have had to do now is go back to basics and reduce our costs back to a level which is consistent with the sales growth we can see ahead of us."

Mr Mullen, who took over as Magstim MD in November, a dded that the actions were necessary to protect the future of existing jobs and the business overall.

Mr Mullen assured that he had been in regular contact with the Welsh Government throughout the process.

He continued: "The grants provided have supported Magstim's growth to this point, in line with agreed employment targets.

"Any future funding will need to be in line with future growth goals as agreed by Welsh Government.

"While Magstim has had to adjust to its product development challenges, it remains committed to supporting employment in the local community of Whitland and the west Wales region, and will always look to re-employing those affected first."

A Welsh Government spokesperson said: "We have been made aware of the situation and are currently in discussion with the company to support affected individuals."