A desperate bid is being made to save more than 70 jobs at one of north Pembrokeshire's largest employers.

Bill Preece, chief executive of St Davids Assemblies, which makes temperature control switches for cars, kettles and other appliances, warned last week that the factory could close by spring 2007.

He blamed cheaper competition from abroad and said that after 55 years of trading in St Davids this was a "desperately sad situation".

St Davids Assemblies has seen staff numbers drop from 180 to just over 70 over the last few years.

One of its main customers, Otter Controls, transferred work to lower-cost countries.

A bid to diversify has not brought in enough to replace lost business.

Said Mr Preece: "Unfortunately the circumstances in which we find ourselves are typical of many British companies who simply cannot compete with Eastern Europe and the Far East."

A 30-day consultation process with staff has begun. Local AM Tamsin Dunwoody, deputy minister for economic development and transport, (pictured inset) said: "This is a hugely significant blow for the area."

"Two years ago I worked closely with St Davids Assemblies and they fought very hard attending trade fairs and exhibitions, taking their products to an international market."

Tamsin, who has raised the closure with the minister for enterprise, innovation and networks, Andrew Davies, said: "There is still a chance another company may come on board to buy the company out, but it is essential we start planning for any job losses."

Local MP Stephen Crabb said: "It is an extremely sad day for the city and its people.

"The factory has been an integral part of the community for more than 50 years and the lost jobs will not be easily replaced. The closure of the factory is yet another example of the continuing decline of manufacturing industry in the UK."