The owners of a car components plant in Llanelli that once employed over 1,000 workers say it could finally close with the loss of 100 jobs.
ThyssenKrupp Tallent, formerly Camford Pressings, has told staff it is looking at moving work to its other UK sites.
It said a final decision had yet to be made and it was unlikely any permanent employees would be made redundant before the summer.
The company blamed a significant fall in orders due to the current recession.
It is not the first time the future of the plant in Felinfoel has been under threat.
Three years ago the company held a 90-day consultation about closing it.
In a statement group HR manager Sue Boulton said: "It with great regret that the workforce of ThyssenKrupp Tallent's Llanelli plant were briefed on the possible closure of the site due to the significant fall in volume caused by the current recession.
"ThyssenKrupp Tallent has six plants in the UK all operating well below capacity with orders from customers down between 35% and 60%.
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