500 Aiwa jobs 'safe'.

Byline: EMMA PEARSON

RUMOURS of the loss of 500 jobs at Aiwa's Welsh plant were quashed last night.

Reports that the factory at Newbridge, near Newport, faced shutdown were unfounded, said Deputy First Minister Mike German.

The scare began when the Japanese electronics firm issued a statement from its Tokyo HQ warning of huge cutbacks in its workforce worldwide, with 5,000 jobs under threat.

But Mr German said: "The company has confirmed they are going to restructure but there's no change in direction for Aiwa Wales.

"They are still moving towards contract electronic manufacturing - manufacturing for other third parties - at the Newbridge site.

"Subject to the normal pressures on being able to get orders and so on, then clearly the business is secure and jobs are secure at Newbridge."

The Welsh Assembly and the Welsh Development Agency have been working on an aid package for Aiwa since it hit difficulties.

"This will further strengthen their hand and the company will hopefully expand in the long-run," Mr German added.

A GMB union spokesman said Aiwa had assured him that the closure rumours were untrue, adding that the workforce had been "unnecessarily alarmed".