Around 25 staff will remain at the Wrexham facility

Redundancy talks are beginning at the Llay industrial estate-based Meritor plant, where trailer axles and suspension systems are made.

Its US-based parent, ArvinMeritor, said it had identified alternative sites. The company said the situation was "undesirable and difficult".

The union Amicus hopes to hold talks with the company on Tuesday.

In a statement on its website, the firm said a final decision would be announced soon, but it did not reveal where the other sites were.

'Business need'

The company said "about 199 employees responsible for trailer axle and suspension assemblies at the Wrexham facility will be potentially affected by this process".

It added: "In addition to the potentially affected manufacturing and functional employee base, approximately 25 employees will remain at the facility providing product design, engineering, sales and business support to its customers until alternatives are found."

The website quoted Sergio Carvalho, vice president and general manager of CVS Trailer Systems as saying: "This is an undesirable and difficult position for our business and our employees.

"The decision to open a redundancy consultation process with employee representatives is based upon the business need to more closely align ourselves to the needs of our current and future customers."

'Difficult to help'

Amicus regional officer for north-east Wales, Graham Rogers confirmed the threat to jobs.

Mr Rogers hopes to meet managers at the factory on Tuesday afternoon, but said he could not comment further until had spoken to them.

Wrexham MP Ian Lucas said he had received "a one-line letter" about the situation on Friday.

"It makes it very difficult to help in any way when companies don't reveal the full position to you," he said.

"Unfortunately the workforce, which has worked for this company for many many years, have had this announcement put on their plate just before they have gone on holiday, but we will do all we can to safeguard as much employment as we can on that site."