THE PANASONIC factory which once employed 600 people could be turned into a 250-home development.

The electronics giant announced it was to pull out of its site in Pencarn Way, Newport, last November after more than a quarter of a century.

Newport politicians and Britain's biggest union, Unite, expressed disappointment as the company decided to transfer production of telephone exchange systems to Vietnam.

The plant unveiled in 1987 once employed more than 600 workers but announced the proposed closure after making dozens of job cuts.

Panasonic announced it was axing 164 jobs at the factory in March 2012 then proposals to cease production all together in November putting another 53 jobs at risk.

But now planning consultancy Nathaniel Lichfield and Partners, which provided advice on the London Eye and Wembley Stadium, is to consult the public on the proposed development, which could comprise up to 250 homes.

If approved, the plans could expand one of the largest housing estates in Newport, Duffryn Estate.

An application lodged to Newport City Council this month [May 16, 2013] made a "request for screening opinion for a residential development of up to 250 dwellings".

Panasonic said it planned to close its Newport factory by March 2013 owing to the "ongoing severe economic environment and resultant weak sales demands".

The loss-making company with headquarters in Osaka, Japan, unveiled a "social plan" including financial support, advice and outplacement assistance for affected workers.

But Unite regional co-ordinating officer, Bryan Godsell, said employees at the site were both "shocked and stunned" by the announcement.

Newport West MP Paul Flynn expressed "disappointment" and Newport council leader Bob Bright said he was "extremely disappointed" but pledged to continue to work with Panasonic to secure a new tenant at the site.