HUNDREDS of homes are set to be built in Newport as part of a £40 million plan for the site of the former Panasonic factory in Duffryn.

Over 225 houses will be constructed on the 18.5 acre site, which was home to the Panasonic electronics plant until it closed in late 2012.

Andrew Crompton, of housebuilder Persimmon said the homes would “suit a range of customers” including first-time buyers and “families seeking more space.”

Chris Sutton of agents JLL, who worked to arrange the sale of the site for housing said there were limited options to re-use of the factory. He added they worked “closely” with Newport City Council to secure planning permission within a “short period of nine months” to turn the site over to housing.

Carol Jones of Panasonic welcomed the news, saying “Panasonic successfully operated from the Duffryn site for over 25 years and the company is pleased to see that the site has now attracted a fresh round of investment for the city of Newport.”

Panasonic had been based at the Duffryn site since 1987 and at its peak employed more than 600 people. But by March 2012 that number had been reduced to 251, before it was announced a further 164 jobs were to be axed at the plant due to the production of telephone exchange systems being moved from the site to Vietnam.