THE film studio responsible for franchises such as Star Wars and James Bond is pulling out of Wales.

The Pinewood Studios facility in Wentloog was opened in January 2015, and was used to film productions including the BBC's Sherlock, among others.

At the time it was hoped the facility would generate £90 million for the Welsh economy - but last year te Welsh Government announced this figure was unlikely to be achieved.

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And today the organisation has announced it will move out of the studio at the end of March next year.

Chairman of Pinewood Group Ltd Paul Golding said: “Pinewood is known across the world as a leading-provider of studio space, and the last decade has seen the value of film and television production in Wales more than double.

"Wales now has a robust and mature market, with the three main studios in Cardiff currently running at capacity. Our decision will enable us to concentrate on our growth plans, including our extensive expansion at Pinewood and Shepperton Studios.”

The Welsh Government's deputy minister for culture, sport and tourism, Lord Elis-Thomas, said: "We have worked closely with Pinewood throughout their time in Wales and utilised the company’s industry knowledge to get the best economic outcomes for Wales and make it a thriving and established location for filmmakers.

"Pinewood leaves Wales to concentrate on its own growth plans at Shepperton at a time when all three studios in South East Wales, including Wentloog, are operating at full capacity, with productions such as His Dark Materials and Brave New World.

"We are proud of our association with Pinewood and over the last five years our vibrant creative industry has seen film and TV productions funded by Welsh Government - including those made by Pinewood and Bad Wolf - spending in excess of £100 million in Wales, creating over 2,000 full time equivalent job years here and benefiting local supply chains and hundreds of businesses."

All productions currently in progress at the studio will continue.