A CAR sales firm says it will be forced to abandon plans to expand its site in Tredegar, after negotiations broke down with the council.

Ron Skinner and Sons planned to make its base on Tafarnaubach industrial estate “one of the biggest car sales sites” in Wales, with the scheme promising 70 new jobs.

Philip Skinner, managing director of the business founded in Tredegar, said the firm will now have to look to open the planned storage and distribution site elsewhere.

But he said they had wanted to expand the business in Blaenau Gwent and described the setback as ‘devastating.’

The plans to expand the Tredegar site were drawn up three years ago as part of the company’s five-year business plan.

Mr Skinner said it includes a proposal “to develop one of the biggest car sales sites in the country in Tredegar.”

The scheme has hinged on negotiations over a road near to the car sales business, which Ron Skinner and Sons want to buy and flatten to create a larger site.

While there appear to be no objections to the plan, negotiations over the valuation of the road have broken down.

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Mr Skinner said the firm had to make its “final decision” last Friday, but he said they had no response from the council.

“Unfortunately the scheme has fallen through,” he said.

“The difference between us and them is around £10,000.

“We have lost the potential to expand, and they have lost 70 new jobs created in Blaenau Gwent.”

While keeping its current base in Tredegar, which employs around 170 people, the firm says it will have to look to another part of Wales for its expansion.

It was looking to take on an additional 20 technicians, create a larger storage centre for cars, and double the size of its transporter fleet.

Mr Skinner said they had “wanted to keep the jobs in the valleys.”

“It is devastating for us,” he said.

“We have tentatively been interviewing people for the new jobs as well.

“We are going to have to stand back and regroup and see where we go from here.”

Tredegar councillor Steve Thomas, who is also the council’s Labour group leader, said he was “mystified and really disappointed” by the news.

“I am absolutely gutted we could be losing those jobs,” he said.

“It makes no sense at all.”

A spokesman for Blaenau Gwent council said: “The council is committed to supporting local businesses and has provided Ron Skinner and Sons with significant levels of advice on planning, highways and land sale matters in the past.

“It is regrettable that the negotiations with Ron Skinner and Sons has come to an end over its proposed Tredegar site expansion.

“However, the council has a legal and commercial duty to get market value for any land it sells, and this has been its position in all negotiations with the company.

“The decision to end the expansion plans and review the Tafarnaubach site is a commercial decision for Ron Skinner and Sons and not a council matter.”