THE 'white elephant' former LG Semicon plant could be transformed into an international arena, says the chief executive of Newport's regeneration company.

The aim would be to attract top conventions and major events. Newport Unlimited held talks with international companies to attract a buyer for the vacant site in Castleton.

The plan, still very much in its early stages, could see the 100,000 sq m building turned into an arena or conference centre, modelled on Birmingham's National Exhibition Centre.

Newport Unlimited's chief executive John Burrows said: "We want to make the building the centre of a much more exciting development in the west of Newport. It has great potential for an arena or exhibition centre.

"We have had consultants look at it. They have done drawings and potential costings."

He said the plan was "more than a twinkle in the eye" but said there was a long way to go.

"It's an enormous building built to very high standards. A plan like this requires a lot of money and we need to look at ways of how that could be brought in," he said.

"We have got to find an operator who could make it work with a lot of money.

"We have sold the idea to quite a few people.

"We haven't got anything at the moment that's definite but we have had discussions with various interested people."

The plant was touted as one of Europe's biggest ever inward investments when built by Korean electronic giants LG Semicon for £131 million in 1996.

At the time LG pledged to create 6,000 jobs in Newport and it was billed as a major investment coup.

But the semiconductor plant, later owned by Hynix, was never brought into full production.

Hynix, formerly known as LG Semicon Wales Ltd, was given £87.1m in grants to help open its Newport site nine years ago.

Last year, Wales clawed back a final £17m instalment from the firm, which has already handed over land worth £6.65m, and £13m of cash.

Terms of the agreement between Hynix and the Welsh Development Agency mean the Assembly-sponsored public body recovered the whole £36.65 million it contributed to assist the ill-fated project.

The Welsh Development Agency have been marketing the former Hynix site, trying to find a potential buyer.

Marshfield councillor Bill Pursey said: "I think it's an absolutely brilliant idea.

"I would definitely support it rather than seeing the building deteriorate over the years.

"It would bring badly needed employment to the area.

"It's an ideal location for any enterprise along those lines and good for Wales to have something like that."