He will meet management and Transport and General Workers' Union representatives at Krupp Camford Pressings in Llanelli to talk about the agreement to cut £2m from production costs.

BBC Wales's Laura Jones: "The union said the visit will have boosted the confidence of the workforce."

Last month workers at the plant agreed to pay cuts in a bid to lower production costs and save their jobs.

"New Labour and the Assembly is all about partnership. The management and the trade union has come to an agreement over reorganisation within the plant, a process best left to the two sides involved," said Mr Michael, who is contituency Assembly Member of Mid and West Wales..

"Now seems to be the appropriate time for discussions with the people involved and to work in partnership to ensure the long term future of the plant."

Mr Michael said he was keen to see an employer like Krupp stay in Wales.

Alun Michael's visit has been welcomed at the plant

"Krupp Camford Pressing is an important employer of high-skilled jobs in Llanelli and I am anxious that such jobs are not only kept but hopefully increased in Llanelli," he added.

Brian Francis, Managing Director of Krupp Camford Pressings, said he saw Mr Michael's visit as a positive sign.

"I am delighted he has not only found time to visit and discuss the long-term future of the plant with us, is keen to develop a working partnership with us.

"The climate created bodes well for the plant and the town of Llanelli," he said.

TGWU Regional Secretary Jim Hancock said: "Alun Michael's timing is much appreciated.

"This can only give a sense of confidence to the workforce who have made difficult but, in my view, correct decisions in the last few weeks."

Important contracts lost

Union officials last month accepted that the factory was in serious economic difficulty after the loss of important contracts, notably Rover.

The workforce accepted changes which reduced labour costs, and secured the future of the plant.

As part of the deal, the company agreed a £7m investment programme, which is expected to lead to the creation of 45 jobs.