The plant in Llanelli has a workforce of about 1,000

Calsonic Kansei is one of Llanelli's biggest employers with a workforce of around 1,000.

The Japanese-owned company confirmed on Thursday it is to base its headquarters in Paris.

Calsonic said the changes would affect a small number of employees who would be offered the chance to transfer.

The company is moving its headquarters to be closer to its European clients, in particular Renault.

European president David Pallas said the changes would happen within two years.

He said a research and development centre would be established in Paris to compliment the one in Llanelli.

"This major new investment is to support significant new business opportunities in mainland Europe and in particular with Renault," said Mr Pallas.

"Such close collaboration with Renault requires the establishment of such a facility near Paris.

"The current employees in the headquarters will be given opportunity to transfer to Paris.

"The manufacturing operation based on the same site in Llanelli is unaffected by these changes."