The Driver and Vehicle Licensing Agency (DVLA) has announced it will be creating an estimated 450 jobs at its headquarters in Swansea.
At the same time the company has announced it is closing 39 of its regional offices will close putting 1,200 jobs at risk across the UK. Branches at Swansea, Bangor and Cardiff are also set to close, but the company says the people working there will be offered work elsewhere.
The DVLA says the move is aimed to centralise, modernise and enhance the services it provides to motorists looking to carry out more transactions online. It is also expected to save the company up to £26m a year.
The Welsh Secretary, Cheryl Gillian, welcomed the news, while Mike Hedges AM said it would be great for Swansea and created much needed jobs for the area.
The announcement has, however, been criticised by members of the Public and Commercial Services Union who work for the DVLA. They say that they are expecting further cuts to be directed at Swansea HQ in future.