Elkay Electrical in Newtown is to close by the end of the year with up to 40 jobs being lost.
The Welsh Government says senior managers of the company declined an offer to discuss further potential avenues of support, in a bid to try and save the facility.
Montgomeryshire AM, Russell George said, "I am extremely saddened to hear the confirmation of the closure of Elkay Electrical; this is devastating news for everyone affected. This will be a particular blow to the community and on the run-in to Christmas, really doesn’t come at a worse time."
Staff are understood to have been issued with redundancy notices .
The contractor to build the Newtown bypass has been announced. Alun Griffith Contractors Ltd will build the 5.6km road around the mid Wales town.
The Welsh Government say the new road will help to "improve safety, reduce congestion and improve journey times around the town."
Newtown has suffered with congestion for many years, especially during summer months with holidaymakers travelling through the area.
I am delighted to be able to award the contract for this very important project, which will improve the quality of life for the people of Newtown and improve journey times and safety along the A483 and A489.
It is also encouraging to see that a Welsh company has won this tender, which will help safeguard Welsh jobs and result in money staying in the local economy.”
Glyn Davies, MP for Montgomeryshire, said that the web is vital for businesses in rural towns such as Newtown.
Newtown is proud of its Google eTown award and I'm delighted to represent an area that has truly embraced the internet to help their local businesses to flourish. The internet is going to play a key role in Newtown's economic growth, helping local businesses and entrepreneurs thrive.
– Glyn Davies MP
Website success has meant that Darren Jones and his wife have expanded their villa rental business. They started it as a sideline, when they both had full-time jobs, in 2005. Since then they've been able to buy two more villas and it continues to grow.
I would recommend to businesses of all types - regardless of their product or service - get online to take advantage of the online marketplace.
Research looking at the levels of business usage of the internet has named Newtown in Powys as one of the most successful town in the UK. Google has created the eTowns Awards to recognise towns whose businesses are most actively embracing the web.
Last year saw the roll out next generation broadband to the area, and since then tech-savy small businesses have taken advantage of the growth opportunities that the web can provide.
Thirty jobs have been lost at a construction firm in Powys. JU Bowen, based in Newtown, went into administration before Christmas.
According to administrators, PKF, the company was forced to close after failing to find enough new work for the winter.
The business was forced to close because it had recently completed a major housing contract and couldn't find enough new work elsewhere to keep going. The work the company performed for the Environment Agency Wales also stopped over the winter period, as in previous years.
The directors recognised that the company could not fund trade through the winter and had to make the difficult decision to close down and make all staff redundant.
As administrators, we are now making every effort to recover the company's debts and equipment, and to assess development opportunities on the land that it owns.
A replacement bus service is running on Arriva Trains Wales between Machynlleth and Newtown (Powys) due to flooding at Caersws. Journey times will be extended by up to 30 minutes. There is no current estimate for when a normal service will resume.