The Economy Minister says that the Welsh Government offered 'maximum allowable' financial help to the steel firm Rowecord. But Edwina Hart told the Assembly that the company decided to turn the offer down because of its 'worsening financial position.'
The minister said that Rowecord's management thanked the Welsh Government but felt that the maximum financial support was still not enough. She said officials are in contact with administrators to look at a rescue package and said that she would offer support to any potential buyers.
Economy minister, Edwina Hart, will make a statement to the Assembly this afternoon following the news that Newport-based engineering firm Rowecord is in administration putting 400 jobs at risk.
The Welsh Government has previously said it offered the firm assistance which was not taken up by Rowecord.
£4 million is being spent on helping nuclear energy workers in North West Wales back into work.
The funding aims to help 1,200 staff at the Wylfa and Trawsfynydd sites prepare for future careers.
Wylfa, on Anglesey, is due to stop generating electricity in 2014. Trawsfynydd has already closed, and is in the process of being decommissione d.
The funding comes from the European Social Fund, the Welsh Government, the Nuclear Decommissioning Authority and local councils. Workers will be given career advice, mentoring, training and job-search help.
Hopes for a new power station at 'Wylfa B' were set back last month when two leading power companies withdrew their plans for the site.