2 Sisters Food has confirmed plans to close its Avana Bakeries facility in Wales, putting 650 jobs at risk.
The company announced in February that it will shut the factory as it lost a major cake contract with Marks & Spencer.
It then launched a 45-day consultation with staff.
Avana Bakeries was quoted by BBC as saying, "During the consultation, we have fully explored all the options available to us since losing what was the principal customer contract for the site.
"Our priority now is to minimise the number of compulsory redundancies through seeking volunteers and redeployment elsewhere."
Newport West AM Rosemary Butler said that the news that Avana Bakery has confirmed that it is to close with the loss of 650 jobs is absolutely devastating for all involved.
"Having spoken to senior management I understand it will be a phased closure with no jobs being lost in the immediate future. However, the losses are due to start towards the summer of 2014," added Butler.
