Up to 600 jobs could be created at a new car parts factory in South Wales, it was reported today.

Japanese firm Toyoda Gosei is planning to open a plant in Swansea, the Western Mail said.

The Welsh Assembly Government refused to comment after the paper reported that its inward invest agency International Business Wales (IBW) had been negotiating with the company.

It is understood Toyoda Gosei is planning to occupy the former Valeo car components plant in Gorseinon which closed with the loss of more than 300 jobs in 2001.

Property agents handling the site confirmed it was sold recently, but declined to name the buyer.

Chris Sutton, a partner at the Cardiff offices of property agents King Sturge, said: “It’s no comment on the specific of Toyoda Gosei, but I’m happy to confirm that King Sturge were retained to market the property and the property has recently been sold.”

The news comes after it was announced that 900 jobs are likely to go at a car parts factory on the outskirts of Cardiff.

German manufacturer Bosch last week said it was planning to close an alternator plant in Miskin after no new business could be found.

The division in charge of it will recommend to the company’s board that it pulls out. Production will be moved to and phased out in Hungary.

Deputy First Minister Ieuan Wyn Jones has said the Assembly Government did everything it could to save the factory.

Mr Jones, the economy minister, yesterday told AMs in Cardiff Bay it was difficult for Wales to compete with the low costs available in Eastern Europe, India and China.

The Plaid Cymru leader, who led a trade mission to Japan in 2008, has called for an end to a “grants culture” of using big one-off handouts to attract foreign investors.