The news was broken to staff at AB Automotive Electronics in Cardiff at the end of last week.
The company, a subsidiary of Weybridge-based TT Electronics, blamed competition from the Far East and Eastern Europe for the move, making the Cardiff operation unviable.
It is beginning consultations, with the majority of redundancies made by March 2009, when any remaining business will be transferred to TT Electronics' site in Newport.
AB Automotive Electronics was founded in 1984 to manufacture an electrical system for Jaguar Cars in the UK.
The company's focus recently has been on climate control systems, with contracts including General Motors, PSA Peugeot Citroen and Renault