Creative Outsourcing Solutions International (Cosi), which makes beauty products on contract, announced in January plans to double its turnover over the coming three years.

However, trading proved difficult over the summer months forcing the company to cut 92 jobs at its factory in Maesteg, Wales, where it had completed a £9m expansion plan earlier in the year.

The firm, which is still in discussions with the union GMB over the job losses, announced yesterday that it would not be renewing the contracts of 150 further employees.

In addition to the lower than expected sales figures Cosi was hit recently by the decision of a large US customer not to renew its contract with the struggling company.

Chief Operating Officer, Stephen Bracegirdle, said the company is facing a number of serious challenges and that they were fighting hard to keep the jobs in Maesteg.

The company was reluctant to blame market conditions for the current situation and is currently working hard to consolidate its operations and set itself on the road to recovery.

At the beginning of the year, Cosi spent £9m expanding its production site in Maesteg, which it obtained from Revlon in 2001.

The move was part of the company's plan to double its turnover in the next three years in order to set it apart from its industry competitors but the future of the plant is now in question.

The Maesteg development plans were supported by the Welsh Assembly Government through regional selective assistance, and it was hoped that the investment would create a further 300 jobs in the area.