Ambulance manufacturer UVG (Ambulances) has gone into administration with the loss of more than 100 jobs.
The Brighouse firm, which is Britain's biggest manufacturer of emergency vehicles, had an annual turnover of £15 million.
Receivers Ernst & Young say they are hopeful of finding a buyer for the business, which has struggled with debts.
Just a few months ago the firm shut its production plant near Cardiff with the loss of 100 jobs.
A further 128 staff have now been made redundant in an attempt to cut costs and keep the business from sinking.
The firm has been badly hit by a string of NHS decisions to buy emergency vehicles from foreign manufacturers in France and Germany.
The firm, which was set up in the 19th century as a coach and carriage builder, even made an open carriage for Queen Victoria's visit to Huddersfield - which gained it a Royal Warrant.
During the last decade the firm became one of the largest ambulance manufacturers in the world, exporting 25 per cent of its production to Europe, the Middle and Far East.
The Welsh production site was acquired by the firm in 1996.
The factory was modernised and extended in 1997 with the installation of a state-of-the-art paint plant.
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