The Mail reported in December the business, based in the Burnmill area, was shrouded in mystery with rumours it had closed fuelled by owners Burt Boulton & Haywood (BBH) refusing to confirm or deny its status.
An official spokesperson for the Wel
sh-run company is yet to make any comment despite repeated calls to its offices.
But the employee who contacted the Mail claims the factory is to close in February with the majority of staff having already been made redundant just two days before Christmas.
The member of staff asked not to be named, claiming BBH had told employees not to speak to the press.
However, the insider confirmed 12 workers were laid off on December 23.
"The announcement came as a complete surprise," said the employee.
"The managing director came up to Levenmouth from Newport on October 28 last year and said the premises were shutting and everyone would be paid off for December 31.
"There were existing orders and no warning of any financial trouble as it wasn't as if the firm wasn't making money.
"To be honest after that everybody just kind of got on with it but on the last day some people were in tears."
In a final kick in the teeth the employee said senior management asked all staff to work overtime in the run-up to Christmas so the factory could be closed down sooner and, in the end, had to keep five people on temporarily.
"There was a general sense of being treated fairly shabbily, the member of staff admitted.
"Some people had worked there straight from school and for over 30 years and knew no different.
"A production manager, one other employee and three security personnel were all kept on but they will be getting paid off by February 28 when the factory ceases operating."
The creosote works is one of Levenmouth's oldest businesses and specialised in preserving a range of timber products such as telegraph poles and railway sleepers amongst others for over 100 years.
