Japanese carmaker Nissan has it will not close its Avila plant in Spain, although it will run at less than 50 percent capacity for at least three years.

The Avila plant, which is one of several operated by Nissan in Spain, has been functioning at a fraction of its capacity since 2008, with management in constant discussion with union representatives about production and job cuts.

It now appears 300 of the factory's 650 employees may be laid off.

The plant, equipped to turn out 26,000 vehicles per year, is likely to only produce 11,000 units per year over the next three years.

Spanish demand for cars collapsed when the country slumped into recession in late 2008.