About 120 million cigarettes are made at the factory everyday

The company confirmed on Wednesday it intended to shut the site by the end of 2004 with work transferred to a larger plant at Southampton.

Workers leaving the factory on Wednesday lunchtime spoke of their shock at the announcement which had been speculated in the media.

Leaders of the Amicus union expressed their anger that the were not consulted over the closure of the factory and said it was a "smack in the face" to the staff who contributed to �2.7b profit for BAT in 2002.

They fear a further 5,000 local ancillary jobs dependant on the factory could also be at risk.

'Long-term' success

Darlington MP, Alan Milburn, described the news as a "body blow" to the whole region.

Paul Adams, BAT's managing director said: "We very much regret job losses, especially when our people contribute so much to the Group's success.

"However, we are committed to improving productivity in order to strengthen our competitive position in the world, deliver profit growth, and ensure the continued long-term success of the Group."

BAT said about 90% of their of output from the two UK factories is exported outside the European Union.

They added that production volumes had been transferring overseas as a result of an increasing trend towards local manufacture in key markets including South Korea, Russia and Nigeria, and relatively higher manufacturing costs in the UK.

This is a deplorable decision that will decimate the area Mick Mulhern, Amicus

As part of the restructuring, BAT's subsidiary Imperial Tobacco Canada will also cut 840 jobs through the closure of facilities in Montreal and Aylmer, Ontario.

Worker Ronnie Holbrough, a senior operator who has worked at the factory for 13 years, said he was disappointed he had first read about the closure in a local newspaper.

He said: "I cannot believe they have treated us this way.

"They have been telling us it was not going to shut and that things were picking up.

"I think it's disgusting, the management have been so secretive, just leading us along."

MP questions

Mick Mulhern, Amicus National Secretary, Tobacco said, "This is a deplorable decision that will decimate the area, partly because of the closure of such a large plant but also through the loss of up to another 5,000 service and local community jobs which rely on the factory for their livelihood.

"The way the company has made this announcement is not acceptable and no way to run industrial relations."

In a statemen, Darlington MP Alan Milburn said: "It is a big loss for Darlington, it is a body blow to the workforce, which have bent over backwards to deliver improvements in productivity and flexibility.

"The company's decision seems to flow from its strategy to produce cigarettes in those countries who have long been the Darlington factory's principal export markets.

"I will want to meet with the company as soon as possible, to question why it has chosen Southampton over Darlington.

"I plan to meet with the local trade unions, and local council tomorrow [Thursday] to see what further steps we can take."