PLANS for the sale of the Rothmans cigarette factory in Spennymoor were unveiled this week which could lead to the creation of 400 new jobs.

The site has been bought by redeveloper Industrial Estates Scotland, for an undisclosed fee, with the aim of turning the redundant 27-acre site into a flagship business community.

The sale has been welcomed by the government-funded Task Force, set up by Trade and Industry Secretary Stephen Byers last November following the decision by British American Tobacco (BAT) to close the plant.

Mr Byers said: "The IES plans to convert the factory for use by new businesses which could create 400 new jobs. This is an excellent outcome, particularly as the number of former Rothmans employees still looking for work is much fewer that this.

"The new owners have a good track record in job creating conversions of this type, including in Sedgefield, and I am confident that many new jobs will come to Spennymoor in the future as a result of this deal."

The tobacco firm, which employed 460 people, will finally close its doors for good in the autumn.

Production ceased last month, and the Task Force set up to minimise the effect of the closure were delighted with their efforts to tackle the three objectives they were set - finding a buyer, helping the workforce find new jobs and minimising the effect on the local community.

Task force chairman and chief executive of Sedgefield Borough Council, Norman Vaulks said: "We are all delighted that the search for a suitable buyer, and the consequent negotiations, have been so smooth and successful."