CONCERNS were growing last night for the jobs of more than 80 workers from the region after a tobacco company warned of its intention to cut costs.

As British American Tobacco (BAT) announced profits of £2.8bn, it said it was planning substantial savings in its supply chain, which includes staff costs.

BAT closed its Rothmans factory in Darlington last July, with the loss of 500 jobs.

About 85 workers transferred to the Southampton plant - some commute there each week.

Those workers now face another agonising wait to learn if BAT plans to close its last UK factory.

BAT refused to rule out job losses after raising its cost-cutting targets and announcing a 20 per cent increase in profits.

The group said it was planning savings after raising its annual cost reduction target by £120m to £320m before the end of 2007.

A BAT spokesman said the company was monitoring staff costs as part of that programme.

He said: "There is no indication of what that would mean and where."

BAT employs about 86,000 people at 87 factories in 66 countries around the world. About 2,000 work in the UK.

The group's only British factory, at Southampton, employs about 1,200 people. It makes the group's flagship brands of Rothmans, Lucky Strike and Dunhill, mainly for export to the Far East.

BAT said pre-tax profits in the year to December 31 were £1.9bn, compared with £1.6bn the year before.

It said it had reduced costs in the past two years by £120m a year as a result of factory rationalisation and logistics savings.

As well as at Darlington, the company has also closed factories in Germany.

The group said operating profits before goodwill and one-off items were up two per cent at £2.8bn.

It exports more than 90 per cent of products made in the UK and has a six per cent share of the UK market.

Mike Budd, of trade union Amicus, which represents hundreds of workers at the Southampton plant, said he had not spoken with former Darlington employees, but sympathised with their situation.

He said: "We wish the company had spoken to us, without us having to find out about the potential of the factory closing by looking at the company report. It seems that if they are closing, it will be a fait accompli, and we will not have the opportunity to look at other options with them.

"The Southampton workforce was very disappointed when the Darlington plant shut, partly because it meant they were the only UK manufacturing facility left for BAT - making it much more vulnerable."