Cigarette manufacturer British American Tobacco has confirmed it will close its last North-East plant.

The company intends to shut its Rothmans factory in Darlington, County Durham, and transfer work to a larger operation in Southampton.

The Darlington site manufactures Rothman's Royals, Dunhill and Craven A cigarettes from raw tobacco and exports most of its output outside the European Union.

It will be closed by the end of 2004, with the loss of 490 jobs.