BOSSES at a tobacco factory have warned that a strike could jeopardise the future of the plant as it struggles with overseas competition.

Four hundred workers at British American Tobacco (BAT), in Southampton, walked out yesterday in a dispute over pay.

Among the 1,200 workers at the plant were 80 who transferred there from Darlington when the factory in the town closed in June.

Some of the workers commute to Southampton and return to their families in Darlington at weekends.

A spokeswoman for the company last night warned that Southampton could face the same fate as Darlington if the plant did not remain competitive.

She said the 80 workers who were transferred from the Darlington factory were not believed to be involved in the industrial action.

Members of trade union Amicus downed tools for 24 hours in the strike.

Managers at BAT hinted that the strike could have damaging implications and contractors have been employed to make sure production is not affected.

BAT made global profits of £1.54bn in the first nine months of the financial year.

A BAT statement said: "The Southampton factory is under considerable pressure to control its costs and remain competitive. That includes being sensible about what we pay ourselves.

"We are operating in an environment where there is global overcapacity within the industry and where BAT has many factories in less expensive locations.

"We have already seen factory closures and downsizings in the UK and elsewhere across the world, and it is vital that we do not compromise our competitiveness further.

"Strike action will only damage our reputation with our customers, and it will benefit no one."

The warning comes after the company announced plans to close its tobacco plant in Belfast and to shed 180 jobs at its Zevenaar factory, in Holland.

Southampton is now BAT's only cigarette-making factory in the UK.

Workers have rejected BAT's 2.6 per cent pay offer and Amicus is instead campaigning for three per cent.

Strikes are due to be held every Wednesday until the dispute is settled, the union said.

John Allot, Amicus national officer, said the company was on target to make profits of £2bn this year. He said: ''BAT has announced massive profits while refusing to pay our members fairly."