BRITISH American Tobacco will leave a £1m legacy to soften the blow of the closure of its last plant in the North-East, it emerged yesterday.

The company left the regional economy reeling a year ago today when it announced that its Rothmans operation, in Darlington, was to shut down, with the loss of 490 jobs.

The announcement came as a hammer blow to employees, many of whom had worked at the factory for decades.

But BAT pledged to help compensate for the loss of one of the town's biggest employers - and the confirmation of the substantial legacy was hailed as a "golden opportunity" for the town last night.

BAT bosses said much of the £1m community legacy would be ploughed into the creation of jobs in the town.

Darlington Borough Council will work closely with other agencies to ensure the cash legacy is used to support new business development.

The money will also be invested in training schemes, for ex-Rothmans' workers and others, and community projects.

BAT spokesman Tom Roberts said last night: "We believe the money will trigger some valuable initiatives and complement funding from other sources."

The factory is due to cease manufacturing cigarettes at the end of the month and will close by the end of the year. Most of the Darlington production has now been transferred to Southampton.

Council leader John Williams said he was pleased the region would not be left empty-handed by BAT's departure.

He said: "Now we can begin to work with our partners to use this legacy to lay the foundations that will help to develop businesses and create new jobs for Darlington and the region."

Darlington MP Alan Milburn said: "Despite the decision to close the factory, it is welcome that the company has decided to put something back.

"Obviously, this cannot be a compensation for the workers who have lost their jobs, but it does provide a golden opportunity to bring new jobs into the town."

So far, 305 workers have left the Rothmans factory, including 99 who were transferred elsewhere within BAT, many on temporary assignments at its Southampton plant.

About 150 employees are expected to leave the business over the next three months, while 30 will remain to manage the site closure.