UP to 10,000 workers nationwide could be affected by British American Tobacco's decision to close its last remaining North-East plant, it was predicted last night.

The closure of the Rothmans plant in Darlington was revealed exclusively yesterday in The Northern Echo.

And yesterday afternoon, workers were told that, following a global review, the factory is to shut with the loss of 490 jobs.

The company plans to move the operation to its manufacturing plant in Southampton, which employs about 700.

But union officials warned last night that the closure could have a dramatic effect on other companies in the supply chain, many of them in the North-East, as well as an impact on the local economy.

The Darlington manufacturing plant is responsible for processing tobacco which is shipped in from the Philippines, Brazil, China and Argentina.

Once the cigarettes are made, 75 per cent of the production is then shipped abroad.

The Darlington operation relies on other companies to provide paper, cardboard, filter, ink and other materials used to make cigarettes.

MSF Amicus branch secretary Ray Raper who has worked at the plant for 25 years, said Rothmans contributed £30m to the North-East economy.

He said: ''These are well-paid, quality jobs and everybody is going to suffer.''

Mr Raper believed the closure could affect up to 10,000 jobs in the supply chain nationwide.

Union official Steve Monkman, chairman of the MSF Amicus section at the plant, said the Darlington plant relied on a lot of North-East businesses.

Mr Monkman said: "There is a local cleaning firm in Darlington that we use - they are part of the workforce, and canteen and transport staff as well. These are types of people who will be affected.

"We believe the Darlington closure could result in other job losses."

Workers said they had been told by management that while it was cheaper to produce cigarettes in Darlington, it would be more expensive for the company to close the Southampton site.

As part of the restructuring, BAT's subsidiary, Imperial Tobacco Canada, will also cut 840 jobs .

BAT managing director Paul Adams said: ''We very much regret job losses, especially when our people contribute so much to the group's success.

''However, we are committed to improving productivity in order to strengthen our competitive position."

BAT said the closure would generate annual cost savings of about £65m from 2005, although it will also take a one-off restructuring charge of £320m in financial results for this year.

Union officials are to hold consultation talks with management at the Rothmans factory at 1pm today.

They will then to go on to meet Darlington MP Alan Milburn and leader of Darlington council, John Williams.

One NorthEast is also keen to work with BAT to help workers.

Mr Milburn, said the move was a ''body blow'' to workers and he wanted to meet bosses to ask them why they made the move.