PLANS for the sale of a North-East cigarette factory were unveiled last night, raising hopes 400 jobs could be created.

The Rothmans plant in Spennymoor, County Durham, has been bought by redeveloper Industrial Estates Scotland (IES) which aims to turn the 27-acre site into a flagship business community.

The sale has been welcomed by the Government-funded Task Force, set up by Trade and Industry Secretary Stephen Byers last November, following the decision by British American Tobacco (BAT) to close the factory.

Mr Byers said: "The IES plans to convert the factory for use by new businesses which could create 400 new jobs.

"This is an excellent outcome, particularly as the number of former Rothmans employees still looking for work is much fewer than this.

"The new owners have a good track record in job creating conversions of this type, including in Sedgefield, and I am confident that many new jobs will come to Spennymoor in the future as a result of this deal."

The tobacco firm, which employed 460 people, will close its doors for good in the autumn, ending a 20-year association with the town.

In 1996, IES purchased disused buildings in Newton Aycliffe, formerly belonging to Underground Mining Machinery, converting them to 20 industrial units.

The developers aimed to create 300 jobs, and a total of 291 jobs are now housed on the site