SOUTHAMPTON'S economic boss today spoke of his relief that the jobs of 1,500 workers at the city's BAT factory are safe.

As reported in the Daily Echo yesterday, the worldfamous cigarette company is closing down its factory in Darlington and switching production to the bigger Southampton plant.

David Beckett, Southampton's finance portfolio holder, said: "I'm pleased that the jobs in Southampton are safe, although mindful it was at the expense of workers in another area. It is good news that people are retaining their livelihoods."

Meanwhile, more details of BAT's restructuring have been emerging.

Workers at Darlington were told by management that while it was cheaper to produce cigarettes in Darlington, it would be more expensive to close the Southampton site.

BAT said shutting down the Darlington plant by the end of next year, with the loss of 490 jobs, would generate annual cost savings of about £65m from 2005.

However, the company will be paying out £320m for redundancies and so-called asset write-downs. About 90 per cent of the output from Southampton and Darlington factories is exported outside of the European Union.

Brands include Dunhill, State Express 555 and Rothmans International.

BAT said in a statement, which could have worrying implications for the Millbrook plant in the long run, that production has been transferring overseas as a result of an increasing trend towards local manufacture in key markets. These include South Korea, Russia and Nigeria, where costs are lower than in the UK. The tobacco giant has also axed 840 jobs in Canada, where brands Player's and du Maurier are made.

Along with the 1,500 people at the factory, many of whom are machine operators, a further 7,000 are involved in the supply chain.

The plant, which processes imported tobacco, relies on companies to provide the materials used to make cigarettes.