Two thirds of the staff at Filtrona Filter Products in Jarrow will lose their jobs after a big fall in cigarette consumption across western Europe and the US.

A total of 233 people will lose their jobs, leaving only about 130 staff at the factory, at the Bede Industrial Estate.

But a package of employment support will be in place to help those facing life on the dole.

Reacting to the job losses, confirmed yesterday by factory bosses, Jarrow MP Stephen Hepburn said: "I am very disappointed with the announcement.

"Changing smoking habits across the world, with the main market constantly being in the Far East, have led to a decline in cigarette consumption, which has badly affected the company.

"Hopefully, the support package put in place by the local authority and the company will assist those employees who are facing redundancy get back into employment as quickly as possible."

Coun Michael Clare, South Tyneside Council's lead member for jobs, enterprise and regeneration, called the job losses "disappointing, but not unexpected."

He said: "Since the 90-day consultation process began, it has become increasingly obvious the company's decision to shift volume production to eastern Europe was the only viable option, if the remaining research and development jobs were to be saved.

"A public response group, chaired by the council, has been set up to help the departing workers find new jobs and offer retraining, where necessary.

"The group also includes representatives of One NorthEast, Business Link, Jobcentre Plus and Nextstep."

Coun Clare added that members of the response group are meeting today to identify what retraining and new skills the Filtrona staff need.

He added: "The group is working with the company to achieve the best possible outcome for the redundant staff.

"Filtrona has appointed a specialist outplacement manager at the factory for the 233 employees affected by this decision.

"As departures are going to be phased over the next 12 months, the response group is confident there is sufficient time to help many workers find new jobs, or perhaps start their own business."

The company was launched in 1948, operating for many years as Cigarette Components.