CANBERRA, June 4 (Reuters) - Australia's largest sugar producer will bar workers who take part in strike action from its mills, the company said on Tuesday, escalating an industrial dispute that has already delayed the start of the sugar production.

"Today, Wilmar Sugar and Renewables advised more than 1,200 wages employees that anyone participating in industrial action from start of shifts tomorrow morning (Wednesday 5 June) will be locked out until further notice," the company said in a statement.

Locked-out workers would not be able to enter Wilmar's facilities and would not be paid until the measure was lifted, it said.

Wilmar Sugar and Renewables runs eight mills in Australia that produce more than half of the country's sugar. It is owned by Singapore-based Wilmar International Ltd.

(Reporting by Peter Hobson; Editing by Jacqueline Wong)