ICI to cut 275 jobs in UK and hundreds more worldwide

ICI is to cut 275 jobs in the UK as part of a restructuring plan which will see 1,300 posts go worldwide.

The group blames the "uncertain environment" as it reports that pre-tax profits for the third quarter were down 11%.

ICI, which employs 5,000 people at more than 30 plants in the UK, says the job cuts will be spread around the country.

Almost a third of the worldwide job losses will be in the United States, where demand for ICI products has been hardest hit by the economic slowdown and the effects of the September 11 terror attacks.

Chairman Charles Miller Smith says the company's current performance is still 'creditable', given the difficult environment.

But he says: "Current indications are that sales for October will be slightly below prior year levels. Given the uncertain environment, we are implementing a major programme to improve cost-effectiveness."

ICI, which makes chemicals and other products including Dulux paints, says it hopes complete the restructuring programme within two years and deliver annual savings of £60m in the process.

Last year, the group completed a three-year transformation programme, repositioning itself from a high-volume bulk chemicals business to a speciality products and paints business.

ICI's third-quarter pre-tax profits, before one-off costs, were £108m - down from £122m last year.

Meanwhile, the group's turnover sank to £1.6bn, from £1.7bn last time.