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ICI to cut jobs

04/05/2006

Imperial Chemical Industries (ICI) today announced plans to cut 2,300 jobs as part of a programme to achieve annual savings of £170 million by 2011.

The company, which employs 4,000 people in the UK and 32,000 staff across the world, said that most of the redundancies would be made overseas.

In a trading statement the makers of Dulux paint also announced an eight per cent increase in first quarter profits.

Profit before tax and special items was £91 million in the three months to March 31st 2006, the company said, while adjusted net profit was £68 million, up from £60 million in 2005.

ICI, which manufactures paints, fragrances, lubricants and personal care products, said it intended to make a cash investment of around £340 million into its operations over the next three years.

It explained that around £80 million would come from capital expenditure while other money would be found from existing budgets as part of ICI’s plan to reduce its costs.

ICI chief executive John McAdam said the company’s outlook for the rest of 2006 looked positive and was in line with expectations.

"The investments we are planning to make over the next five years will create the basis for continued profitable growth," he said.

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