ICI to cut 1300 jobs in £120m, two-year restructuring plan

01 November 2001 10:05  [Source: ICIS news]

LONDON (CNI)--ICI said Thursday it is to cut its workforce by a further 1300 people under a two-year restructuring plan aimed at cutting costs and improving supply chain efficiency across all its international businesses.

The UK paints and specialty chemicals company said the restructuring plan would cost £120m ($172m/Euro193m) and is expected to deliver annual savings of some £60m and reduce working capital by more than £50m.

The plan was announced along with an 11.5% drop in third quarter pre-tax profits, a 9% fall in trading profits and turnover down almost 5%.

ICI said the cuts would affect National Starch, flavours and fragrances business Quest, the paints division and specialty chemicals operation Uniqema.

A spokesman for ICI told CNI that 600 jobs would be lost in Europe, including 275 in the UK, plus 550 in the US and 120 elsewhere out of a total global workforce of around 40 000.

National Starch will lose 400 jobs, including 44 at Plymouth, southwest England, where closure of the Acheson specialty engineering lubricants plant was announced today.

The Quest business will shed 370 jobs, paints will lose 280 and Uniqema 235.

ICI said the cost of the restructuring programme would utilise a further £60m from existing capital budgets and is expected to achieve payback in about two and a half years.

By: Neil Sinclair
+44 20 8652 3214

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