ICI parent plans to axe 3,500 jobs to cut costs

Published on Monday 29 September 2008 21:26

THE owner of paint and chemicals firm ICI has revealed plans to shed 3,500 jobs in an attempt to cut costs and bolster earnings.

AkzoNobel, which bought Dulux firm ICI in an 8 billion takeover in January, said it was taking "aggressive action" across its business to combat the consumer downturn.

The Dutch company employs 43,000 people in more than 80 countries, including 4,500 in the UK in its coatings and paint divisions. Locations include Tyne & Wear, Leicester, Worcestershire and Slough.

AkzoNobel said it was too early to comment on what jobs might go.

The main Scottish operation listed on the firm's website is a decorative paints division decorator centre in Kirkintilloch.

Chief executive Hans Wijers added: "In these challenging markets, only lean companies succeed. We have, therefore, started a rigorous drive to reduce our cost base.

"The world economy has now clearly entered a phase of lower growth, particularly in the mature markets."

AkzoNobel's share buy-back scheme will also be deferred due to the uncertainty in the global financial markets. The company had embarked on the 4.6bn (3.7bn) programme last year, but is now to concentrate on refinancing its debts.

ICI delisted from the London Stock Exchange in January after 82 years of independence, following the takeover by AkzoNobel.

It was an inaugural member of the Stock Exchange's FT30, which was established in 1935.