ICI to cut 1,400 more jobs
The chemicals giant, ICI, announced that it is to cut 1,400 jobs with 300 jobs expected to go in the UK.
The announcement comes on top of the 700 job cuts announced earlier this year.
ICI announced a 22% fall in the group’s pre-tax profits to £98 million in the second quarter of 2003 from £125 million in the same period a year ago.
The company announced the reductions because despite the improved performance from the first to second quarter the profits remained ‘disappointing’.
ICI believes that the head count reductions and restructuring plans will make the company annual cost savings of £100 million by 2005.
The company’s paints division and National Starch, the chemicals division, performed better in the second quarter of 2003 with sales increasing 1% and 3% respectively.
Roger Lyons, joint generals secretary of Amicus union, described the job losses as a ‘hammer blow’ to manufacturing.
Mr Lyons stated, ‘For a country that has produced so much oil and gas it is a strategic failure that we have not been able to convert that into securing manufacturing jobs.’
In a separate announcement the Government announced that it is to give £50 million to a chemicals plant in Runcorn, which is part owned by ICI, to modernise its facilities and safeguard over 2,000 jobs.
Trade and Industry Secretary, Patricia Hewitt announced that the grant would make the plant more environmentally friendly by reducing energy usage and nitrogen dioxide emissions.
