Akzo to shed 3,500 jobs with ICI's integration

The owner of paint and chemicals company Imperial Chemical Industries (ICI) is to cut 3,500 jobs by 2011 and postpone its share buy back programme.

Dutch chemicals group Akzo Nobel, which acquired ICI earlier this year, said the cost reduction programme would save at least €100 million. An Akzo Nobel spokesman declined to comment on how many jobs could go at ICI but said the bulk of the jobs would go in the Decorative Paints business in North America and on the European continent.

Akzo Nobel said it will target an earnings before interest, tax, depreciation and amortisation margin of at least 14 per cent by the end of 2011. The Dutch group said it plans to deliver synergies from the ICI takeover faster and complete the integration by 2010.

Yesterday, shares in Akzo Nobel fell by €0.25, or 7.75 per cent, to €32.75, which is a three-year low.