FEARS that Teesside could be about to lose hundreds more manufacturing jobs were allayed yesterday.

Paints and chemicals group ICI said that 700 jobs are to be cut worldwide during the first phase of a restructuring announced today.

The company confirmed that five jobs will be lost at specialist chemicals business Uniqema, at the Wilton site, near Redcar.

But there were still concerns for other Teesside chemical workers as the company admitted that further restructuring decisions were still to be made.

The move comes as ICI attempts to revive its fortunes after a shock profits warning in February.

The latest round of job cuts, which will take place during the next two years, include about 300 posts in the UK, although ICI has not said where they will be but has said few will be on Teesside.

New chief executive Dr John McAdam is expected to provide details in the summer. He may also outline further restructuring plans.

He said: "The economic environment for the rest of 2003 is, at best, uncertain, and it is clear that ICI cannot rely on improved market conditions to aid profit growth."

The Dulux paint maker has a workforce of 36,600, of which 5,000 are based in the UK, including factories on Teesside. It has other plants in Slough and High Wycombe.

Pre-tax profits for the first three months of this year were £52m, down £14m on last year. However, the performance was slightly better than the £16m drop forecast by ICI at the time of its profits warning.

The job cuts will save the company about £30m a year.

Derek Simpson, joint general secretary of the union Amicus, said: "ICI has chosen to make its announcement via the Stock Exchange and has held no consultation with workers or unions. That is shocking."