CHEMICALS and paints manufacturer ICI is to cut 275 jobs in the UK as part of a restructuring plan that will see about 1,300 posts cut worldwide.

But more than 1,000 staff at its Teesside operations, including Uniqema at Wilton and Synetix in Billingham, are expected to be spared the axe.

A spokesman for ICI on Teesside said: "We don't envisage a major impact of these job cuts on Teesside, where a lot of restructuring has already taken place in recent years."

ICI has blamed the world's "uncertain environment" for the job losses, as it also reported that pre-tax profits for the three months to September 30 were down 11 per cent.

The company, which employs 5,000 people at more than 30 plants in the UK, said that the job cuts would be spread around the country.

Almost a third of the worldwide job losses will be in the US, where demand for ICI products has been hardest hit by the economic slowdown and the effect of the September 11 terrorist attacks.

ICI chairman Charles Miller Smith said the company's performance was still "creditable" given the difficult environment.

But he said: "Current indications are that sales for October will be slightly below prior year levels.

"Given the uncertain environment, we are implementing a major programme to improve cost effectiveness."

ICI, which makes a range of products including Dulux paints, hopes to complete the restructuring programme within two years and deliver annual savings of £60m.

Last year, the group completed a three-year programme repositioning itself from a high-volume bulk chemicals business to a speciality products and paints business.

Third-quarter figures from ICI show pre-tax profits fell to £108m from £122m in the same period last year. Turnover was down slightly at £1.6bn.

Its efforts to sell its 30 per cent stake in Huntsman International, its former polyurethane and tioxide businesses, have been stalled by the economic downturn.

ICI began talks to sell its share in the joint venture company last year, but has claimed that it is unlikely to complete a deal in the foreseeable future.

It sold 70 per cent of its commodities business to Huntsman in 1999 for £1.7bn, with the aim of selling the rest within four years.