Chemicals and paints giant ICI has said that it is to slash 1,300 jobs.

The redundancies came as the company announced an 11% decline in profits for the three months to September.

Almost a third of the job cuts will be in the US, where demand for ICI products has been hardest hit by the economic slowdown.

About 275 of the job losses will come in the UK, spread among the group's 30 plants.

Uncertain outlook

"Given the uncertain environment, we are implementing a major programme to improve cost effectiveness," said ICI chairman Charles Miller Smith.

The group hopes the restructuring will save it �60m a year.

Last year the firm completed a three-year transformation programme that has seen it withdraw from the bulk chemicals market and concentrate on speciality products and paints.

ICI shares had gained 10p to 334p by 1034 GMT.