ICI is looking to cut annual costs by �170m

The London-based company employs 32,000 people worldwide and 4,000 in the UK. It said that most of the cuts will be made overseas.

Best known for its Dulux paint, ICI also makes food additives, fragrances, lubricants and personal care products.

ICI boss John McAdam said in a trading update that 2006 had started well and that the outlook remained positive.

Rising profits

The firm's main UK sites are in Ashford in Kent, Middlesbrough and Slough.

A spokesman said it was not yet known how many of the redundancies would be compulsory.

Also reporting its first quarter results on Thursday, ICI saw its pre-tax profit for the three months to 31 March rise 8% to �91m compared to the same period a year earlier.

Founded in 1926, ICI has an annual turnover of �5.8bn.

It previously cut 1,400 posts in 2003 as part of then moves to save �70m.