ICI targets central costs to improve profitability

In announcing better than expected second quarter results, industrial giant ICI pledged to continue tackling costs. This looks like it could mean cutting the number of administration and support staff by 600. It may also mean a move out of the long-standing Millbank HQ.

ICI has been re-inventing itself for years, moving away from the broad-based production of chemicals towards more focused markets. It has achieved some success with this, resulting most recently in forecast profits for the year being upgraded. In re-affirming the company's focus on customers' needs, chief executive Brendan O'Neill also conceded that relocation is a possibility. If ICI remains in its building, he said, it would be looking to share with another organisation.

Despite ongoing re-structuring, ICI remains heavily in debt and will need both property and support services to make an optimal contribution to increased efficiency.

Elliott Chase