ICI has announced the first stage of a new restructuring program aimed at delivering £30 million of sustainable bottom line savings by 2005. The initiative will have a dramatic affect on ICI’s paint operations, as more than have of the predicted savings will come through initiatives within that business.

ICI said it will reduce its headcount by more than 700 jobs over the next two years, including 460 paint staff. The company’s plans include “intensive productivity improvements” at each of its 10 main manufacturing sites across Europe, including rationalization of solvent-borne production facilities and restructuring of all European supply chain support functions to take overall supply chain productivity to world-class levels.

Some 15,740 people currently work for ICI’s paint business.