FEARS have been allayed that Teesside could be about to lose hundreds more manufacturing jobs.

Paints and chemicals group ICI said 700 jobs are to be cut worldwide during the first phase of a restructuring, announced last Friday. It confirmed five jobs will be lost at specialist chemicals business Uniqema, at the Wilton site, near Redcar.

But there were still concerns for other Teesside chemical workers as the company admitted that further restructuring decisions were still to be made.

The move comes as ICI attempts to revive its fortunes after a shock profits warning in February. The latest round of job cuts, to take place during the next two years, include about 300 posts in the UK. ICI has not said where they will be but has said few will be on Teesside. New chief executive Dr John McAdam is expected to provide details in the summer.

ICI has a workforce of 36,600, of which 5,000 are based in the UK, including factories on Teesside. It has other plants in Slough and High Wycombe.

Pre-tax profits for the first three months of this year were £52m, down £14m on last year. The job cuts will save the company about £30m a year.

Derek Simpson, joint general secretary of the union Amicus, said: "ICI has chosen to make its announcement via the Stock Exchange and has held no consultation with workers or unions. That is shocking."