THE ICI chemical group last night assured Teesside workers that their jobs were safe despite the threat of staff cuts in other areas.

The company warned the City of sharply lower first quarter profits after problems emerged at its Quest food flavouring and National Starch divisions.

But Uniqema, which employs 400 people on Teesside, and the smaller operations of Regional and Industrial and a research facility at Wilton are unlikely to be affected by the announcement.

A spokesman said: "The announcement is highly unlikely to have any impact on Teesside. It is foolish to say categorically, but it is highly unlikely."

National Starch, which accounts for 31 per cent of ICI's business, has been hit by significant raw material increases. It is based in Bridgwater, New Jersey, but has significant operations in Vietnam.

Quest, 11 per cent of ICI's business, is split into two parts - food flavourings and fragrances.

The Netherlands and Ashford, Kent, outlets fell victim to weak fragrance sales in Europe.

Shares plummeted in the wake of the update, with £700m wiped from its market value as stock fell 39 per cent, or 59.5p, to 94p. And ICI warned it planned another review of costs.

The group has already cut 1,200 jobs as part of a 1,450-strong headcount reduction announced in November 2001.

ICI, which employs a workforce of 5,500 in the UK, said it did not yet know where - or how many - jobs would be lost.

The move comes after ICI warned that profits before exceptional items in the first quarter of 2003 would be around £50m, compared with £66m a year earlier.

Trading profits in the Quest division are forecast to fall from £29m to around £9m this year.

The company pledged further action to sustain improvements in customer service and added that Paul Drechsler, who is chairman and chief executive of Quest, would be leaving the group.

The Dulux paint-maker added: "Immediate actions have been taken in both National Starch and in Quest, and ICI is undertaking a further group-wide cost reduction review to improve the overall performance of the group."

ICI has a global workforce of around 36,500 and operates factories around the UK, including in Slough, High Wycombe, Ashford and Middlesbrough.