ICI chairman Charles Miller Smith is to retire next year after more than six years at the helm.

Mr Miller Smith, who is also chairman of ScottishPower, was appointed chief executive of ICI in 1995 and became chairman in 1999.

Mr Miller Smith, who joined the ICI board in 1993, will retire at the group's annual meeting next May. A successor will be announced "in due course".

Analysts said Mr Miller Smith, who is "well regarded" in the City, had overseen ICI's change in strategy to transform itself into a speciality chemicals business from its traditional commodities base.

One analyst said: "It was a very good move but it happened at an unfortunate time - when there was a world glut of chemicals."

Senior ICI non-executive director Lord Trotman said: "Over the past eight years, Charles has made a unique contribution to the development of ICI.

"As one of the principal architects of the group's strategic transformation, he has worked tirelessly as both chief executive and subsequently chairman to recreate ICI as the world's leading speciality products and coatings business.

"Despite the tragic loss of his wife, Dorothy, from cancer in 1999, his commitment to ICI has been unwavering and the board wish him every success."

Two months ago, Mr Miller Smith unveiled a "robust performance" at the paint and chemicals company, with half-year profits before tax and one-off costs at the upper end of hopes.

Profits of £210m were six per cent down on a year earlier, although ICI said this represented a good performance in tough economic conditions.

Mr Miller Smith will continue as chairman of Scottish Power, and will also become an international advisor to investment bank Goldman Sachs International.