HUNDREDS of Teesside chemical workers have been left in limbo after ICI failed to announce the sale of its industrial chemicals businesses yesterday.

There was speculation earlier this week that the chemicals giant would announce the sell-off to Ineos with its third quarter trading update, but that failed to materialise.

Instead the chemicals giant, which once employed more than 20,000 people on Teesside, but now has around1,200 revealed that it had agreed to sell-off its Methanol businesses to Canadian company Methanex, for £15m.

However, ICI's Billingham-based assets are not included in the deal. The 500,000 tonnes per year operation will manufacture Methanol for Methanex until its statutory maintenance shutdown in April 2001, when it will be mothballed.

Of the 88 staff who work at the plant, 21 will transfer to Methanex, while the remaining 67 will continue to be employed by ICI.

But with its ever dwindling presence, union leaders believe its is only a matter of time before the group announces its first ever compulsory redundancies on Teesside.

ICI has sold its final 30 per cent stake in chemicals business Huntsman ICI Holdings (HICI) to majority shareholder Huntsman Specialty Chemicals Corporation for £250m.

HICI was established as a subsidiary of the Huntsman Corporation when ICI agreed to sell its Polyurethanes, Tioxide and selected Petrochemicals businesses to HICI last year.

Yesterday ICI unveiled a 14 per cent hike in pre-tax profits for the third quarter of the year to £122m, compared to £107m for the same period of last year. Turnover in its core businesses in rose four per cent to £1.49bn.

But it revealed it is slashing its dividend payout to shareholders to accelerate profits growth.

However, the move had an impact on the group's shares - which ended the day up 10p at 427p.

Announcing the cut, chairman Charles Miller Smith said: "Another solid quarter of sales and profit growth demonstrates the resilience and future growth potential of the business.

"To accelerate the pursuit of profitable growth, the board has decided that the dividend - which will be maintained for 2000 - will be re-based from 2001."

This means dividend will be cut by half as the group looks to divert more money back into the business. ICI has been implementing a three-year disposal programme to turn itself from a bulk chemicals business into a speciality products and paints business