GLOBAL chemical company ICI yesterday called time on its manufacturing operation in a region where it once employed 30,000 people.

ICI will no longer have a factory on Teesside if it completes the proposed sale of its oleochemicals operation Uniqema, which makes ingredients for products such as suncream.

The move would leave only 100 research and development staff on Teesside, although other chemicals companies still operate in the region, with Johnson Matthey and Huntsman now operating some of the former ICI sites.

ICI said it had decided to sell Uniqema, which employs about 360 people at Wilton, because the business did not fit into the group's core portfolio of paints and adhesives.

The announcement came as Britain's biggest chemical company announced that its pension fund deficit had risen 44 per cent to £1.5bn at the end of last year.

Anthony Platts, assistant director at Tees Valley investment management firm Wise Speke, said: "In tackling the pension fund deficit, ICI will make four annual top-up payments of £122m, starting this year.

"With the number of ICI pensioners greatly exceeding the number of remaining workers, the pension fund is hugely important to the region as a major driver of the North-East economy."

ICI yesterday posted a five per cent rise in pretax profits to £444m for last year, from £422m in 2004, while sales increased to £5.8bn from £5.6bn.

Uniqema saw sales fall six per cent in the fourth quarter of last year, while sales fell by nearly ten per cent.

Mr Platts said: "While most divisions saw improvements, ICI's Uniqema business saw sales decline.

"Turning its fortunes around would require significant additional investment and, in this context, ICI has decided to find a buyer for the business."