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{{Infobox Company
| company_name = Imperial Chemical Industries
| company_logo = [[Image:ICI.svg|180px]]
| company_type = [[Subsidiary]]
| foundation = 1926
| location = [[Slough]], [[England]], [[UK]]
| key_people = Peter Ellwood (Chairman) <br>John McAdam (CEO)
| industry = Chemicals
| products = Paints & speciality chemicals
| owner = [[Akzo Nobel]]
| revenue = [[Pound sterling|£]]4,845 million [[GBP]] (2006)
| operating_income= [[Pound sterling|£]]502 million [[GBP]] (2006)
| net_income = [[Pound sterling|£]]295 million [[GBP]] (2006)
| num_employees = 29,130 (2006)
| homepage = [http://www.ici.com www.ici.com]
}}
'''Imperial Chemical Industries''' ('''ICI''') is a [[United Kingdom|British]] [[Chemistry|chemical]] subsidiary of a [[Netherlands|Dutch]] [[Conglomerate (company)|conglomerate]] and one of the largest chemical producers in the world. It is based in [[Slough]], UK. It produces paints and speciality products (including ingredients for [[food]]s, specialty [[polymer]]s, electronic materials, fragrances and flavours). It employs around 29,000 people and had a turnover of just over [[Pound sterling|£]]4.8 billion in 2006. The Company was once a constituent of the [[FTSE 100 Index]] but since January 2008 it has been a [[subsidiary]] of [[Netherlands|Dutch]] chemicals group [[Akzo Nobel]],<ref name="mergerdone">{{cite news
| title=Akzo Nobel ICI merger completed
| date=2008-01-02
| url=http://news.bbc.co.uk/1/hi/business/7168348.stm
| publisher=BBC News
|accessdate = 2008-01-05}}</ref> which is in the process of fully integrating the two companies.<ref>{{cite press release
| title=Akzo Nobel to Focus on Fast and Effective Integration in 2008
| date=[[7 January]], [[2008]]
| url=http://www.akzonobel.uk.com/dynamic.asp?page=Fast_integration
| publisher=[[Akzo Nobel|Akzo Nobel U.K.]]
|accessdate = 2008-02-13}}</ref>

==History==
===Development of the business===
The Company was founded in December 1926 by way of the merger of four companies — [[Brunner Mond]], [[Nobel Industries (Scotland)|Nobel Explosives]], the [[United Alkali Company]], and [[British Dyestuffs Corporation]].<ref name=history>[http://www.ici.com/History ICI: History]</ref> It established its Head Office at [[Millbank]] in [[London]] in 1928.<ref name=history/>

Competing with [[DuPont]] and [[IG Farben]], the new company produced [[Chemical industry|chemicals]], [[explosive]]s, [[fertiliser]]s, [[insecticide]]s, [[dye]]stuffs, [[non-ferrous]] metals, and [[paint]]s.<ref name=history/> In its first year turnover was [[Pound sterling|£]]27m.<ref name=history/>

In the 1920's and 30's the Company played a key role in the development of new chemical products, including the dyestuff [[phthalocyanine]] (1929), the acrylic plastic ''[[Polymethyl methacrylate|Perspex]]'' (1932),<ref name=history/> [[Dulux paint]]s (1932, co-developed with DuPont),<ref name=history/> [[polyethylene]] (1937)<ref name=history/> and [[Polyethylene terephthalate]] fibre known as [[Terylene]] (1941).<ref name=history/>

ICI also owned the [[Sunbeam (motorcycle)|Sunbeam motorcycle]] business, which had come with Nobel Industries, and continued to build [[motorcycle]]s until 1937.<ref>[http://www.classicglory.com/sunbeam.htm Why the BSA badge? A brief History]</ref>

In the 1940's and 50's the Company established its pharmaceutical business and developed a number of key products including [[Proguanil|Paludrine]] (1940s, an anti-[[malaria]]l drug),<ref name=history/> [[halothane]] (1951, an anaesthetic agent), [[Gramoxone]] (1962, a pesticide),<ref name=history/> Inderal (1965, a [[beta-blocker]]),<ref name=history/> [[brodifacoum]] (a rodenticide) in 1974,<ref>[http://www.abcbirds.org/abcprograms/policy/pesticides/Profiles/brodifacoum.html Profile: Brodifacoum]</ref> [[tamoxifen]] (1978, a frequently used drug for [[breast cancer]]),<ref name="isbn0-471-89979-8">{{cite book | author = Sneader, Walter | title = Drug discovery: a history | publisher = Wiley | location = New York | year = 2005 | pages = 472 pages | isbn = 0-471-89979-8 | oclc = | doi = }}</ref> and [[PEEK]] (1979, a high performance [[thermoplastic]]).<ref name=history/> ICI formed ICI [[Pharmaceuticals]] in 1957.

The Company acquired ''Atlas Chemicals'', a major [[United States|US]] competitor in 1971.<ref name=history/>

During the 1980's (from 1982 to 1987) the Company was led by the [[charisma]]tic [[John Harvey Jones]].<ref>{{citeweb|url=http://icwales.icnetwork.co.uk/business-in-wales/business-news/2008/01/12/from-bullying-to-the-top-of-industry-91466-20342758/|title=From bullying to the top of industry|publisher=icWales|date=January 12 2008|accessdate=2008-01-15}}</ref> Under his leadership the Company acquired the ''Beatrice Chemical Division'' in 1985 and ''Glidden Coatings & Resins'', a leading [[paint]]s business in 1986.<ref>[http://query.nytimes.com/gst/fullpage.html?res=9B0DE3DC113FF93AA35750C0A961948260 New Chairman of ICI praises planned agenda]</ref>

In 1991 ICI sold the agricultural and merchandising operations of ''BritAg'' and ''Scottish Agricultural Industries'' to [[Norsk Hydro]].<ref>[http://www.alacrastore.com/storecontent/Thomson_M&A/Hydro_Fertilizers_Norsk_Hydro_acquires_Britag_Industries_Ltd_ICI_PLC_from_Akzo_Nobel_NV-211311040 Norsk Hydro acquires Britag Industries]</ref>

In 1991, the company successfully fought off a hostile takeover bid from the [[Hanson plc]] conglomerate.<ref>[http://query.nytimes.com/gst/fullpage.html?res=9E0CE5DC1E3DF93BA25756C0A967958260&sec=&spon=&pagewanted=all Often-ravenous Hanson takes a taste of ICI]</ref>

In 1993 the company demerged its pharmaceutical bioscience businesses: pharmaceuticals, [[agrochemicals]], specialities, [[seed]]s and [[Biology|biological]] products were all transferred into a new and independent company called [[Zeneca Group]] (which subsequently merged with [[Astra AB]] to form [[AstraZeneca]] PLC).<ref>[http://www.iht.com/articles/1993/02/25/ici_.php Will bad timing spoil ICI's plan to split in two?]</ref>

In 1997 ICI acquired ''National Starch & Chemical'', the specialty chemicals business of [[Unilever]] for $8bn.<ref>http://www.highbeam.com/doc/1G1-19716641.html National Starch sold to ICI]</ref> This step was part of a strategy to move away from cyclical bulk chemicals and up the value chain to be a higher growth, higher margin business.<ref name=history/> Later that year it went on to buy ''Rutz & Huber'', a [[Switzerland|Swiss]] paints business.<ref>[http://findarticles.com/p/articles/mi_qn4158/is_/ai_n9647314 ICI buys Swiss Paints Group]</ref>

Disposals of bulk chemicals businesses at that time included the sale of its Australian subsidiary, [[Orica|ICI Australia]], for £1bn in 1997,<ref>[http://query.nytimes.com/gst/fullpage.html?res=9E07E4DD1439F93AA35756C0A961958260 ICI Australia shares drop sharply]</ref> and of its [[polyester]] chemicals business to [[DuPont]] for $3bn also in 1997.<ref>[http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14124746 ICI sell off raises $3bn]</ref>

Then the following year it bought ''Acheson'', an electronic chemicals business.<ref>[http://www.allbusiness.com/company-activities-management/company-structures/9186096-1.html ICI buys Acheson for $560 million in move to strengthen specialties]</ref>

In 2000 ICI sold its [[petroleum]] business at [[Teesside]] and ''Tioxide'', its [[titanium dioxide]] subsidiary, to [[Huntsman Corporation]] for £1.7bn.<ref>[http://www.guardian.co.uk/business/1999/apr/15/11 Bayer and ICI sell-offs to boost balance sheets]</ref> It also sold the last of its industrial chemicals businesses to [[Ineos]] for £0.3bn.<ref>[http://findarticles.com/p/articles/mi_hb4250/is_/ai_n13187383 ICI Sells Its Last Industrial Chemical Operations to Ineos]</ref>

In 2006 the Company sold ''Quest Fragrance'', its [[flavour]]s business, to [[Givaudan]], for £1.2bn<ref>[http://news.bbc.co.uk/1/hi/business/6171816.stm ICI sells flavours business Quest]</ref> and ''Uniqema'', its [[skincare]] business, to [[Croda International]], for £410m.<ref>[http://www.telegraph.co.uk/finance/2942240/ICI-to-slash-debts-with-andpound410m-Uniqema-sale.html ICI to slash debts with £410m Uniqema sale]</ref>

===Takeover by Akzo Nobel===
Dutch firm [[Akzo Nobel]] (owner of Crown Berger paints) bid £7.2 billion (€10.66 billion or $14.5 billion US) for ICI in June 2007. An area of concern about a potential deal was ICI's British [[pension fund]], which had future liabilities of more than £9 billion at the time.<ref>{{cite news
| title=Dutch poised to clinch £8bn ICI takeover
| date=2007-08-05
| publisher=[[The Times]]
| url=http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2198016.ece
| accessdate = 2008-01-05}}</ref> Regulatory issues in the UK and other markets where [[Dulux]] and Crown Paints brands each have significant market share were also a cause for concern for the boards of ICI and Akzo Nobel. In the UK, any combined operation without [[divestment]]s would have seen Akzo Nobel have a 54% market share in the [[paint]] market.<ref name='bbcnews'>{{cite news
| title=ICI snubs second offer from Akzo
| date=2007-07-30
| publisher=[[BBC News]]
| url=http://news.bbc.co.uk/1/hi/business/6921779.stm
| accessdate = 2007-07-30}}</ref> The initial bid was rejected by the ICI board and the majority of shareholders.<ref>{{cite news
| title=ICI rejects £7.2bn bid approach
| date=2007-06-18
| publisher=[[BBC News]]
| url=http://news.bbc.co.uk/1/hi/business/6762607.stm
| accessdate = 2008-01-05}}</ref> However, a subsequent bid for £8 billion (€11.82 billion) was accepted by ICI in August 2007, pending approval by regulators.<ref name='bbcnews2'>{{cite news
| title=ICI agrees to be bought by Akzo
| date=2007-08-13
| url=http://news.bbc.co.uk/1/hi/business/6943609.stm
| publisher=BBC News
|accessdate = 2007-08-13}}</ref>

As of 8.00am on 2 January 2008 ICI PLC became a [[subsidiary]] of Akzo Nobel NV.<ref name="mergerdone" /> Shareholders of ICI received either £6.70 in cash or Akzo Nobel loan notes to the value of £6.70 per 1 nominal ICI share. The adhesives business of ICI was transferred to [[Henkel]] as a result of the deal,<ref>{{cite news
| title=Henkel to pay $5.5 bln for ICI units: Akzo
| date=2007-08-06
| publisher=[[Reuters]]
| url=http://uk.reuters.com/article/partiesNews/idUKWLB020220070806
| accessdate = 2008-01-05}}</ref> while Akzo agreed to sell its Crown Paints subsidiary to satisfy the concerns of the [[European Commissioner for Competition]].<ref name='bbcnews3'>{{cite news
| title=Akzo Nobel to sell Crown paints
| date=2007-12-14
| publisher=BBC News
| url=http://news.bbc.co.uk/1/hi/business/7143950.stm
| accessdate = 2008-01-05}}</ref>

The areas of concern regarding the ICI UK pension scheme were addressed by ICI and Akzo.<ref>[http://www.icipensionfund.org.uk/ ICI Pension Fund Web Site.]</ref>

==Operations==
ICI operated a number of chemical sites around the world. In the UK the main plants were situated as follows:

*[[Billingham]] and [[Wilton, Redcar and Cleveland|Wilton]] (on [[Teesside]]): ICI used the site to manufacture [[fertiliser]]s in the 1920's and went on to produce plastics at [[Billingham]] in 1934. During [[World War II]] it manufactured [[synthetic]] [[ammonia]] for [[explosive]]s.<ref>[http://www.bbc.co.uk/nationonfilm/topics/chemical-industry/background.shtml The white heat of new technology]</ref> The former ''ICI Billingham Division'' of split into the ''ICI Heavy Organic Chemicals Division'' and ''ICI Agricultural Division'' in the 1960's. From 1971 to 1988 ICI operated a small [[General Atomics]] [[TRIGA]] Mark I [[nuclear reactor]] at its Billingham factory.<ref>[http://www.thisisstockton.co.uk/billingham/History_of_Billingham.asp History of Billingham]</ref>

*[[Blackley]] (in [[Manchester]]): ICI used the site to manufacture [[dyestuff]]s. The dye business, known as the ''ICI Dyestuffs Division'' in the 1960's, went through several reorganizations. Through the years it was combined with other specialty chemicals businesses and became ''ICI Colours and Fine Chemicals'' and then ''ICI Specialties''.<ref>[http://www.colorantshistory.org/BritishDyestuffs.html British Dyestffs Corporation and ICI]</ref>

*[[Runcorn]] (in [[Cheshire]]): ICI used the site to manufacture [[chlorine]] and [[caustic soda]].<ref>[http://news.bbc.co.uk/1/hi/business/the_company_file/248210.stm ICI cuts 1,000 jobs]</ref> For many years it was known as ''ICI Mond Division'' but later became part of the ''ICI Chemicals and Polymers Division''. The [[Runcorn]] site was also responsible for the development of the HiGEE and Spinning Disc Reactor concepts, which were developed by [[Professor]] Colin Ramshaw and which led to the concept of [[Micro process engineering|Process Intensification]]: research into these novel technologies is now being pursued by the Process Intensification Group at [[Newcastle University]].<ref>[http://www.ccdcindia.com/index2.php?act=service&sub=1 Process Intensification]</ref>

==References==
{{reflist|2}}

==External links==
* [http://www.ici.com Official site]
* [http://www.dulux.co.uk Dulux]
* [http://www.nationalstarch.com National Starch and Chemical Company] ICI subsidiary.
* [http://uk.finance.yahoo.com/q/pr?s=ICI.L Yahoo! profile]
* [http://www.orica.com.au Orica]

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Revision as of 17:51, 9 January 2009

Imperial Chemical Industries
Company typeSubsidiary
IndustryChemicals
Founded1926
Defunct2 January 2008 Edit this on Wikidata
HeadquartersSlough, England, UK
Key people
Peter Ellwood (Chairman)
John McAdam (CEO)
ProductsPaints & speciality chemicals
Revenue£4,845 million GBP (2006)
£502 million GBP (2006)
£295 million GBP (2006)
OwnerAkzo Nobel
Number of employees
29,130 (2006)
Websitewww.ici.com

Imperial Chemical Industries (ICI) is a British chemical subsidiary of a Dutch conglomerate and one of the largest chemical producers in the world. It is based in Slough, UK. It produces paints and speciality products (including ingredients for foods, specialty polymers, electronic materials, fragrances and flavours). It employs around 29,000 people and had a turnover of just over £4.8 billion in 2006. The Company was once a constituent of the FTSE 100 Index but since January 2008 it has been a subsidiary of Dutch chemicals group Akzo Nobel,[1] which is in the process of fully integrating the two companies.[2]

History

Development of the business

The Company was founded in December 1926 by way of the merger of four companies — Brunner Mond, Nobel Explosives, the United Alkali Company, and British Dyestuffs Corporation.[3] It established its Head Office at Millbank in London in 1928.[3]

Competing with DuPont and IG Farben, the new company produced chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, and paints.[3] In its first year turnover was £27m.[3]

In the 1920's and 30's the Company played a key role in the development of new chemical products, including the dyestuff phthalocyanine (1929), the acrylic plastic Perspex (1932),[3] Dulux paints (1932, co-developed with DuPont),[3] polyethylene (1937)[3] and Polyethylene terephthalate fibre known as Terylene (1941).[3]

ICI also owned the Sunbeam motorcycle business, which had come with Nobel Industries, and continued to build motorcycles until 1937.[4]

In the 1940's and 50's the Company established its pharmaceutical business and developed a number of key products including Paludrine (1940s, an anti-malarial drug),[3] halothane (1951, an anaesthetic agent), Gramoxone (1962, a pesticide),[3] Inderal (1965, a beta-blocker),[3] brodifacoum (a rodenticide) in 1974,[5] tamoxifen (1978, a frequently used drug for breast cancer),[6] and PEEK (1979, a high performance thermoplastic).[3] ICI formed ICI Pharmaceuticals in 1957.

The Company acquired Atlas Chemicals, a major US competitor in 1971.[3]

During the 1980's (from 1982 to 1987) the Company was led by the charismatic John Harvey Jones.[7] Under his leadership the Company acquired the Beatrice Chemical Division in 1985 and Glidden Coatings & Resins, a leading paints business in 1986.[8]

In 1991 ICI sold the agricultural and merchandising operations of BritAg and Scottish Agricultural Industries to Norsk Hydro.[9]

In 1991, the company successfully fought off a hostile takeover bid from the Hanson plc conglomerate.[10]

In 1993 the company demerged its pharmaceutical bioscience businesses: pharmaceuticals, agrochemicals, specialities, seeds and biological products were all transferred into a new and independent company called Zeneca Group (which subsequently merged with Astra AB to form AstraZeneca PLC).[11]

In 1997 ICI acquired National Starch & Chemical, the specialty chemicals business of Unilever for $8bn.[12] This step was part of a strategy to move away from cyclical bulk chemicals and up the value chain to be a higher growth, higher margin business.[3] Later that year it went on to buy Rutz & Huber, a Swiss paints business.[13]

Disposals of bulk chemicals businesses at that time included the sale of its Australian subsidiary, ICI Australia, for £1bn in 1997,[14] and of its polyester chemicals business to DuPont for $3bn also in 1997.[15]

Then the following year it bought Acheson, an electronic chemicals business.[16]

In 2000 ICI sold its petroleum business at Teesside and Tioxide, its titanium dioxide subsidiary, to Huntsman Corporation for £1.7bn.[17] It also sold the last of its industrial chemicals businesses to Ineos for £0.3bn.[18]

In 2006 the Company sold Quest Fragrance, its flavours business, to Givaudan, for £1.2bn[19] and Uniqema, its skincare business, to Croda International, for £410m.[20]

Takeover by Akzo Nobel

Dutch firm Akzo Nobel (owner of Crown Berger paints) bid £7.2 billion (€10.66 billion or $14.5 billion US) for ICI in June 2007. An area of concern about a potential deal was ICI's British pension fund, which had future liabilities of more than £9 billion at the time.[21] Regulatory issues in the UK and other markets where Dulux and Crown Paints brands each have significant market share were also a cause for concern for the boards of ICI and Akzo Nobel. In the UK, any combined operation without divestments would have seen Akzo Nobel have a 54% market share in the paint market.[22] The initial bid was rejected by the ICI board and the majority of shareholders.[23] However, a subsequent bid for £8 billion (€11.82 billion) was accepted by ICI in August 2007, pending approval by regulators.[24]

As of 8.00am on 2 January 2008 ICI PLC became a subsidiary of Akzo Nobel NV.[1] Shareholders of ICI received either £6.70 in cash or Akzo Nobel loan notes to the value of £6.70 per 1 nominal ICI share. The adhesives business of ICI was transferred to Henkel as a result of the deal,[25] while Akzo agreed to sell its Crown Paints subsidiary to satisfy the concerns of the European Commissioner for Competition.[26]

The areas of concern regarding the ICI UK pension scheme were addressed by ICI and Akzo.[27]

Operations

ICI operated a number of chemical sites around the world. In the UK the main plants were situated as follows:

  • Blackley (in Manchester): ICI used the site to manufacture dyestuffs. The dye business, known as the ICI Dyestuffs Division in the 1960's, went through several reorganizations. Through the years it was combined with other specialty chemicals businesses and became ICI Colours and Fine Chemicals and then ICI Specialties.[30]
  • Runcorn (in Cheshire): ICI used the site to manufacture chlorine and caustic soda.[31] For many years it was known as ICI Mond Division but later became part of the ICI Chemicals and Polymers Division. The Runcorn site was also responsible for the development of the HiGEE and Spinning Disc Reactor concepts, which were developed by Professor Colin Ramshaw and which led to the concept of Process Intensification: research into these novel technologies is now being pursued by the Process Intensification Group at Newcastle University.[32]

References

  1. ^ a b "Akzo Nobel ICI merger completed". BBC News. 2008-01-02. Retrieved 2008-01-05.
  2. ^ "Akzo Nobel to Focus on Fast and Effective Integration in 2008" (Press release). Akzo Nobel U.K. 7 January, 2008. Retrieved 2008-02-13. {{cite press release}}: Check date values in: |date= (help)
  3. ^ a b c d e f g h i j k l m n ICI: History
  4. ^ Why the BSA badge? A brief History
  5. ^ Profile: Brodifacoum
  6. ^ Sneader, Walter (2005). Drug discovery: a history. New York: Wiley. pp. 472 pages. ISBN 0-471-89979-8.
  7. ^ "From bullying to the top of industry". icWales. January 12 2008. Retrieved 2008-01-15. {{cite web}}: Check date values in: |date= (help)
  8. ^ New Chairman of ICI praises planned agenda
  9. ^ Norsk Hydro acquires Britag Industries
  10. ^ Often-ravenous Hanson takes a taste of ICI
  11. ^ Will bad timing spoil ICI's plan to split in two?
  12. ^ http://www.highbeam.com/doc/1G1-19716641.html National Starch sold to ICI]
  13. ^ ICI buys Swiss Paints Group
  14. ^ ICI Australia shares drop sharply
  15. ^ ICI sell off raises $3bn
  16. ^ ICI buys Acheson for $560 million in move to strengthen specialties
  17. ^ Bayer and ICI sell-offs to boost balance sheets
  18. ^ ICI Sells Its Last Industrial Chemical Operations to Ineos
  19. ^ ICI sells flavours business Quest
  20. ^ ICI to slash debts with £410m Uniqema sale
  21. ^ "Dutch poised to clinch £8bn ICI takeover". The Times. 2007-08-05. Retrieved 2008-01-05.
  22. ^ "ICI snubs second offer from Akzo". BBC News. 2007-07-30. Retrieved 2007-07-30.
  23. ^ "ICI rejects £7.2bn bid approach". BBC News. 2007-06-18. Retrieved 2008-01-05.
  24. ^ "ICI agrees to be bought by Akzo". BBC News. 2007-08-13. Retrieved 2007-08-13.
  25. ^ "Henkel to pay $5.5 bln for ICI units: Akzo". Reuters. 2007-08-06. Retrieved 2008-01-05.
  26. ^ "Akzo Nobel to sell Crown paints". BBC News. 2007-12-14. Retrieved 2008-01-05.
  27. ^ ICI Pension Fund Web Site.
  28. ^ The white heat of new technology
  29. ^ History of Billingham
  30. ^ British Dyestffs Corporation and ICI
  31. ^ ICI cuts 1,000 jobs
  32. ^ Process Intensification

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