Company type | Public |
---|---|
Industry | Chemicals |
Founded | 1926 |
Defunct | 2008 |
Fate | Acquired by AkzoNobel |
Headquarters | London, England, UK |
Key people | Alfred Mond (first CEO) Sir Paul Chambers Sir John Harvey-Jones Dr John McAdam CBE (last CEO) |
Products | General chemicals, plastics, paints, pharmaceuticals & speciality chemicals |
Revenue | £4.85 billion (2006) |
£502 million (2006) | |
£295 million (2006) | |
Number of employees | 29,130 (2006) |
Parent | AkzoNobel |
Imperial Chemical Industries (ICI) was a British chemical company. It was, for much of its history, the largest manufacturer in Britain. [1] Its headquarters were at Millbank in London. ICI was a constituent of the FT 30 and later the FTSE 100 indices.
ICI was formed in 1926 as a result of the merger of four of Britain's leading chemical companies. From the onset, it was involved in the production of various chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, and paints; the firm soon become involved in plastics and a variety of speciality products, including food ingredients, polymers, electronic materials, fragrances and flavourings. During the Second World War, ICI's subsidiary ICI Nobel produced munitions for Britain's war effort; the wider company was also involved with Britain's nuclear weapons programme codenamed Tube Alloys. Throughout the 1940s and 1950s, ICI greatly expanded its activities in the pharmaceutic sector; cumulating in the formation of a dedicated subsidiary, ICI Pharmaceuticals, in 1957.
During 1960, ICI's first outsider to serve as chairman, Paul Chambers, was appointed. Chambers reorganised the company, but fell out of favour following an unsuccessful takeover bid of rival firm Courtaulds. Between 1968 and 1971, Peter Allen was chairman of ICI, during which time Viyella was purchased, the subsidiary Cleveland Potash Ltd was created, and profits dipped. Major moves in the 1970s included the acquisition of the American competitor Atlas Chemical Industries Inc. and the divestment of Imperial Metal Industries. By the late 1980s, ICI which had continued to acquire entities such as the Beatrice Chemical Division and Glidden Coatings & Resins, increasing competition and rising internal complexity were driving ICI towards major restructuring plans, including a demerger. [2]
Considerable changes at ICI came about during the 1990s, particularly in the aftermath of an unsuccessful acquisition attempt in 1991 by Hanson of the firm in what would have been the biggest takeover in British history. That same year, ICI sold its agricultural and merchandising operations of BritAg and Scottish Agricultural Industries to Norsk Hydro; it sold its nylon business to DuPont one year later. In 1993, the firm also de-merged its pharmaceutical bio-science businesses as Zeneca. During 1997, ICI's Australian subsidiary, ICI Australia, was sold in exchange for £1 billion. During 2008, ICI was acquired by AkzoNobel for £8 billion; [3] shortly thereafter, portions of ICI were sold off to Henkel while its remaining operations were integrated within AkzoNodel's existing organisation. [4]
The company was founded in December 1926 from the merger of four companies: Brunner Mond, Nobel Explosives, the United Alkali Company, and British Dyestuffs Corporation. [5] ICI established its head office at Millbank in London in 1928. [5] Competing with DuPont and IG Farben, the new company produced chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, and paints. [5] In its first year, turnover was £27 million. [5]
During the 1920s and 1930s, the company played a key role in the development of new chemical products, including the dyestuff phthalocyanine (1929), the acrylic plastic Perspex (1932), [5] Dulux paints (1932, co-developed with DuPont), [5] polyethylene (1937), [5] and polyethylene terephthalate fibre known as Terylene (1941). [5] In 1940, ICI started British Nylon Spinners as a joint venture with Courtaulds. [6] [7]
ICI also owned the Sunbeam motorcycle business, which had come with Nobel Industries, and continued to build motorcycles until 1937. [8]
During the Second World War, ICI was a major participant in Britain's war economy; its subsidiary ICI Nobel was involved in the production of munitions. [9] [10] The company was involved with the United Kingdom's nuclear weapons programme codenamed Tube Alloys. [11] [12]
In the 1940s and 1950s, the company established its pharmaceutical business and developed a number of key products, including Paludrine (1940s, an anti-malarial drug), [5] halothane (1951, an inhalational anaesthetic agent), propofol (1977, an intravenous anaesthetic agent), [13] Inderal (1965, a beta-blocker), [5] tamoxifen (1978, a frequently used drug for breast cancer), [14] and PEEK (1979, a high performance thermoplastic). [5] ICI formed ICI Pharmaceuticals in 1957.
During the 1950s, ICI developed a material as Crimplene, a thick polyester yarn that was used to make a fabric of the same name. [15] The resulting cloth is heavy and wrinkle-resistant, and retains its shape well. The California-based fashion designer Edith Flagg was the first to import this fabric from Britain to the United States. [16] During the first two years, ICI gave Flagg a large advertising budget to popularise the fabric across America.[ citation needed ]
During 1960, Paul Chambers became the first chairman appointed from outside the company. [17] Chambers employed the consultancy firm McKinsey to help with reorganising the company. [17] Export sales doubled during his eight-year tenure export, however, Chambers' reputation was severely damaged by a failed takeover bid for Courtaulds in 1961–1962. [17] [18]
On 1 August 1962, ICI's operations in Burma were nationalised following a military coup in the country. [19]
In 1964, ICI acquired British Nylon Spinners (BNS), the company it had jointly set up in 1940 with Courtaulds. ICI surrendered its 37.5 per cent holding in Courtaulds and paid Courtaulds £2 million a year for five years, "to take account of the future development expenditure of Courtaulds in the nylon field." In return, Courtaulds transferred to ICI their 50 per cent holding in BNS. [20] BNS was absorbed into ICI's existing polyester operation, ICI Fibres. The acquisition included BNS production plants in Pontypool, Gloucester and Doncaster, together with research and development in Pontypool.[ citation needed ]
Early pesticide development under ICI Plant Protection Division, with its plant at Yalding, Kent, research station at Jealott's Hill and HQ at Fernhurst Research Station included paraquat (1962, a herbicide), [5] the insecticides pirimiphos-methyl in 1967 and pirimicarb in 1970, brodifacoum (a rodenticide) was developed in 1974; in the late 1970s, ICI was involved in the early development of synthetic pyrethroid insecticides such as lambda-cyhalothrin. [21]
Peter Allen was appointed chairman between 1968 and 1971. [22] He presided over the purchase of Viyella. [22] Profits shrank under his tenure. [22] During his tenure, ICI created the wholly owned subsidiary Cleveland Potash Ltd, for the construction of Boulby Mine in Redcar and Cleveland, North Yorkshire. The first shaft was dug in 1968, with full production from 1976. ICI jointly owned the mine with Anglo American, and then with De Beers, before complete ownership was transferred to Israel Chemicals Ltd in 2002. [23]
Between 1971 and 1975, Jack Callard held the position of chairman at the firm. [24] Amid Callard's tenure, company profits almost doubled between 1972 and 1974 while ICI became Britain's largest exporter. [24] In 1971, the company acquired Atlas Chemical Industries Inc., a major American competitor. [5] [25] In 1977, Imperial Metal Industries was divested as an independent quoted company. [26] [27]
Between 1982 and 1987, the company was headed by the charismatic John Harvey-Jones. [28] In 1985, ICI acquired the Beatrice Chemical Division; during the following year, it also bought Glidden Coatings & Resins, a leading paints business. [29] [30]
By the early 1990s, plans were carried out to demerge the company, as a result of increasing competition and internal complexity that caused heavy retrenchment and slowing innovation. [2] In 1991, ICI sold the agricultural and merchandising operations of BritAg and Scottish Agricultural Industries to Norsk Hydro. [31] It also divested its soda ash products arm to Brunner Mond, ending an association with the trade that had existed since the company's inception, one that had been inherited from the original Brunner, Mond & Co. Ltd. [32]
During mid 1991, ICI was subject to an attempted acquisition Hanson; by this point, ICI was commonly being viewed by investors as having been in decline and thus its valuation was depressed, making it more vulnerable to such takeover attempt. [33] [34] Hanson had acquired a 2.8 per cent stake in the company as part of its hostile takeover attempt, which ICI's management team chose to oppose. [35] [36] The envisioned acquisition became hotly contested and controversial, partially as it would have been the biggest takeover in British history at that point. [37] In October 1991, Hanson opted to not proceed with the deal. [33] [2]
In 1992, the company sold its nylon business to DuPont. [38] [39] During 1993, the company de-merged its pharmaceutical bio-science businesses: pharmaceuticals, agrochemicals, specialities, seeds and biological products were all transferred into a new and independent company called Zeneca. [2] Zeneca subsequently merged with Astra AB to form AstraZeneca. [40]
In 1994, Charles Miller Smith was appointed CEO of ICI, one of the few times that an external figure had been appointed to lead the firm, Miller-Smith having previously been a director at Unilever. Shortly afterwards, the company acquired a number of former Unilever businesses in an attempt to move away from its historical reliance on commodity chemicals. During 1995, ICI acquired the American paint companies Devoe Paints, [41] Fuller-O'Brien Paints [42] and Grow Group. [43] In 1997, ICI acquired National Starch & Chemical, Quest International, Unichema, and Crosfield, the speciality chemicals businesses of Unilever in exchange for $8 billion. [44] [45] This step was part of a strategy to move away from cyclical bulk chemicals and to progress up the value chain to become a higher growth, higher margin business. [5] Later that same year, it went on to buy Rutz & Huber, a Swiss paints business. [46]
Having taken on some £4 billion of debt to finance these acquisitions, the company was soon compelled to sell off its commodity chemicals businesses:
Having sold much of its historically profitable commodities businesses, and many of the new speciality businesses which it had failed to integrate, the company consisted mainly of the Dulux paints business, which quickly found itself the subject of a takeover by AkzoNobel.
In June 2007, the Dutch firm AkzoNobel (owner of Crown Berger paints) bid £7.2 billion (€10.66 billion or $14.5 billion) for ICI. An area of concern about a potential deal was ICI's British pension fund, which had a deficit of almost £700 million and future liabilities of more than £9 billion at the time. [58] 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 AkzoNobel. In the UK, any combined operation without divestments would have seen AkzoNobel have a 54 per cent market share in the paint market. [59] The initial bid was rejected by the ICI board and the majority of shareholders. [60] However, a subsequent bid for £8 billion (€11.82 billion) was accepted by ICI in August 2007, pending approval by regulators. [61]
On 2 January 2008, completion of the takeover of ICI plc by AkzoNobel was announced. [3] Shareholders of ICI received either £6.70 in cash or AkzoNobel loan notes to the value of £6.70 per one nominal ICI share. The adhesives business of ICI was transferred to Henkel as a result of the deal, [62] while AkzoNobel agreed to sell its Crown Paints subsidiary to satisfy the concerns of the European Commissioner for Competition. [63] The areas of concern regarding ICI's British pension scheme were addressed by ICI and AkzoNobel. [64]
ICI operated a number of chemical sites around the world. In the UK, the main plants were as follows:
An ICI subsidiary called Duperial operated in Argentine from 1928 to 1995, when it was renamed ICI.
Established in the city of San Lorenzo, Santa Fe, it operates an integrated production site with commercial offices in Buenos Aires. Since 2009 it has made sulphuric acid with ISO certification under the company name Akzo Nobel Functional Chemicals S.A.[ citation needed ]
It also had an operation at Palmira, Mendoza, for its Wine Chemicals Division, that manufactured tartaric acid, wine alcohol and grapeseed oil from natural raw material coming from the wine industry in the provinces of Mendoza and San Juan. This operation held 10% world market share for tartaric acid. It was sold in 2008 and currently operates as Derivados Vínicos S.A. (DERVINSA). [77]
The subsidiary ICI Australia Ltd established the Dry Creek Saltfields at Dry Creek north of Adelaide, South Australia, in 1940, with an associated soda ash plant at nearby Osborne. In 1989, these operations were sold to Penrice Soda Products. [78]
An ICI plant was built at Botany Bay in New South Wales in the 1940s and was part of the Orica demerger in 1997. [79] This plant once manufactured paints, plastics and industrial chemicals such as solvents. It had been detirmined to be the source of the Botany Bay Groundwater Plume contamination of a local aquifer. [79] [80]
In 1968 a subsidiary of Imperial Chemical Industries (ICI) was established in then-East Pakistan. After Bangladesh gained independence in 1971, the company was incorporated on 24 January 1973 [81] as ICI Bangladesh Manufacturers Limited and also as Public Limited Company. The company divested its investment in Bangladesh and was renamed as Advanced Chemical Industries Limited (ACI Limited) on 5 May 1992. The company sold its insect control, air care and toilet care brands to SC Johnson & Son in 2015. [82] Currently Advanced Chemical Industries (ACI) Limited is one of the largest conglomerates in Bangladesh with a multinational heritage operating across the country. [83] The company operates through three reporting divisions: Pharmaceuticals, Consumer Brands and Agribusiness. [84]
ICI maintained offices in Colombo importing and supplying chemicals for manufacturers in Ceylon. In 1964, following import restrictions that allowed only locally owned subsidiaries of multinational companies to gain import licenses, Chemical Industries (Colombo) Limited was formed as an ICI subsidiary with 49% ICI ownership and remaining held public. [85]
The subsidiary ICI New Zealand provided substantial quantities of chemical products – including swimming pool chemicals, commercial healthcare products, herbicides and pesticides for use within New Zealand and the neighbouring Pacific Islands.
A fire at the ICI New Zealand store in Mount Wellington, Auckland, on 21 December 1984, killed an ICI employee and caused major health concerns. Over 200 firefighters were exposed to toxic smoke and effluents during the firefighting efforts. Six firefighters retired for medical reasons as a result of the fire. This incident was a major event in the history of the New Zealand Fire Service and subject to a formal investigation, led by future Chief Justice Sian Elias. The fire was a trigger for major reforms of the service; direct consequences included improved protective clothing for firefighters, a standard safety protocol for major incidents, the introduction of dedicated fireground safety officers, and changes to occupational health regulations. [86] [87]
The chemical industry comprises the companies and other organizations that develop and produce industrial, specialty and other chemicals. Central to the modern world economy, it converts raw materials into commodity chemicals for industrial and consumer products. It includes industries for petrochemicals such as polymers for plastics and synthetic fibers; inorganic chemicals such as acids and alkalis; agricultural chemicals such as fertilizers, pesticides and herbicides; and other categories such as industrial gases, speciality chemicals and pharmaceuticals.
Akzo Nobel N.V., stylised as AkzoNobel, is a Dutch multinational company which creates paints and performance coatings for both industry and consumers worldwide. Headquartered in Amsterdam, the company has activities in more than 150 countries. AkzoNobel is the world's third-largest paint manufacturer by revenue after Sherwin-Williams and PPG Industries.
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. By revenue it is the largest coatings company in the world followed by Sherwin-Williams. It is headquartered in PPG Place, an office and retail complex in downtown Pittsburgh, and is known for its glass facade designed by Postmodern architect Philip Johnson.
Heidelberg Materials UK is a British-based building materials company, headquartered in Maidenhead. Previously known as Hanson UK, the company has been a subsidiary of the German company HeidelbergCement since August 2007, and was formerly listed on the London Stock Exchange and a constituent of the FTSE 100 Index.
Canadian Industries Limited, also known as C-I-L, is a Canadian chemicals manufacturer. Products include paints, fertilizers and pesticides, and explosives. It was formed in 1910 by the merger of five Canadian explosives companies. It was until recently a subsidiary of Imperial Chemical Industries until ICI was purchased by AkzoNobel.
Hammerite is a brand of hammer paint made by Hammerite Products, a subsidiary of AkzoNobel.
Albemarle Corporation is an American specialty chemicals manufacturing company based in Charlotte, North Carolina. It operates 3 divisions: lithium, bromine specialties and catalysts.
Dulux is an internationally-available brand of architectural paint that originated from the United Kingdom. The brand name Dulux has been used by both Imperial Chemical Industries (ICI) and DuPont since 1931 and was one of the first alkyd-based paints. It is produced by AkzoNobel although the North American market is now served by PPG Industries.
Courtaulds was a United Kingdom-based manufacturer of fabric, clothing, artificial fibres, and chemicals. It was established in 1794 and became the world's leading man-made fibre production company before being broken up in 1990 into Courtaulds plc and Courtaulds Textiles Ltd.
Lucky Core Industries Limited, formerly known as ICI Pakistan, is a Pakistani conglomerate company headquartered in Karachi. It manufactures polyester, pharmaceutical, agrochemical, soda ash, and veterinary medicine.
Nobel Enterprises is a chemicals business that used to be based at Ardeer, in the Ayrshire town of Stevenston, in Scotland. Specialising in nitrogen-based propellants and explosives and nitrocellulose-based products such as varnishes and inks. It was formerly ICI Nobel, a division of the chemicals group ICI, but was then sold to Inabata, a Japanese trading firm. The business was sold on to Chemring Group in 2005 and is now a Scottish Company, part of Chemring Group. Stefan Donald is currently the lead engineer for the ongoing regeneration project.
Tata Chemicals Europe is a UK-based chemicals company that is a subsidiary of Tata Chemicals, itself a part of the India-based Tata Group. Its principal products are soda ash, sodium bicarbonate, calcium chloride and associated alkaline chemicals.
British Dyestuffs Corporation Ltd (BDC) was a British company formed in 1919 from the merger of British Dyes Ltd with Levinstein Ltd. The British Government was the company's largest shareholder, and had two directors on the board.
International Paint, abbreviated as International, is a brand of the Marine & Protective Coatings business unit of AkzoNobel.
Specialty chemicals are particular chemical products which provide a wide variety of effects on which many other industry sectors rely. Some of the categories of speciality chemicals are adhesives, agrichemicals, cleaning materials, colors, cosmetic additives, construction chemicals, elastomers, flavors, food additives, fragrances, industrial gases, lubricants, paints, polymers, surfactants, and textile auxiliaries. Other industrial sectors such as automotive, aerospace, food, cosmetics, agriculture, manufacturing, and textiles are highly dependent on such products.
The American Enka Company was an American company that was the nation's largest rayon fiber manufacturer. Founded in 1928, its research division developed such things as Tyrex, improved rayon and nylon, and by-products for detergent makers and paper mills. It helped bolster the economies of Western North Carolina, West Virginia, Eastern Kentucky, Eastern Tennessee, Northern Georgia and Northern Alabama during the Great Depression and thereafter; its founding in 1928 by Dutch capital led the way for German, Swiss, and British investments in the American South, and it was one of the companies on the original Fortune 500 list.
Glidden is an American paint brand, manufactured by PPG Industries.
Hexagon Tower is a specialist science and technology facility located in Blackley, Manchester, England.
The Buxton lime industry has been important for the development of the town of Buxton in Derbyshire, England, and it has shaped the landscape around the town.
The Stowmarket Guncotton Company was an explosives company established in the 19th century by Messrs Prentice that operated a gun-cotton factory in Stowmarket, Suffolk, England. The factory was the scene of an explosion in 1871 that claimed the lives of 28 people.
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: CS1 maint: location missing publisher (link)Leslie, Esther (2023). The Rise and Fall of Imperial Chemical Industries: Synthetics, Sensism and the Environment. London: Palgrave. ISBN 3031374312