Imperial Chemical Industries

Imperial Chemical Industries (ICI)
Company type	Public
Industry	Chemicals
Founded	1926
Headquarters	London, United Kingdom
Area served	United Kingdom, international
Products	Chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, paints, plastics, pharmaceuticals, food additives, polymers, electronic materials, fragrances, flavourings
Parent	AkzoNobel (from 2008)

Imperial Chemical Industries (ICI) was a prominent British chemical corporation, recognized for being the largest manufacturer in the UK for much of its existence. Its main office was situated in Millbank, London. ICI was publicly traded on the London Stock Exchange and featured as a component of both the FT 30 and later the FTSE 100.

Established in 1926 through the consolidation of four major British chemical firms, ICI's product range included chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, and paints. Over time, it broadened its scope to encompass plastics and specialised products such as food additives, polymers, electronic materials, fragrances, and flavourings. During Second World War, ICI's subsidiary ICI Nobel produced ammunition to support Britain's military efforts; additionally, the company contributed to the UK's nuclear weapons initiative known as Tube Alloys. In the mid-20th century, specifically the 1940s and 1950s, ICI ventured into pharmaceuticals by founding a dedicated division named ICI Pharmaceuticals in 1957.

In 1960, ICI appointed its inaugural external chairman, Paul Chambers, who undertook company reorganisation but lost support following an unsuccessful attempt to acquire competitor Courtaulds. From 1968 to 1971, under chairman Peter Allen’s leadership, ICI purchased Viyella and established the subsidiary Cleveland Potash Ltd, although profitability declined during this period. The 1970s involved acquiring American firm Atlas Chemical Industries Inc. while divesting from Imperial Metal Industries. By the late 1980s, after acquiring Beatrice Chemical Division and Glidden Coatings & Resins, escalating competition and internal challenges prompted ICI to initiate significant restructuring, including a demerger.

The decade of the 1990s ushered in notable transformations following a thwarted takeover bid by Hanson in 1991, which would have become the largest in Britain. That same year, ICI divested its agricultural businesses BritAg and Scottish Agricultural Industries to Norsk Hydro; in 1992 it sold its nylon division to DuPont. In 1993, ICI spun off its pharmaceutical bioscience operations as Zeneca. By 1997, it had sold its Australian branch, ICI Australia, for £1 billion. Eventually in 2008, ICI was acquired by AkzoNobel for £8 billion; subsequent asset sales were made to Henkel, while remaining segments were absorbed into AkzoNobel’s structure.

Early Business Development (1926–1944)

ICI was created in December 1926 through the amalgamation of Brunner Mond, Nobel Explosives, the United Alkali Company, and British Dyestuffs Corporation. The company established its headquarters at Imperial Chemical House in Millbank, London by 1928. Competing with major international firms such as DuPont and IG Farben, ICI manufactured a wide array of products including chemicals, explosives, fertilisers, insecticides, dyestuffs, non-ferrous metals, and paints. Its revenue during the first year reached £27 million.

Throughout the late 1920s and into the 1930s, ICI introduced several significant products: the dyestuff phthalocyanine (1929), acrylic plastic marketed as Perspex (1932), Dulux paints (1932), developed jointly with DuPont, as well as innovations like polyethylene (1937) and the polyester fibre known as Terylene (1941). In 1940, it formed a joint venture with Courtaulds called British Nylon Spinners.

ICI also inherited ownership of the Sunbeam motorcycle brand from Nobel Industries and continued motorcycle production until 1937.

During World War II, ICI was instrumental in supporting Britain’s wartime economy; its subsidiary ICI Nobel was responsible for manufacturing munitions. The company also participated in Britain's nuclear weapons development project referred to as Tube Alloys.

Postwar advancements (1945–1990)

During the 1940s and 1950s, the firm broadened its pharmaceutical portfolio with significant products such as Paludrine (an anti-malaria medication), halothane (introduced in 1951 as an inhalational anesthetic), propofol (an intravenous anesthetic launched in 1977), Inderal (a beta-blocker released in 1965), tamoxifen (breast cancer therapy debuting in 1978), and PEEK (a high-performance thermoplastic developed in 1979).

The 1950s also saw ICI create Crimplene, a resilient polyester fiber utilized in wrinkle-resistant textiles, which was subsequently popularized in the United States by designer Edith Flagg.

In 1960, Paul Chambers became ICI’s inaugural chairman appointed from outside the company. He engaged McKinsey & Company to restructure the organization, resulting in a doubling of export sales during his eight-year leadership, despite reputational damage caused by an unsuccessful takeover attempt of Courtaulds between 1961 and 1962.

Following a military coup on 1 August 1962, ICI’s operations within Burma were nationalized.

In 1964, ICI acquired British Nylon Spinners (BNS) by exchanging its holdings in Courtaulds for full ownership of BNS and agreeing to pay Courtaulds £2 million annually over five years to support future nylon development expenses.

ICI’s Plant Protection Division made strides in pesticide innovation, introducing herbicides such as paraquat in 1962, insecticides including pirimiphos-methyl (1967) and pirimicarb (1970), the rodenticide brodifacoum (1974), and pioneering synthetic pyrethroids like lambda-cyhalothrin in the late 1970s.

Between 1968 and 1971, under Chairman Peter Allen, who oversaw the acquisition of Viyella, profits declined. Additionally, ICI founded Cleveland Potash Ltd to develop the Boulby Mine, which commenced production in 1976 and was eventually fully acquired by Israel Chemicals Ltd in 2002.

Jack Callard led ICI as chairman from 1971 to 1975. His tenure saw profits nearly double between 1972 and 1974, with ICI emerging as Britain’s leading exporter. The company acquired American competitor Atlas Chemical Industries Inc. in 1971 and divested Imperial Metal Industries as an independent entity in 1977.

John Harvey-Jones served as chairman from 1982 until 1987. During this period, ICI expanded by acquiring Beatrice Chemical Division in 1985 and Glidden Coatings & Resins—a major player in the paint industry—in 1986.

Business restructuring (1991–2007)

By the early 1990s, increasing competition and growing internal complexity compelled ICI to adopt a more conservative approach with reduced innovation. In 1991, it sold its agricultural and merchandising divisions of BritAg and Scottish Agricultural Industries to Norsk Hydro and divested its soda ash production unit to Brunner Mond, ending a long-standing relationship.

In mid-1991, Hanson launched a hostile takeover bid for ICI by purchasing a 2.8% stake. The management strongly opposed this attempt, which would have been the largest UK takeover at that time; Hanson withdrew its offer by October of the same year.

The following year, ICI sold off its nylon business to DuPont. In 1993, it spun off its pharmaceutical bioscience operations into Zeneca, which later merged with Astra AB to form AstraZeneca.

Charles Miller Smith was appointed CEO in 1994, bringing external experience from Unilever. Under his leadership, ICI acquired several former Unilever businesses to transition away from commodity chemicals. In 1995, it added US paint companies Devoe Paints, Fuller-O'Brien Paints, and Grow Group to its portfolio. By 1997, ICI purchased National Starch & Chemical, Quest International, Unichema, and Crosfield from Unilever for $8 billion as part of a strategy focused on higher-growth specialty chemicals. The Swiss paint company Rutz & Huber was also acquired during this period.

To fund these acquisitions, ICI incurred £4 billion in debt while divesting several commodity chemical assets:

The Australian subsidiary ICI Australia was sold for £1 billion in 1997,
The polyester chemicals division was sold to DuPont for $3 billion that same year,
In 1998, electronic chemicals business Acheson Industries Inc. was acquired,
By 2000, diisocyanate products, advanced materials, specialty chemicals worldwide operations and titanium dioxide subsidiary Tioxide were sold to Huntsman Corporation for £1.7 billion,
Remaining industrial chemical units were sold to Ineos for £325 million,
Ownership of Boulby Mine transferred to Israel Chemicals Ltd in 2002,
Quest International's flavorings and fragrances business was sold to Givaudan for £1.2 billion in 2006,
The oleochemical business Uniqema was sold to Croda International for £410 million also in 2006.

Following the divestiture of many historically profitable commodity and some specialty businesses that suffered from poor integration, ICI was left primarily with its Dulux paints division. This concentration on paints rendered it vulnerable to acquisition by AkzoNobel in 2007.

Acquisition by AkzoNobel

In June 2007, the Dutch corporation AkzoNobel, known for owning Crown Berger paints, launched a £7.2 billion (€10.66 billion or $14.5 billion) bid to acquire ICI. A major issue was ICI's UK pension fund, which faced a deficit close to £700 million alongside future obligations surpassing £9 billion. Regulatory challenges emerged in the UK and other markets where Dulux and Crown Paints held substantial market shares; without asset sales, AkzoNobel would have controlled 54% of the UK paint sector. ICI’s board and shareholders initially declined the offer. Nevertheless, a revised bid of £8 billion (€11.82 billion) was accepted in August 2007, subject to regulatory clearance.

The takeover of ICI plc by AkzoNobel was finalized on 2 January 2008. Shareholders were compensated with either £6.70 in cash or equivalent AkzoNobel loan notes per nominal ICI share. The adhesives segment was divested to Henkel, while AkzoNobel agreed to sell its Crown Paints division to comply with European competition regulations. The complexities related to ICI’s pension arrangements were amicably settled between the two companies.

Operations

ICI maintained a global network of chemical manufacturing facilities. Key sites within the UK included:

Billingham Manufacturing Plant (Stockton-on-Tees) and Wilton: Fertiliser production commenced at Billingham in the 1920s, followed by plastics manufacturing from 1934. During the Second World War, synthetic ammonia for explosives was produced here. Wilton served as a hub for plastics research and chemical engineering activities. In the 1960s, Billingham Division was divided into Heavy Organic Chemicals and Agricultural sectors. Between 1971 and 1988, the Physics and Radioisotopes Section operated a TRIGA Mark I nuclear reactor generating radioisotopes used in flow and level instrumentation. The Agricultural Division pioneered the 1.5 million litre Pruteen bioreactor for cultivating animal feed, which eventually led to the development of the successful Quorn product.

Blackley (Manchester) and Huddersfield: These locations specialized in dyestuff production. Over time, the dye operations underwent multiple restructurings, evolving into the Organics Division, then ICI Colours and Fine Chemicals, and finally ICI Specialties. Huddersfield also manufactured insecticides (now produced by Syngenta) and chemical additives. By 2004, Huddersfield hosted activities from Syngenta, Avecia, Arch, and Lubrizol.

Buxton (Derbyshire): The Lime Division of ICI acquired Buxton Lime Firms in 1927, overseeing Tunstead Quarry—the largest limestone quarry in the UK. In 1992, this division was sold to Anglo American as part of Tarmac.

Runcorn (Cheshire): This area comprised several sites including Castner-Kellner for chlorine and caustic soda production; Rocksavage works manufactured chlorine-based chemicals such as chloromethanes and CFCs; PVC and hydrogen fluoride were also produced here. Runcorn Heath Research Laboratories supported Mond Division products through R&D and engineering services. The Wigg Works facility was involved in wartime poison gas production. Widnes hosted factories producing herbicides and other chemicals. The site transitioned from being part of ICI Mond Division to ICI Chemicals and Polymers Division. Runcorn was instrumental in developing HiGEE and Spinning Disc Reactor technologies that underpin process intensification research.

Winnington and Wallerscote (Northwich, Cheshire): Established by Brunner and Mond in 1873, Winnington became home to Brunner Mond & Co. Ltd., later integrated into ICI’s Alkali Division. Polythene was discovered here in 1933 during high-pressure experiments. Wallerscote, constructed in 1926, ranked among the largest soda ash plants globally but ceased operations in 1984 as ICI shifted focus towards paints and plastics manufacturing. Winnington Works were sold off to Brunner Mond in 1991, transferred to Tata Chemicals Europe in 2006, and ultimately closed in 2014 after more than a century of soda ash production.

Ardeer (Stevenston, Ayrshire): At this site, ICI Nobel produced dynamite, explosives, nitrocellulose products, nylon fibres, and nitric acid. Nobel Enterprises was divested to Inabata in 2002.

Penrhyndeudraeth (Gwynedd): Cooke's Works specialized in manufacturing nitroglycerine-based explosives until its closure in 1995.

Slough (Berkshire): Served as headquarters for ICI Paints Division.

Additional notable facilities included Stowmarket (white paint production), Prudhoe (Hammerite paint manufacturing), Birmingham (packaging coatings for food and beverage cans), and Welwyn Garden City (Hertfordshire), which housed the headquarters of ICI Plastics Division until the early 1990s.

Argentina

Duperial, a subsidiary of ICI, operated in Argentina from 1928 until 1995, when it was rebranded as ICI. Headquartered in San Lorenzo, Santa Fe, it oversees a fully integrated manufacturing plant complemented by commercial offices located in Buenos Aires. Since 2009, the company has been producing sulphuric acid under the name Akzo Nobel Functional Chemicals S.A., holding ISO certification.

ICI also maintained a facility in Palmira, Mendoza dedicated to its Wine Chemicals Division, where it produced tartaric acid, wine alcohol, and grapeseed oil derived from raw materials supplied by the local wine industry. This site accounted for approximately 10% of the global tartaric acid market. The operation was sold in 2008 and currently functions as Derivados Vínicos S.A. (DERVINSA).

Australia

ICI Australia Ltd developed the Dry Creek Saltfields near Adelaide, South Australia, in 1940, along with a soda ash production plant located at nearby Osborne, South Australia. These assets were divested to Penrice Soda Products in 1989.

In New South Wales, an ICI facility established in the 1940s at Botany Bay manufactured paints, plastics, and industrial chemicals such as solvents. This plant became part of the 1997 demerger that formed Orica. It was later identified as the contamination source for the local aquifer known as the Botany Bay Groundwater Plume.

Bangladesh

In 1968, Imperial Chemical Industries (ICI) founded a subsidiary in what was then East Pakistan. Following Bangladesh's independence in 1971, the company was incorporated on 24 January 1973 as ICI Bangladesh Manufacturers Limited and registered as a Public Limited Company. The company divested its Bangladeshi holdings and was renamed Advanced Chemical Industries Limited (ACI Limited) on 5 May 1992. In 2015, ACI sold its insect control, air care, and toilet care product lines to SC Johnson & Son. Today, ACI stands as one of Bangladesh’s largest conglomerates with multinational roots, operating through three divisions: Pharmaceuticals, Consumer Brands, and Agribusiness.

Sri Lanka

ICI maintained offices in Colombo to supply chemicals to local manufacturers. In response to import controls favoring locally owned subsidiaries in 1964, Chemical Industries (Colombo) Limited was established as an ICI subsidiary with ICI holding a 49% stake and the remainder publicly owned.

New Zealand

ICI New Zealand provided substantial quantities of chemical products—including swimming pool chemicals, commercial healthcare supplies, herbicides, and pesticides—to markets across New Zealand and the Pacific Islands.

A fire occurred at the ICI New Zealand depot in Mount Wellington, Auckland, on 21 December 1984. This tragedy resulted in one employee's death and exposed over 200 firefighters to hazardous smoke. Subsequently, six firefighters retired due to health complications linked to this incident. The event triggered significant reforms within the New Zealand Fire Service such as enhanced protective equipment, standardized safety procedures for major incidents, appointment of dedicated fireground safety officers, and updated occupational health standards. The inquiry into the fire was led by Sian Elias, who later became Chief Justice.