Ciba Speciality Chemicals is to shed 950 jobs as a result of the ongoing integration of Raisio Chemicals, the Finnish paper maker it acquired in March.
The move is expected to save the Swiss group SFr90m per year by 2007 and Ciba said that the purchase of Raisio had already significantly enhanced sales and profits growth.
"The integration gave our third quarter sales a double-digit boost compared to last year," said Armin Meyer, chairman and chief executive.
He added that Raisio's profit margin had been temporarily affected by raw material price increases but said the group had since pushed through price increases that should offset this.
In August Mr Meyer said he did not expect to be seriously affected by rising oil prices, as its specialist activities left it less exposed to volatility than bulk chemicals companies.