Synergies with ICI, the British chemicals group Akzo Nobel bought last year, 'combined with... additional net cost savings, will result in a total reduction of 3,500 jobs by 2011,' the company said in a statement.

It also said it was postponing a programme to buy back 1.6 billion euros (S$3.2 billion dollars) in shares due to the crisis hitting world banks.

'Given the current volatile situation in the global financial markets the company has decided to defer the remaining 1.6 billion euros of the current program,' it said.

AkzoNobel employs 60,000 people around the world and makes products such as Dulux paint. -- AFP