AN overhaul of pollution control is continuing to fuel the growth of a chemicals firm operating North-East factories.

Johnson Matthey says sales in its emission technology division were nine per cent higher at £435m for the third quarter to December 31.

The increase helped group sales lift five per cent to £745m, with underlying pre-tax profits slightly up at £96.5m.

Bosses say the rises were helped by tighter European legislation for emission catalysts, which help lower pollutants entering the air, with sales of light-duty vehicle catalysts up by five per cent to £266m.

They added its heavy duty diesel catalyst business also increased sales in the US by 16 per cent to £169m.

Johnson Matthey has a site in Billingham, near Stockton, and also runs Billingham-based technology company Tracerco and precious metal producer Chilton, as well as Stockton’s Davy Process Technology.

In its results, the firm also revealed sales across its process technology division were slightly higher at £134m, though precious metals were down three per cent to £92m.

The company previously said it would record losses of commission revenue after changes to an agreement with Anglo American Platinum, which is the world's leading primary producer of platinum group metals.

However, in its report, bosses said they expect to make a higher profit this year.

A statement added: “We continue to expect the group’s underlying profit before tax in 2014/15 to be slightly ahead of 2013/14.

“This is despite the adverse impact from the loss of commission revenue from Anglo Platinum in the first three quarters of the year and the effect of foreign currency translation in the first half.

Johnson Matthey previously agreed a metal supply deal with Anglo and announced a separate contract to provide it with market research services, though the parties said they would stop market development.