THE lower oil price and China’s economic slowdown have hit impacted a chemical firm’s performance.

Johnson Matthey, known for vehicle catalysts that make exhaust gases harmless, said sales were down across some of its divisions in the third quarter to December 31.

The business, which has a site in Billingham, near Stockton, hailed its emission control technologies arm, as Europe-wide demand for catalysts to meet new environmental laws pushed sales six per cent higher to £459m.

However, bosses revealed that success came against difficulties in its process technologies and precious metal products divisions.

They said process technologies suffered from weak demand for catalyst refills, meaning sales were down 11 per cent to £119m, while precious metal products also saw operating profit dip, partly due to the absence of its Gold and Silver Refining division.

The firm previously sold the gold and silver operation, which collected, refined and recycled precious and rare metals from waste materials, to Asahi Holdings, to focus on its chemistry work.

However, a spokesman for Johnson Matthey, which also runs Billingham-based technology firm Tracerco, precious metal producer Chilton, and Stockton’s Davy Process Technology, said it was well placed for long-term success.

He added: “Macroeconomic factors, particularly the low oil price and economic slowdown in China, meant our markets in process technologies and precious metal products remained challenging.

“We expect these to continue for the remainder of the financial year, (but also) expect to deliver a strong final quarter, in line with our normal seasonality.

“Looking ahead, the macroeconomic conditions are expected to limit the group’s short-term growth.

“However, the long-term structural growth drivers for the group’s technologies remain robust and we are well placed to create value as they develop.”