A CHEMICALS company operating North-East plants says changes to pollution control have fuelled its growth.

Johnson Matthey revealed its emission technology division saw sales rise seven per cent, with underlying operating profits 25 per cent higher for the six months to September 30.

Bosses say the increases were helped by tighter legislation across Europe and Asia and stronger demand for heavy duty diesel trucks in the US.

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

However, the company said sales and underlying operating profit on its precious metals division were down ten per cent and 30 per cent respectively, after losses of commission revenue due to changes in an agreement with Anglo American Platinum.

Excluding precious metals, group sales increased two per cent to £1.5bn, with revenue standing at £4.8bn and pre-tax profits standing three per cent higher at £207.8m for the period.

Robert MacLeod, chief executive, added: “We have continued to make good progress in the first half of the year, particularly in emission control.

“Group sales were up by two per cent and were ten per cent ahead if the impact of the change in our contracts with Anglo Platinum and foreign currency translation are excluded.

“In the second half, we expect good underlying growth compared to the same period last year.”