AN ongoing drive to lower vehicle emissions has continued to strengthen a chemicals firm.

Johnson Matthey says increasing demand for vehicle catalysts has pushed group sales higher.

The business has a site in Billingham, near Stockton, and its catalysts are increasingly used by global car makers to make exhaust gases harmless.

Bosses said the clamour meant its emission control technologies division (ECT) recorded sales of £478m for the first quarter to June 30.

The figure was eight per cent higher than last year, helped by the needs of China and the US, which pushed overall group sales up six per cent to £797m.

A spokesman said: “ECT performed well and sales of light-duty vehicle catalysts grew ten per cent to £289m, well ahead of flat global car production.

“This good result was supported by increasing sales of higher value catalysts, as the legislation approaches full implementation, and by continued solid demand for cars in China.

“Our heavy-duty diesel catalysts sales also increased by four per cent to £189m, benefiting from ongoing robust demand for larger trucks in the US, which we expect to continue for the remainder of 2015.”

The company, which also runs Billingham-based technology firm Tracerco, precious metal producer Chilton, and Stockton’s Davy Process Technology, revealed the ECT successes offset a stabilisation across its process technologies division, which supplies catalysts and products to the oil and gas sector.

Bosses added sales across its precious metals products business were 15 per cent lower at £85m, as falling prices and the disposal of its Gold and Silver Refining division took effect.

The company sold its gold and silver business, which collected, refined and recycled precious and rare metals from waste materials, to Asahi Holdings, to focus more strongly on its chemistry work.

The spokesman added: “Process technologies sales were up nine per cent at £130m, though operating profit was lower, and the pace of licensing activity, particularly in China, remained sluggish.

“The diagnostic services businesses felt the impact of the slowdown in oil and gas markets, which will continue to weigh on its performance.

“Precious metal products saw operating profit adversely impacted, partly as a result of the disposal of the Gold and Silver Refining business, but also due to substantially lower average platinum group metal prices.”