A CHEMICAL firm has hailed solid progress after demand for emission systems pushed sales higher.

Johnson Matthey, which has a number of Teesside sites, says its catalysts, known for making vehicle exhaust gases harmless, have bolstered revenues.

The company also brushed off Brexit fears, saying it has plans to continue expanding.

According to its latest results, for the quarter to June 30, the firm saw group sales rise six per cent on a year ago to £822m.

That figure was spearheaded by Johnson Matthey’s emission control technologies division, which recorded sales in excess of £520m.

Officials say the operation was supported by strong European car production, which helped push light-duty catalyst sales 14 per cent higher to £331m.

They added similar manufacturing levels of trucks across the continent meant heavy-duty catalyst revenues held steady at £190m, despite weaker North American demand for a specific type of wagon.

Robert MacLeod, chief executive, said the business was in a good position, adding exchange rate changes, triggered by the Brexit vote, could see full-year underlying operating profits rise by around £25m to £40m.

He added: “It is too early to predict the exact consequences of the UK’s vote to leave the EU.

“However, the board currently believes this will not have a long-term material impact and we will continue to grow by investing in research and development, manufacturing and our employees.”

Johnson Matthey runs Stockton’s Davy Process Technology, which develops processes for the oil, gas and chemical sectors, precious metal producer Chilton and technology firm Tracerco, in Billingham, near Stockton.