Energy bonus
Feb 1 2008 by Elaine Barnett, Evening Gazette
HIGH energy prices are boosting profits for a major North-East process player as fuel-hungry industries adopt its technology to cut costs.
The catalysts division of Johnson Matthey, which employs about 600 at Belasis Avenue, Billingham, and Davy Process Technology in Stockton, grew sales to £1.04bn - up 32% on the year.
Sally Jones, PR manager for Johnson Matthey, said: “The operations on Teesside supply catalysts to customers in various industries.
“When energy prices are high those businesses want to make the best use of oil, gas and coal, so we see an increase in demand for process products like those created on Teesside.
“Hydrogen is used in cleaning oil, for example, so demand for the catalysts used in making hydrogen increases because when oil prices are high, oil companies use the sort of dirty, heavy oil which requires more cleaning.”
Johnson Matthey’s interim management statement showed its Environmental Technologies division’s sales were well ahead of the third quarter of last year, with sales of heavy- duty diesel catalysts also well ahead of last year.
The company, which shortly hopes to complete the acquisition of German Argillon Group catalysts and advanced ceramic materials, for 214m euros, said that market conditions for process technologies continue to be favourable, with good demand for the syngas catalysts manufactured on Teesside.
Johnson Matthey, which acquired the ICI catalyst business for £260m in 2002, said it was benefiting in particular from strong demand in developing economies, particularly Asia where China’s energy use is approaching 20% of world demand.
The firm, which also acquired Haverton Hill-based Davy Process Technology for £41m in 2006 and formed its process technologies division in 2007, said its catalysts were now used in more than half of global methanol production.
Over one third of global hydrogen production also uses Johnson Matthey catalysts like those produced on Teesside, and the firm is the largest global catalyst supplier with the highest growth with industrial gas companies.
