BOC, the industrial gases supplier, reported a strong start to its financial year, despite a dip in sales in its UK gas business.

The Surrey group, which has operations in the North-East, including a depot at Teesport employing 90, said its first quarter turnover of £1.06bn was 15 per cent higher than the same period last year, while profits before tax were ahead 16 per cent at £119.4m.

Tony Isaac, chief executive, said the results for the three months to December 31 had been buoyed by the rapid growth of its gases operations worldwide, with sales ahead by ten per cent at £815.4m.

Mr Isaac said the driving forces behind the growth of the gas business included improved demand from Japan and North and South-East Asia.

However, weak manufacturing output led to a decline in sales of some products, including liquified gases, in the UK.

As a result, BOC said operating profits in the UK were marginally lower, with turnover down as well.

However, Teesside continued to be a growth area for the business. In September, it signed a deal to supply hydrogen and steam to chemicals group Huntsman's operations.

BOC is investing about £30m in the construction of a new 32,000-tonnes-a-year hydrogen plant at the Huntsman's North Tees site near Seal Sands.