Demand for platinum is set to increase as the market for products that keep diesel engines running clean is set to boom.

According to Corning, a company that produces filters and similar products for diesel engines, the market could reach $1 billion by 2008.

It is thought tighter emissions standards are the key factor behind the rise in demand, according to Reuters.

Platinum catalysts are used in diesel cars to help control harmful exhaust emissions and emissions legislation is set to boost the demand for a variety of pgms.

Stricter standards are set to come into effect in 2007 in the US and similar rulings are set to be introduced in Asia and Europe.

Corning is just one of the companies expecting to benefit from the move, informing shareholders of its forecasts at its annual meeting.

The company is currently in the final phase of a number of multi-year agreements with three diesel engine manufacturers to help supply products for clean-air diesel and is looking to expand one of its plants.

Sales of diesel products at the firm have increased from $12 million in 2001 to $20 million in the first quarter of this year.