Tata Steel's European operations were boosted by the sale of its Teesside Cast Products (TCP) plant at Redcar in the first half of the year, although a "testing" summer saw earnings plunge.

Tata Steel Europe, which employs about 1,400 workers in this region, reported earnings of £310m in the six months to September, 8per cent up from the £287m in the first half of last year.

However this included the TCP settlement credit of £88m following the sale of the plant to Thai firm Sahaviriya Steel Industries (SSI) in March.

Tata Steel Europe chief executive Dr Karl-Ulrich Kohler said higher raw material costs and lower average selling prices made the normally quiet summer quarter particularly testing.

Its second quarter earnings of £65m was 42.8per cent down from the £113m reported in the same period last year.

India based Tata Steel Group's profit after tax during the first half of the year was £714m compared to £488m in the corresponding period last year.