THE firm that owns Llanwern steelworks says it has turned around its European business when it announced profits of £1.2 billion.

Mumbai-based Tata Steel says the company's earnings for 2010-11 financial year were up by £1.5 billion on the previous year, when the company made a £276 million loss.

It’s European profits before interest, tax and other factors rose by £764 million to £578 million, while its Indian operations also saw its highest ever profits of £944 million.

A spokesman for Tata Steel in Wales said the bulk of the European profits could be attributed to the performance of the firm’s strip products business, which Llanwern steelworks is a part of.

He said over the last year Llanwern had played a major role in the division and that its hot rolling mill has been “very busy” over the last 12 months.

Uday Chaturvedi, chief technical officer for Tata Steel Europe, said the results demonstrated how the group is sustaining itself as it emerges from the downturn.

“Wales is steel country,” said Mr Chaturvedi. “The strip business serves vital markets in the construction, automotive, electrical appliance and packaging sectors.”

“We have a product chain here: we are an anchor for the Welsh economy and we are woring together with the Welsh Government to realise our long term future of positive development”

However, Tata Steel said it “continues to face significant challenges” in its European long products division where it last week announced 1,200 jobs cuts in Scunthorpe and 300 in Teeside.