THE company behind a steel firm employing more than 1,500 North-East workers says production has increased.

Bosses at Tata Steel, which has plants in Middlesbrough, Redcar, Skinningrove, in east Cleveland, and Hartlepool, says it produced 2.2 million tonnes of steel between July and September, a rise of 18 per cent, in its Indian operations.

The results come after the firm revealed record £1.2bn losses for the year in July, blaming weaker European demand and the economic downturn.

However, the group said it was committed to the North-East and rejected claims it was looking to sell its European steel operation to reduce debts.

Its Hartlepool pipemill previously secured a £100m order to supply a 214-mile gas pipeline in the Gulf of Mexico, with its special profiles plant in Skinningrove providing steel for track shoes on earthmovers.

Tata Steel Europe employs 32,500 workers, including about 19,000 in Britain, with its main operations based in Teesside, Port Talbot, in south Wales, and Scunthorpe.

It has invested about £13m in its North-East sites during the past year and recruited 22 apprentices in September.