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Grangemouth closure 'not comparable' to British Steel, MPs told

PA Media Cooling towers and industrial facilities with rolling hills in the background PA Media
The industrial complex at Grangemouth employs about 2,000 people

The closure of Grangemouth oil refinery in Scotland is "not comparable" to the situation at British Steel in Scunthorpe, MPs have been told.

Business Secretary Jonathan Reynolds said an emergency law aimed at saving the Lincolnshire site from closure was an "exceptional situation".

SNP Westminster leader Stephen Flynn challenged Reynolds over similarities to the closure of the Scottish refinery on the Firth of Forth - with the loss of 400 jobs.

It came during a rare Saturday sitting of parliament to pass legislation to save the the British Steel plant, opening the door for full nationalisation.

Reynolds told the Commons: "I understand that some have asked about precedent or referenced other troubled industrial situations.

"To be clear again, this is an exceptional situation, a unique situation.

"The question for all members is whether we as a country want to continue to possess a steel industry, do we want to make the construction steel and rail we need here in the UK, or do we want to be dependent on overseas imports?"

Reuters A landscape image of the British Steel works against a blue sky. Two large chimneys can be seen in the background behind a street of housesReuters
The British Steel Scunthorpe site employs 2,700 people

Flynn asked Reynolds whether the Labour party would back a similar bill for Grangemouth.

Scotland's only oil refinery has been marked for closure by owner Petroineos

About 400 of the 2,000 jobs that are based at the industrial complex will be lost.

The Aberdeen South MP said: "Many minds right now will be very much focused on the situation in Grangemouth, where we know that hundreds of jobs are going to be lost directly, thousands of jobs in the supply chain.

"Would the Labour Party back it in the same way as it is backing this Bill today?"

But Reynolds said the UK government had pledged £200m to secure Grangemouth's "long-term future".

He added: "It is not a comparable situation and the behaviour of the company is not comparable to the situation in this case."

A report published last month said up to 800 jobs could be created over the next 15 years at the Grangemouth site

The Project Willow study, funded jointly by the Scottish and UK governments, sets out nine areas where there are potential opportunities for green industries.

It said jobs could be created in areas like sustainable aviation fuel, hydrogen production and plastics recycling but it would require £3.5bn of private investment.

Starmer announced plans to take control of British Steel plant

Brian Leishman, Labour MP for Alloa and Grangemouth, has also called for nationalisation of the Scottish refinery.

He told BBC Radio's Good Morning Scotland there were "striking similarities between Scunthorpe and Grangemouth".

He said: "The government should intervene at Grangemouth to extend refinrery operations until the new energy industies of the future that we are going to need are ready.

"That is the only way that we can really, truly, achieve a just transition for workers and communities.

"The PM recognises the strategic importance of Scunthorpe steel, and he really should do the same for Grangemouth oil."

Prime Minister Sir Keir Starmer said the legislation for British Steel would allow ministers to "take control" of the site and stop its Chinese owner from closing its blast furnaces.

Its owners Jingye said the furnaces were "no longer financially sustainable".

Starmer said steelmaking was "essential for our future" and that he would always "act in the national interest to protect British jobs and British workers".