US oil giant ExxonMobil is closing a chemicals plant in Scotland, putting hundreds of jobs at risk.
ExxonMobil had been in talks with the UK government but did not secure what it required for the facility’s future.
The closure of the Fife Ethylene Plant in Cowdenbeath will impact 179 ExxonMobil employees and around 250 contractors, ‘with the opportunity for 50 employees to transfer to the Fawley Petrochemical Complex’, ExxonMobil told the Daily Mail.
Kate Forbes, Scotland’s deputy first minister, said the closure and job losses represented a ‘significant blow’ to Scotland’s economy.
Forbes said the Scottish government would set up a task force to discuss what actions it could take, but urged the UK government to consider how it could support affected workers.
Mossmorran consists of two neighbouring facilities, the Fife Natural Gas Liquids plant operated by Shell, and the Fife Ethylene Plant operated by ExxonMobil, which manufactures the base material for plastics. Shell’s plan remains unaffected.
Closure: The The ExxonMobil Fife Ethylene Plant in Cowdenbeath is closing next year
ExxonMobil said it had been seeking a buyer for several months, adding that it would clean up and then demolish the site once production ends.
In a statement seen by the Daily Mail, ExxonMobil said: ‘We plan to shut down our Fife Ethylene Plant in February 2026, subject to a full employee consultation.
‘We considered various options to continue production and tested the market for a potential buyer, but the UK’s current economic and policy environment combined with market conditions, high supply costs and plant efficiency do not create a competitive future for the site.’
It added: ‘FEP has been a cornerstone of chemical production in the UK for 40 years, and its closure reflects the challenges of operating in a policy environment that is accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide.
‘We understand and regret the impact this will have on our loyal and valued workforce, contractors and local communities. Our priorities are now to support our people through this challenging period, while ensuring continued safe operations through to end of production.’
In June, unions warned of an ‘avalanche’ of job losses at Mossmorran as contractors made scores of staff at the site redundant.
The oil and gas sector is losing jobs as production in the North Sea dwindles, a trend lobbyists claimed was exacerbated by the government’s decision to hike windfall taxes on producers.
The proposed closure also highlights the challenges for Britain’s petrochemical sector, which faces competition from rivals in China and elsewhere flooding global markets with cheap imports.
Scottish Conservative shadow cabinet secretary for business, economy, tourism and culture, Murdo Fraser, said: ‘The proposed closure of Mossmorran is yet another hammer blow for the Scottish economy that will cost hundreds of jobs at the plant.’
He added: ‘It will also affect many other suppliers and contractors and, in the wake of the redundancies at Grangemouth, have a devastating impact on the local community.
‘Scotland’s industrial capacity is being hollowed out.
‘The high-tax, low-growth policies of both Labour and the SNP – and the hostile environment created for the oil and gas sector – are having a catastrophic impact on Scotland and both governments must now take urgent action to limit the damage this decision will undoubtedly cause.’
Failed talks: ExxonMobil had been in talks with the UK government but did not secure what it required
One area of concern flagged by Britain’s petrochemicals sector, according to the Financial Times, is the omission of refineries and chemical plants from Labour’s planned carbon border adjustment mechanism, which is due to come into force in January 2027.
Under the proposed scheme, importers of certain goods such as cement, fertiliser and aluminium, will pay an equivalent cost for the carbon emissions associated with production.
But, importers of ethylene into Britain will not, at least initially, have to make these payments, leaving domestic producers such as Exxon’s Fife plant in a less competitive position.
Last month, Paul Greenwood, ExxonMobil’s UK chair, told a parliamentary hearing there was ‘an absolute catastrophe waiting to happen’ in the UK’s refinery industry, if carbon costs continued rising for domestic producers.
In April, Scotland’s only refinery stopped processing crude oil after a century of production.
Petroineos, the owners of the Grangemouth plant, which opened in 1924, confirmed the site would import finished transport fuels such as petrol and diesel from after the shift.
The shutdown was confirmed in an email to staff just hours before the SNP Government held a Holyrood debate on ‘supporting Scottish industry’, including Grangemouth.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
#ExxonMobil #close #Scotland #plant #putting #hundreds #jobs #risk
