(Sharecast News) – Exxon Mobil is to close a chemicals plant in Scotland, the oil major confirmed on Tuesday, citing high costs, difficult market conditions and unfavourable government policies.
The US firm said it would shut the Fife ethylene plant (FEP) in Mossmorran, which employs around 200 people, in February 2026 following an employee consultation.
A further 250 contractors who work for other companies at the facility are also likely to be affected by the closure, according to the Financial Times, which first reported the decision.
Local Labour MP Melanie Ward called the closure “devastating”.
The plant has been operational for 40 years, and in October Exxon announced Teresa Cassar was relocating from Canada to take up the role of plant manager.
However, in a statement Exxon said: “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.”
Calling FEP a “cornerstone” of chemical production in the UK, it said the closure reflected 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.”.
A government spokesman said: “The UK government explored every reasonable avenue to support the site, but Exxon has had significant global challenges, and this move come on the heels of closing another chemical plant in France.”
Chemicals producers across Europe have come under intense pressure in recent years, after energy costs soared in the wake of Russia’s invasion of Ukraine.
The Fife plant produces ethylene through a process known as thermal or steam cracking.
Shell, which processes natural gas liquids on the Mossmorran site, told the BBC it was unaffected by the plant’s closure.
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