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Released November 21, 2025 | GALWAY, IRELAND
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)
Summary
Exxon Mobil Corporation (Spring, Texas) is closing its plastics plant at Mossmorran in Scotland after failing to agree on a path forward with the U.K. government. It has blamed a number of factors for its decision, including the government's current economic and policy environment, poor market conditions, high supply costs and plant efficiency.
End of the Line for Scottish Plastics Plant
Exxon Mobil Corporation (Spring, Texas) is to shut its Fife Ethylene Plant (FEP) at Mossmorran in Scotland with the loss of up to 400 jobs.
The company, which recently threatened to exit Europe over excessive European Union (EU) policies, cited an unfavorable current economic and policy environment under the U.K. government, alongside high supply costs, poor market conditions and plant efficiency. The Scottish plant, which has operated for 40 years making ethylene for the plastics industry, will cease operations in February 2026 with the loss of 179 permanent jobs and roughly 250 contractors. Industrial Info reported last week that ExxonMobil had warned that it will be forced to stop doing business in the EU if it does not make changes to one of its most contentious sustainability laws regarding human rights. For additional information, see November 17, 2025, article--ExxonMobil Threatens to Quit Europe over EU Law.
What ExxonMobil Said
"We considered various options to continue production and tested the market for a potential buyer, but the U.K.'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. FEP has been a cornerstone of chemical production in the U.K. 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 the end of production."
No Help from the Government
The U.K. government said that it will not offer financial aid to keep the plant operational.
U.K. Business Minister Chris McDonald said there was no business case. "The Government and ExxonMobil have been discussing the operating environment of the plant since April. This afternoon, I spoke with Paul Greenwood, the chair of ExxonMobil. It was a commercial decision made when the numbers simply did not add up. He reiterated to me that the site is 40 years old, inefficient and in dire need of modernisation to be commercially viable for the future. The company estimates that it would have cost close to US$1 billion in capital investment to bring the site to a point where it would be profitable. That fact, combined with a challenging petrochemicals market, including a sharp decline in ethane supply in the North Sea, meant that the investment was likely to outweigh the return."
Greenwood said that the plant has been "significantly loss-making" for the last five years, and it would take another five years for any investment to reach its potential.
Hard times for Scottish Industry
Scotland's refining and chemicals sector has already been hit by a number of closures this year. This summer owner/operator Petroineos (London) - a joint venture between Chinese state oil firm PetroChina (Beijing, China) and U.K. chemicals major INEOS Limited (London, England) shut the 150,000-barrel-per-day (BBL/d) refinery at Grangemouth - Scotland's only refinery and one of only six refineries in the U.K. It cited high costs and declining fuel demand in Europe for its decision, which cost 400 jobs. In January, INEOS shut its last synthetic ethanol production plant in the U.K., also at Grangemouth, blaming high energy prices and high carbon taxes.
Challenges Facing U.K. Chemicals Sector
This summer, the country's Chemical Industries Association pointed to sector-wide hardship, citing the cost of energy and international economic uncertainty. Of its members, a third reported falls in sales, production levels and capacity utilisation. Steve Elliott, chief executive of the association, said: "Our members have noted significant price erosion in key markets due to Chinese overcapacity. This fierce international competition, coupled with internationally uncompetitive industrial policies and input costs, is threatening the future of our domestic manufacturing sector. Numerous companies have announced closures, restructuring, strategic reviews or profit warnings over the past 2 years because investment is being re-directed to more competitive locations".
Key Takeaways
- ExxonMobil shutting its Fife Ethylene Plant (FEP) at Mossmorran in Scotland with the loss of up to 400 jobs.
- Blames the government's economic and policies, poor market conditions, high supply costs and plant efficiency.
- The planned closure of Fife follow a number of closures earlier this year at Scotland's leading petrochemical complex at Grangemouth
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