ExxonMobil to Close Fife Ethylene Plant Amid Economic Challenges
Published 18 November 2025
Highlights
- ExxonMobil will close the Fife Ethylene Plant in Mossmorran by February, affecting 429 jobs.
- The UK government declined financial support, citing a lack of a viable business plan.
- ExxonMobil blames the UK’s economic and policy environment for the plant's closure.
- The Scottish government plans to support affected workers and explore future site uses.
- Industry leaders warn of broader industrial decline in the UK petrochemical sector.
ExxonMobil has announced the impending closure of its Fife Ethylene Plant in Mossmorran, Scotland, by February, resulting in the loss of up to 429 jobs. The decision, attributed to the UK's challenging economic and policy environment, underscores the difficulties facing the petrochemical industry in the region.
Economic and Policy Pressures
The closure announcement came after ExxonMobil's discussions with the UK government failed to secure financial support. Business Minister Chris McDonald stated in the House of Commons that the plant required nearly £1 billion to become profitable, a figure deemed unsustainable without a realistic business plan. Despite efforts to find a buyer, ExxonMobil concluded that the site lacked a competitive future due to high supply costs and inefficiencies.
Impact on Workers and Community
The closure will directly impact 179 employees and 250 contractors. ExxonMobil has pledged to support affected workers through financial packages, retraining, and potential relocation to its Fawley Petrochemical Complex in Hampshire. Deputy First Minister Kate Forbes expressed disappointment over the decision and announced plans to expand the Grangemouth investment taskforce to include Mossmorran, aiming to mitigate the economic blow to the local community.
Broader Industrial Concerns
Industry body Offshore Energies UK and trade union Unite have voiced concerns about the broader implications of the closure. David Whitehouse, CEO of Offshore Energies UK, warned of a trend towards de-industrialisation, citing the loss of high-value jobs in the domestic oil and gas sector. Unite has urged ExxonMobil to reconsider the closure and explore alternative solutions.
What this might mean
The closure of the Fife Ethylene Plant highlights the challenges facing the UK's petrochemical industry amid evolving economic and policy landscapes. As ExxonMobil prepares to decommission the site, the Scottish government and local authorities will need to collaborate on strategies to attract new industrial investments to the region. The situation also raises questions about the future of the UK's manufacturing sector and the need for policies that support industrial sustainability. Experts suggest that without proactive measures, the UK risks further industrial decline, impacting economic growth and employment.
