ExxonMobil Scotland Plant Closure Threatens 400 Jobs

ExxonMobil has announced the impending closure of its Fife Ethylene Plant in Cowdenbeath, Scotland, with production set to cease in February 2026, subject to employee consultations. This decision places approximately 400 jobs in jeopardy, impacting 179 ExxonMobil employees and around 250 contractors. The company cited a challenging UK economic and policy environment, coupled with high operational costs, as key factors in its inability to secure a competitive future for the facility.

The closure, which follows failed attempts to find a buyer, has been met with concern from Scottish government officials. Kate Forbes, Scotland's deputy first minister, described the situation as a "significant blow" to the nation's economy and announced the formation of a task force to explore support measures for affected workers. Murdo Fraser, Scottish Conservative shadow cabinet secretary, also expressed strong criticism, attributing the closure to "high-tax, low-growth policies" and a "hostile environment" for the oil and gas sector.

This event underscores broader challenges within Britain's petrochemical sector, including competition from global markets and specific policy concerns. The omission of ethylene imports from the proposed carbon border adjustment mechanism is seen as disadvantaging domestic producers. ExxonMobil has stated its priority is to support its workforce through this transition, ensuring safe operations until the end of production before commencing site cleanup and demolition.