US oil giant ExxonMobil announced on November 18, 2025, that it will shut down its Fife Ethylene Plant in Mossmorran, Scotland, next February, endangering hundreds of jobs in the region. The decision comes after failed talks with the UK government and highlights ongoing struggles in Europe’s chemical sector amid high costs and policy hurdles.
Announcement Hits Fife Hard
Workers at the 40-year-old facility near Cowdenbeath learned of the closure plans during a meeting that morning. The plant, which produces ethylene for plastics, has been a key part of local industry for decades. ExxonMobil stated it explored selling the site but found no viable buyers due to tough market realities.
The shutdown will affect 179 direct employees and about 250 contractors, totaling around 430 jobs at immediate risk. Company officials noted that roughly 50 staff members could shift to the Fawley Petrochemical Complex in southern England. This move leaves families and communities bracing for economic fallout in an area already reeling from recent industrial losses.
Local leaders expressed shock at the speed of the news. The facility’s role in manufacturing base materials for everyday products like packaging and bottles underscores its importance to supply chains across the UK.
Key Reasons for the Plant Shutdown
ExxonMobil pointed to a mix of factors driving the closure, rooted in broader industry challenges. High energy and supply costs have plagued European producers since global events like the Ukraine conflict spiked prices years ago. The plant’s aging setup also makes it hard to compete with newer operations elsewhere.
Weak demand for chemicals in Europe adds to the pressure, as markets shift toward more efficient global rivals in North America and the Middle East. ExxonMobil specifically called out the UK’s policy landscape, saying it speeds up the loss of vital manufacturing and high-skill jobs.
Here are the main reasons cited:
- Soaring energy costs that outpace competitors.
- Declining market conditions for ethylene products.
- Outdated infrastructure after 40 years of service.
- Unfavorable government policies on industry support.
These issues mirror troubles at other sites, such as the Grangemouth refinery closure earlier this year, which wiped out over 400 positions and sparked debates on energy security.
Government and Union Reactions
Scotland’s Deputy First Minister Kate Forbes labeled the closure a major hit to the economy, stressing its role in high-value employment. She announced a task force to explore aid options and pressed the UK government for more help, including energy cost relief for workers.
The UK side regrets the move but views it as a business choice, with no direct funding pledged. Officials promise job transition programs, but critics argue this falls short amid rising living expenses.
Unions like Unite and GMB voiced strong opposition, demanding ExxonMobil pause the plans and negotiate better terms. They highlighted the company’s record profits of over $25 billion last year, questioning why Fife bears the brunt. GMB’s Robert Deavy warned of “economic carnage” from rushed industry rundown, urging ministers to shield supply chains and offshore jobs.
Scottish Conservative Murdo Fraser blamed high taxes and anti-oil policies from both Labour and SNP governments, calling for urgent fixes to halt further damage.
| Stakeholder | Response Summary | Key Actions Proposed |
|---|---|---|
| Scottish Government | Significant economic blow; task force setup | Support for workers, urge UK aid on energy costs |
| UK Government | Commercial decision; regret expressed | Job transition programs, no financial support |
| Unions (Unite, GMB) | Demand withdrawal of closure threat | Negotiate safeguards, protect supply chains |
| ExxonMobil | Regret impact; support transition | Employee consultation, 50 transfers to England |
This table outlines how different groups are addressing the crisis, showing a divide between calls for action and limited commitments.
Wider Economic and Industry Fallout
The closure fits a pattern of decline in Scotland’s industrial heartlands. Just months ago, Grangemouth’s shutdown echoed similar woes, leaving communities to rebuild. Mossmorran, shared with Shell’s unaffected gas liquids plant, now faces partial emptiness, potentially disrupting local suppliers and services.
On a European scale, chemical firms grapple with uncompetitive energy prices, leading to more shutdowns. ExxonMobil’s global restructuring, including 2,000 job cuts in the EU and Canada, signals a pivot away from high-cost regions. For Scotland, this risks hollowing out manufacturing, with experts warning of lost skills and reduced energy independence.
Residents near the site have long dealt with flaring and emissions, but job losses bring new worries about community vitality. Social media buzz from Fife locals and workers highlights fears of a “ghost town” effect, tying into national talks on green transitions without ignoring fossil fuel realities.
Support Options and Future Outlook
ExxonMobil pledges aid during consultations, focusing on safe operations until shutdown. Workers may access retraining or relocation help, though details remain vague. The task force aims to link affected staff with openings in renewables or other sectors, building on lessons from Grangemouth.
Looking ahead, pressure mounts for policy shifts to bolster industry. Lower energy tariffs or incentives could stem future exits, but experts doubt quick fixes amid global shifts. For now, Fife’s resilience will test how well governments balance economic needs with environmental goals.
Share your thoughts on this closure in the comments below and spread the word to raise awareness for the impacted workers.
