Hundreds of jobs are at risk as global energy giant ExxonMobil will close its manufacturing plant in Fife.
The Mossmorran-based Fife Ethylene Plant, which manufactures fundamental components for plastic production, will cease operations following four decades of chemical manufacturing in the UK.
The announcement represents a further setback for Scotland’s industrial landscape, arriving months after Grangemouth’s oil refinery terminated operations following more than 100 years of activity.
That closure resulted in over 400 redundancies at the central belt facility, with Petroineos attributing the decision to escalating operational expenses.
The Fife facility has served as a significant contributor to Britain’s chemical production sector throughout its 40-year operational history.
ExxonMobil attributed the shutdown to Britain’s “current economic and policy environment combined with market conditions, high supply costs and plant efficiency” which fail to establish a viable future for the facility.
The corporation revealed it had explored multiple alternatives to maintain operations and attempted to locate a purchaser for the site, but these efforts proved unsuccessful.
In its announcement, the company stated: “FEP has been a cornerstone of chemical production in the UK 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.”
The Mossmorran-based Fife Ethylene Plant will cease operations in the UK
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The firm acknowledged the consequences for its employees, stating: “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 end of production.”
A UK Government spokeswoman said: “We know this will be an incredibly difficult time for workers and their families, and the UK Government stands ready to support through the Department for Work and Pensions’ rapid response service and their involvement in PACE.
“This is, of course, a commercial decision for the company to take.
About 200 direct jobs will be put at risk by the move
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“The UK Government explored every reasonable avenue to support the site, but Exxon has had significant global challenges, and this move comes on the heels of closing another chemical plant in France.
“Our focus now must be on supporting the workforce in the months ahead.”
A senior UK Government source said there had been “extensive” engagement with the company ahead of the announcement.
Scotland Deputy First Minister Kate Forbes said she was “extremely disappointed”.
“The news of the expected closure of the Fife Ethylene Plant and the loss of such high-value jobs is a very significant blow to Scotland’s economy,” she said.
“I am extremely disappointed by the sudden news of this commercial decision by ExxonMobil after failing to find a buyer.
“I have met with the business on a number of occasions and expressed my deep concern about the impact this announcement will have on the dedicated workforce, as well as the contractors and supply chain companies whose employment relies on the site.”
The Scottish Government is set to create a taskforce to look at what can be done to support workers.
Ms Forbes said the majority of powers, however, sat with the UK Government.
“UK ministers must consider what more they can do for the workers at the plant, and take urgent action to address the high cost of energy which is slowly crippling industry, to help support the sector and the livelihoods of those who depend on it,” she said.
Trade union GMB’s senior organiser Robert Deavy called for politicians to put together a “planned and measured” transition.
“This is more grim news for workers, their families and communities but exactly how much more bad news is needed before ministers protect jobs and our country’s energy security? How many dominoes have to fall?
“Our members do not need more politicians wringing their hands or making more speeches promising just transitions. There is nothing just about what is going on and there is no transition.
“We need politicians willing to finally stand up and demand an industrial strategy that protects the UK’s crucial oil and gas while actually delivering a planned and measured transition instead of the economic carnage unfolding day by day.”
Stephen Flynn, the SNP’s leader in Westminster, warned that oil and gas jobs are being “pushed off a cliff” in Scotland.
Mr Flynn urged ministers to intervene, saying the company had blamed UK Government policy for the announcement during energy questions.
“On this Government’s watch, Grangemouth has shut,” he said.
“Oil and gas jobs are being pushed off a cliff, and in the last 20 minutes, it’s been announced that 400 jobs are to be lost at the Mossmorran plant back home in Scotland.
“The company blame the UK Government’s policy environment.
“(The Government) stepped in to save jobs at the steelworks in Scunthorpe, are they going to intervene to save jobs in Scotland?”
Labour MP for Alloa and Grangemouth Brian Leishman said the closure was “more industrial vandalism being put upon Scotland”.
He said it would plunge communities into “chaos”.
“Why will the Government not take a future stake in what comes next at Grangemouth to give workers and communities prosperity and security?”
Industry Minister Chris McDonald said the Government had explored every avenue of reasonable support at Mossmorran, but shutting the plant is a commercial decision.