Finance
Exxon to close Scottish chemicals plant in 2026 amid market uncertainty
Published by Global Banking and Finance Review
Posted on November 18, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 18, 2025
2 min readLast updated: January 20, 2026
Exxon Mobil plans to close its Fife ethylene plant in 2026, citing high costs and market challenges, impacting numerous jobs and the UK chemical sector.
(Reuters) -Exxon Mobil announced on Tuesday it would shut its Fife ethylene plant (FEP) in Scotland in February 2026, saying the site is no longer competitive because of high supply costs, weak market conditions and the UK's economic and policy environment.
European chemicals producers, the European Union's fourth-biggest exporting sector after machinery, automotive and pharmaceuticals, have come under pressure from soaring energy costs following Russia's invasion of Ukraine and aging infrastructure, deepening their reliance on imports of key feedstocks such as ethylene and propylene.
The closure will impact 179 Exxon employees and around 250 contractors, although 50 employees will be offered a transfer to the Fawley Petrochemical Complex, the U.S. oil major said in a statement.
Exxon added that it had assessed various options to continue production and tested the market for a potential buyer for the ethylene plant situated near the town of Cowdenbeath in Fife.
"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 company said.
The shutdown also comes against a backdrop of falling refining capacity in Europe as companies look to close or convert oil refining assets.
Grangemouth, Scotland's only oil refinery, ceased crude oil processing in April, while Britain's insolvent Lindsey refinery would shut down after failing to attract buyers, Energy Minister Michael Shanks said in July.
(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi Majumdar)
Ethylene is a colorless gas that is used as a building block in the production of various chemicals and plastics, including polyethylene, which is widely used in packaging.
Feedstocks are raw materials used to produce chemicals, fuels, and other products. In the chemical industry, common feedstocks include ethylene and propylene.
Market competitiveness refers to the ability of a company or industry to offer products or services that meet the demands of consumers while maintaining profitability.
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