The UK Government has defended its decision to intervene with a major support package for the Grangemouth chemical plant while declining to do the same for the Mossmorran facility, pointing to a 'stark contrast' in the approach of the two sites' management.
A Tale of Two Chemical Plants
Scottish Secretary Douglas Alexander made the comments on Wednesday, 17 December 2025, following the announcement of a £150 million support package to secure 500 jobs at the Grangemouth ethylene plant near Falkirk. The deal involves a £120 million commitment from the UK Government alongside a £30 million investment from the site's owner, Ineos.
This intervention stands in sharp relief to the government's stance on the Mossmorran plant in Fife. Last month, ExxonMobil revealed plans to shut its ethylene facility there in February, putting over 400 jobs at risk. The UK Government did not step in with a rescue package, a decision that has drawn criticism.
'Pathway to Profitability' Was Key
Explaining the differing approaches, Mr Alexander insisted the core issue was that ExxonMobil's management had not been able to demonstrate a viable 'pathway to profitability' for Mossmorran, unlike Ineos at Grangemouth.
'I would draw a pretty stark contrast in the dialogue and the discussions that we were able to have with Ineos at Grangemouth and that, frankly, we weren’t able to have with the Mossmorran leadership,' Alexander told BBC Radio Scotland.
He highlighted several critical differences:
- Investment History: Significant recent investment by Ineos at Grangemouth, contrasted with a lack of equivalent investment in the 40-year-old Mossmorran plant, which was originally built with a 20-year lifecycle.
- Corporate Strategy: ExxonMobil's broader move away from certain chemical operations, having closed facilities in France and Singapore and reducing North Sea production.
- Financial Performance: The Mossmorran plant had reportedly been losing money every month for five years.
'When we sat with the Mossmorran management, they weren’t able to give us a pathway to profitability,' Alexander stated. 'In contrast, that’s exactly what the Ineos management were able to do.'
Political Reactions and Criticisms
While welcoming the jobs saved at Grangemouth, Scottish Housing Secretary Mairi McAllan was critical of the UK Government's overall record. She suggested the intervention may be linked to Labour's political challenges in Scotland rather than a consistent industrial strategy.
'It perhaps feels a little bit too little too late,' Ms McAllan said, questioning why the government had not acted earlier when the adjacent Grangemouth oil refinery stopped processing crude in April. She contrasted the action with the rapid move to save UK Steel in Scunthorpe, asking: 'Where were they when it came to Mossmorran?'
ExxonMobil has previously attributed part of the reason for Mossmorran's closure to government policies, including taxes on emissions and restrictions on new North Sea exploration.
Concluding, Douglas Alexander expressed regret over the Mossmorran outcome but affirmed confidence in Grangemouth's future: 'We’re recognising, critically, chemical production has a big future on the Grangemouth site.' The deal, he argued, was the result of hard negotiation with a company that had a clear, investable plan for its workforce and facility.
