Petrochemical giant ExxonMobil has announced plans to close its Mossmorran ethylene plant in Fife, Scotland, with its chairman directly blaming deliberate UK Government policies for undermining the business.
Policy Decisions Forced Closure
Paul Greenwood, chairman of ExxonMobil, revealed the company's decision just one day after confirming the plant would cease operations in February next year. The closure follows extensive efforts to continue production and find a potential buyer for the facility.
Greenwood identified four crucial elements for success in the petrochemical sector, stating he only had one - a skilled workforce - firmly in place. Two key components were missing due to government policy, specifically citing issues with ethane supply and operational costs.
Specific Policy Grievances
Speaking on BBC's Today programme, Greenwood explained that windfall taxes and bans on production licences have led to declining North Sea ethane supplies, creating increasingly high prices for this essential raw material.
The chairman also highlighted substantial financial burdens from CO2 taxes, revealing the company paid £20 million last year with expectations this would double within four to five years. He emphasised that international competitors don't face these additional costs, putting UK operations at a significant disadvantage.
Political Reactions and Worker Support
Scotland's Deputy First Minister Kate Forbes expressed extreme disappointment at the decision, noting she was surprised by how quickly discussions moved from marketing the plant to announcing closure. The Scottish Government has committed to exploring all options to support the 179 ExxonMobil staff and 250 contractors affected.
However, UK Industry Minister Chris McDonald indicated the government wouldn't intervene to keep the site open, stating past interventions only occurred where there was a fundamentally sound business proposition.
Forbes emphasised the importance of retaining the highly skilled workforce for Scotland's just transition and pledged to investigate alternative futures for the site while supporting workers during this troubling period.
