Major Blow for Scottish Economy as ExxonMobil Confirms Plant Closure
ExxonMobil has delivered devastating news to its workforce, confirming the permanent closure of its Fife Ethylene Plant near Cowdenbeath by February next year. The decision puts approximately 450 positions at risk, comprising 200 direct employees and 250 contractors, in a significant blow to the local economy and Scotland's manufacturing sector.
Government Policy and Market Conditions Blamed
In a stark statement, the US oil giant attributed the closure decision to the UK's challenging economic and policy environment, combined with high supply costs and plant efficiency issues. Company representatives revealed they had tested the market for potential buyers but found no viable future for the 40-year-old facility under current conditions.
ExxonMobil didn't mince words in its criticism, accusing the government of creating policies that accelerate the exit of vital industries and domestic manufacturing capabilities from the UK. The announcement follows failed negotiations between the company and Westminster officials who had explored every reasonable avenue to support the site.
Political Fallout and Worker Anger
The closure has sparked strong reactions across the political spectrum. Scotland's Deputy First Minister Kate Forbes expressed extreme disappointment and promised to establish a Scottish government taskforce to address the situation. She emphasised that losing such high-value jobs represents a very significant blow to Scotland's economy.
Local Labour MP Melanie Ward voiced fury over the handling of the announcement, particularly regarding contract workers being locked out of the site and staff facing uncertainty about redundancy packages despite decades of service.
The UK government acknowledged the difficult situation, stating that Exxon faces significant global challenges and describing this as ultimately a commercial decision for the company. They highlighted support available through the Department for Work and Pensions rapid response service and PACE redundancy services.
ExxonMobil stated it regrets the impact on its loyal and valued workforce and committed to supporting employees through the challenging period while maintaining safe operations until production ceases early next year.
