ExxonMobil has announced the closure of its Fife Ethylene Plant near Cowdenbeath, Scotland, by February next year, putting up to 450 jobs at risk. The US oil firm blamed the UK government's economic and policy environment, high supply costs, and plant efficiency issues for the decision.
Workers were informed on Tuesday that talks with the UK government failed to secure a lifeline for the 40-year-old facility. Exxon said it had tested the market for a buyer but concluded the site lacked a competitive future under current conditions.
Industry minister Chris McDonald told the House of Commons that an estimated £1 billion investment was needed to make the plant viable. He said the government had explored every reasonable avenue but the numbers did not add up for a sound business proposition.
McDonald added that Exxon had reassured him workers would be supported to find other jobs, including at the company's Fawley refinery in Southampton. The Scottish government expressed disappointment, with deputy first minister Kate Forbes announcing a taskforce to address the impact.
Labour MP Melanie Ward, representing Cowdenbeath and Kirkcaldy, criticised the handling of the announcement, saying contract workers were locked out of the site and staff were unaware of redundancy packages. Exxon said it regretted the impact and would prioritise supporting its workforce.
