ExxonMobil is to close a chemicals plant in Scotland that employs hundreds of workers within months, blaming the decision on the UK government’s “economic and policy environment”.
Workers at Fife Ethylene Plant were told on Tuesday that the oil company would shut the 40-year-old facility near Cowdenbeath by February next year owing to the difficult policy and market conditions in the UK.
About 200 workers and 250 contractors were told that talks between the company and Westminster had failed to secure a lifeline for the plant because it lacked a “competitive future”.
In a statement, Exxon said it had “tested the market” for a potential buyer, but said the UK’s “current economic and policy environment combined with market conditions, high supply costs and plant efficiency” meant it had been unable to secure the site’s future.
The company also accused the government of creating a policy environment that was “accelerating the exit of vital industries, domestic manufacturing and the high-value jobs they provide”.
The UK government said officials had “explored every reasonable avenue to support the site” but that Exxon faced “significant global challenges”.
A spokesperson said: “We know this will be an incredibly difficult time for workers and their families, and the UK government stands ready to support through the Department for Work and Pensions rapid response service and their involvement in PACE [the redundancy service Partnership Action for Continuing Employment].”
“This is, of course, a commercial decision for the company to take,” the spokesperson added.
The decision has provoked anger within the Scottish government. The deputy first minister, Kate Forbes, said she was “extremely disappointed” and promised to establish a Scottish government taskforce.
“The news of the expected closure of the Fife Ethylene Plant and the loss of such high-value jobs is a very significant blow to Scotland’s economy,” Forbes said.
“I have met with the business on a number of occasions and expressed my deep concern about the impact this announcement will have on the dedicated workforce, as well as the contractors and supply chain companies whose employment relies on the site,” she added.
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Melanie Ward, Labour’s MP for Cowdenbeath and Kirkcaldy, said: “I’m furious that contract workers appear to have been locked out of the site this morning.
“News reaching me suggests that Exxon staff, many of whom have decades of service, have been told they will lose their jobs but have no idea of the redundancy package they will receive. Constituents who are in need of support should contact my office and we will do all we can to assist.”
Exxon said in a statement: “We understand and regret the impact this will have on our loyal and valued workforce, contractors and local communities. Our priorities are now to support our people through this challenging period, while ensuring continued safe operations through to end of production.”
The closure emerged months after Exxon set out plans for a global restructuring of its business, including the loss of 2,000 workers, particularly in Canada and across the EU.
Exxon said in February that about 1,200 roles would be cut in Norway and the EU by the end of 2027, but there would be no planned job cuts in the US.
