ExxonMobil has announced the closure of its ethylene manufacturing plant in Mossmorran, Fife, in February next year, citing a range of challenges that have made the site economically unviable. The decision follows the company’s assessment of various options to continue production, including testing the market for potential buyers, but ultimately, no buyer was found. Paul Greenwood, Chairman of ExxonMobil, pointed the finger at UK government policies, claiming they were “undermining” the business and contributing significantly to the closure.
In an interview on the BBC’s Today Programme, Greenwood explained that while the workforce at the Mossmorran site was exceptional, critical resources required for the plant’s success had been hindered by government policies. Specifically, he criticized policies that impacted the ethane supply from the North Sea, where production has declined due to windfall taxes and a ban on new production licenses. He also pointed to the high cost of operating in the UK, especially the CO2 taxes, which have escalated significantly. ExxonMobil paid £20 million in CO2 taxes last year, and that amount is expected to double in the next four to five years.
“The UK government’s policies have deliberately made it harder for us to succeed,” said Greenwood. “I need a cheap, abundant supply of ethane, and I do not have it. The North Sea is rapidly declining, and the ethane I need is becoming more expensive.”
Government Response and Worker Concerns
The closure of the Mossmorran plant will put 179 employees and 250 contractors out of work, a decision that has sparked disappointment among Scottish officials. Deputy First Minister Kate Forbes expressed her frustration with the closure and reiterated that the Scottish Government would explore “all options” to support the workers impacted by the decision. While Forbes acknowledged the market conditions and high energy prices contributing to ExxonMobil’s struggles, she also emphasized the need for a more competitive business environment, pointing to the role of UK government policies in making operations less viable.
“I’m extremely disappointed by this decision,” said Forbes. “We have been pushing ExxonMobil on the policies they’ve cited as reasons for closing the plant. These include fiscal and policy decisions that are making it harder for businesses to compete.”
Forbes noted that although ExxonMobil had been actively looking for a buyer for the site, the decision to shut down came surprisingly quickly after those efforts failed. She expressed concern over the loss of skilled workers, stating that Mossmorran’s workforce is crucial to any future industrial transitions in Scotland, especially in the context of a just transition toward more sustainable energy.
Future Prospects for the Site and Workforce
The Scottish Government’s priority is now to explore whether there is an alternative future for the Mossmorran site. Even if a potential buyer cannot be found, Forbes emphasized the importance of securing new economic opportunities for the site. “The workers at Mossmorran are highly skilled, and we cannot afford to lose them,” she said. “They are absolutely critical to the future of Scotland’s industrial landscape, and we must work to retain this site as a key employer.”
While the closure of the Mossmorran plant is an economic blow to Scotland, especially to the 429 workers directly impacted, the Scottish Government is determined to ensure that this setback doesn’t mean the loss of valuable industrial assets. The Government has pledged to engage with ExxonMobil, explore other options for the site, and ensure that affected workers are supported through this challenging transition.
