ExxonMobil has blamed “current economic policy” for its planned closure of the Fife Ethylene Plant, prompting calls for a change of direction on energy strategy.
The plant manufactures the base material for plastics and 180 of the 400 workers affected are directly employed by the company.
Government critics said it was another warning signal to the Labour government that the transition to green energy jobs was not moving quickly enough, combined with a lack of support for the oil & gas sector.
In a statement, ExxonMobil said: “We plan to shut down our Fife Ethylene Plant (FEP) in February 2026, subject to a full employee consultation.
“We considered various options to continue production and tested the market for a potential buyer, but the UK’s current economic and policy environment combined with market conditions, high supply costs and plant efficiency do not create a competitive future for the site.
“FEP has been a cornerstone of chemical production in the UK for 40 years, and its closure reflects the challenges of operating in a policy environment that is accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide.
“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.”
Scotland’s Deputy First Minister Kate Forbes said: “The news of the expected closure of the Fife Ethelyne Plant and the loss of such high-value jobs is a very significant blow to Scotland’s economy.
“I am extremely disappointed by the sudden news of this commercial decision by ExxonMobil after failing to find a buyer.
“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.”
The Scottish Government will set up a taskforce to look at what it can do to support workers, but Ms Forbes said the majority of powers sit with the UK Government on such an issue.
“UK ministers must consider what more they can do for the workers at the plant, and take urgent action to address the high cost of energy which is slowly crippling industry, to help support the sector and the livelihoods of those who depend on it,” she said.
In the Commons SNP Westminster leader Stephen Flynn reminded energy minister Chris McDonald that the Labour government had already overseen the closure of the Grangemouth oil refinery which it has promised to protect along with a similar number of workers.
“The company [ExxonbMobil] blames the UK Government’s policy environment,” said Mr Flynn.
“They [the Labour government] stepped in to save jobs at the steelworks in Scunthorpe. Are they going to intervene to save jobs in Scotland?”
Mr McDonald replied: “Of course my thoughts and the thoughts of the government are very much with the workers and their families at what is, I know from personal experience, an extremely difficult time.
“We have to recognise that this was a commercial decision taken by the company and while we explored every reasonable avenue of support, the firm does face significant global challenges.
“The government stands ready to provide through the DWP Rapid Response Service. I and other ministers will be very happy to meet with the honourable member to discuss what more we can do.”
Robert Deavy, senior organiser at GMB Scotland, said ministers can no longer ignore the “economic carnage” being inflicted by a rushed rundown of the offshore sector, supply chains and related industries.
He said: “This is more grim news for workers, their families and communities but exactly how much more bad news is needed before ministers protect jobs and our country’s energy security? How many dominoes have to fall?
“Our members do not need more politicians wringing their hands or making more speeches promising just transitions. There is nothing just about what is going on and there is no transition.”
Scottish Conservatives Business and Economy spokesman Murdo Fraser said: “The proposed closure of Mossmorran is yet another hammer blow for the Scottish economy that will cost hundreds of jobs at the plant.
“It will also affect many other suppliers and contractors and, in the wake of the redundancies at Grangemouth, have a devastating impact on the local community.
“Scotland’s industrial capacity is being hollowed out. The high-tax, low-growth policies of both Labour and the SNP – and the hostile environment created for the oil and gas sector – are having a catastrophic impact on Scotland and both governments must now take urgent action to limit the damage this decision will undoubtedly cause.”
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