ExxonMobil to Close Scottish Ethylene Plant with 400 Job Losses
ExxonMobil will close its Fife Ethylene Plant in Scotland in February 2026 due to high supply costs, weak market conditions, and an unfavorable UK economic and policy environment. The 40-year-old plant has been key to the UK's chemical production but is no longer competitive. Closure will impact 179 employees and about 250 contractors, with limited transfer offers. The Scottish Government plans a taskforce to support affected workers.
ExxonMobil has announced the closure of its Fife Ethylene Plant (FEP) located near Cowdenbeath, Scotland, scheduled for February 2026. This decision is driven by multiple factors including elevated supply costs, declining market conditions in the European chemical industry, and a challenging economic and policy environment in the UK. The plant, operational for over 40 years, plays a significant role as a supplier of ethylene to European chemical markets and is considered a cornerstone of the UK’s chemical production sector. The closure reflects the difficulties faced by the UK chemical industry amidst high energy prices, particularly exacerbated by geopolitical tensions such as Russia's invasion of Ukraine, and aging infrastructure increasing reliance on imported feedstocks. The shutdown will result in a direct loss of 179 ExxonMobil jobs, impact approximately 250 contractors, and a small number of employees may be relocated to ExxonMobil’s Fawley Petrochemical Complex in England. The company has explored various options to keep the site operational, including seeking buyers, but found no competitive future. Scottish Deputy First Minister Kate Forbes has announced a government taskforce aimed at supporting displaced workers and has called for UK government intervention to address energy costs that threaten industrial viability in the region.
