The UK government has stated it will not provide financial assistance to maintain operations at the Exxon Mobil plant in Mossmorran.
Speaking in the House of Commons on Tuesday evening, Business Minister Chris McDonald indicated that there was no viable business plan to accompany the requested investment.
He reported that ExxonMobil’s chairman, Paul Greenwood, conveyed to him that the facility was inefficient and would necessitate nearly £1bn in expenditure to achieve profitability.
Hundreds of employees have been informed that their positions are at risk as the petrochemical corporation prepares to close a portion of the site.
The Fife Ethylene Plant (FEP) in Mossmorran is slated to close in February, the company confirmed earlier in the day.
A spokesperson for the global energy company stated that a “competitive future” for the site was not viable given the UK’s current economic and policy environment, coupled with prevailing market conditions.
Deputy First Minister Kate Forbes affirmed that the Scottish government would provide support to affected workers, and that the Grangemouth investment taskforce would be expanded to encompass considerations for the future of the Mossmorran site.
Exxon Mobil conveyed that 179 directly employed positions, as well as 250 contractor roles, will be at risk.
Staff were briefed on the plans during a meeting held Tuesday morning, where details pertaining to financial packages, as well as retraining and relocation support, were discussed.
A potential exists for 50 employees to transfer to the Fawley Petrochemical Complex, situated 480 miles (780km) away in Hampshire.
The site has produced ethylene for approximately 40 years via a process known as thermal or steam cracking.
Exxon Mobil stated that it had been actively seeking a buyer for several months and that it will undertake site cleanup and subsequent demolition following the cessation of production.
The company plans to conduct a “full employee consultation” prior to the closure.
Shell, which processes natural gas liquids on the Mossmorran site, has indicated that its operations remain unaffected by the closure.
The company further noted that its operations at St Fergus in Aberdeenshire, which supplies natural gas to the Exxon Mobil facility at Mossmorran, are also unaffected.
The closure of FEP, which had been a “cornerstone” of chemical production in the UK, reflects the challenges of operating in a policy environment that was “accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide,” according to an Exxon Mobil spokesperson.
In a statement, the company conveyed: “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.”
Industry body Offshore Energies UK characterized the closure as indicative of industrial decline within the UK.
Chief executive David Whitehouse stated: “We are sleepwalking into full-scale de-industrialisation; this announcement comes on the heels of widespread job losses in our domestic oil and gas sector.”
“However, this trajectory is not inevitable. We should be building modern industrial Britain upon the foundations of our established industries.”
Trade union Unite has called upon the company to retract the immediate threat of closure and to explore all available options to safeguard jobs.
Bob MacGregor, industrial officer at the union, remarked: “Exxon Mobil is among the wealthiest companies globally.”
“It cannot be permitted to simply abandon the site and leave an industrial wasteland in Fife.”
Robert Deavy, a senior organiser for GMB, which represents contractors at the site, urged politicians to formulate a “planned and measured” transition.
Contractors at the plant informed BBC Scotland News that the closure announcement was unexpected.
Ross Colquhoun, an employee of Zenith, described the situation as “heartbreaking.”
“As contractors, we were aware that our contract would eventually conclude, but I feel for all the Exxon employees who believed they had secure, long-term employment,” he stated.
“We have been instructed to remain at home until next Wednesday, and we will await further updates.”
Murdo Fraser, Scottish Conservative spokesman for business, asserted that the proposed closure would “devastate the local economy and the livelihoods of hundreds of skilled workers.”
He added: “By enacting high-tax, low-growth policies and opposing our oil and gas sector, the Labour and SNP governments are wreaking havoc on Scotland’s economy. Our industrial capacity is being hollowed out.”
Scottish Greens MSP Mark Ruskell commented that the closure at Mossmorran would “feel familiar.”
“Exxon Mobil has reported substantial profits and is now cutting and running, abandoning its workforce,” he stated.
“This is precisely the outcome when Scotland’s green industrial future is entrusted to the multi-millionaire owners of fossil fuel companies rather than engaging workers and trade unions in the process.”
The news follows months after the closure of the oil refinery at Grangemouth, which had operated for over a century, with operator Petroineos citing escalating costs.
More than 400 jobs were lost, prompting both the Scottish and UK governments to work to protect the workforce and, subsequently, to facilitate alternative employment opportunities.
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