Major Blow for Scottish Economy as ExxonMobil Confirms Plant Closure
ExxonMobil has announced the imminent closure of its Fife Ethylene Plant near Cowdenbeath, dealing a devastating blow to the local workforce and Scotland's manufacturing sector. The US oil giant confirmed the 40-year-old facility will cease operations by February next year, putting approximately 200 direct employees and 250 contractors out of work.
Government Policy and Market Conditions Blamed
In a stark statement, ExxonMobil attributed its decision to shut the chemical plant to the UK's challenging economic and policy environment, combined with high supply costs and plant efficiency issues. The company revealed it had tested the market for potential buyers but found no viable future for the site under current conditions.
ExxonMobil didn't mince words, directly accusing the UK government of creating policies that are accelerating the exit of vital industries, domestic manufacturing and the high-value jobs they provide. This criticism comes despite talks between the company and Westminster officials, which ultimately failed to secure a lifeline for the struggling facility.
Political Fallout and Worker Anger
The announcement has sparked significant political controversy and worker discontent. Scotland's Deputy First Minister Kate Forbes expressed extreme disappointment and promised to establish a Scottish government taskforce to address the situation. She described the closure as a very significant blow to Scotland's economy.
Local Labour MP Melanie Ward voiced fury over reports that contract workers were locked out of the site and that long-serving employees face uncertainty about their redundancy packages. The UK government responded that officials had explored every reasonable avenue to support the site but acknowledged Exxon faces significant global challenges.
The Department for Work and Pensions rapid response service and PACE redundancy service have been activated to support affected workers. This closure forms part of ExxonMobil's broader global restructuring, which includes cutting 2,000 roles worldwide, though no job losses are planned in the US.
