Exxon joins race for ethylene plant closures with Fife plant in Scotland

According to media reports, ExxonMobil plans to shut its Fife ethylene plant in Mossmoran, Scotland in February 2026, saying the facility - which is widely reported to have an ethylene capacity of around 800,000 tons/year - can no longer compete due to high operating costs, weak demand and what it describes as an unfavourable UK policy environment.

The company said it explored options to keep the site running, including searching for a buyer, but none proved viable. The closure will affect 179 Exxon employees and about 250 contractors, though around 50 staff will be offered positions at the company’s Fawley complex in England.

The Mossmorran complex consists of two neighbouring plants near Edinburg. The Fife Ethylene Plant (FEP) operated by ExxonMobil converts the ethane, provided by the Natural Gas Liquids (NGL) Plant operated by Shell, into ethylene. They both link by pipeline to a marine terminal at Braefoot Bay, where products are loaded onto ships. Back in March 2025, Shell announced plans to optimize its chemicals portfolio by selectively closing or upgrading assets in Europe in order to improve returns and reduce capital employed.

Crisis continues to deepen in Europe

The decision highlights the wider struggles facing Europe’s chemicals sector, which has been squeezed by elevated energy prices since Russia’s invasion of Ukraine and has become increasingly dependent on imported feedstocks. European producers, many of them operating ageing plants, have been forced to review or scale back operations as margins shrink.

Exxon already closed Granvenchon plants

ExxonMobil had already taken significant steps to scale back its European operations before the Fife announcement. At the end of 2024, the company closed its major units at the Gravenchon complex in France, including the ethylene cracker and the associated PP, LLDPE and propylene facilities with a combined capacity of more than 1.4 million tons per year. These shutdowns marked the full withdrawal of Gravenchon’s PP/PE operations and signaled the growing pressure on the region’s petrochemical assets.

A loud red flag is already flying for the UK

The warning signs for the UK’s chemical sector have been flashing for months. Industry leaders have repeatedly stressed that high energy bills, rising carbon taxes and mounting regulatory pressures are eroding the country’s industrial base. The Chemical Industries Association (CIA) recently cautioned that these cost burdens are driving production offshore and making it “extremely tough” for manufacturers to stay competitive.

Several energy-intensive facilities have already shut down this year, including Scotland’s Grangemouth refinery, which stopped crude processing in April, and the UK’s Lindsey refinery, which is preparing to close after failing to find a buyer. Exxon’s decision to shut the Fife ethylene plant now adds to this pattern, underscoring how a challenging policy and cost environment is accelerating the decline of the UK’s chemicals and refining capacity.

Ineos Grangemount is also under risk

Ineos’ large petrochemical complex at Grangemouth faces similar pressures and may become the next major casualty. The site’s olefins and polymers units, which form the backbone of Scotland’s chemical production, have been operating at a loss for years as soaring gas prices and steep carbon costs outstrip revenues.

According to plant management, Grangemouth pays around €100 million more per year for energy than a comparable US facility, plus up to €30 million in carbon taxes, leaving the site heavily exposed in a global market where competitors in China and the US enjoy far lower industrial energy costs. Unless the UK can narrow this gap, Ineos warns the plant may be forced to close within the next few years, putting around 900 direct jobs and thousands more in the supply chain at risk.

A snapshot of Europe’s growing structural change in the chemical industry

Here is a quick review of how the crisis first unfolded and why industry giants have been pulling the plug on long-standing operations, and what awaits the industry as Europe has entered a period of a structural reset, and of course a transitional pain.