ExxonMobil to close Mossmorran plastics plant with 400 jobs at risk

Latest updates

ExxonMobil is to close one of Europe’s largest and most modern ethylene plants in Scotland within months
The company had been in talks with the UK Government but did not secure what it needed for the facility’s future
More than 400 jobs are at risk the Fife Ethylene Plant in Cowdenbeath which has operated for 40 years
Staff were told at a meeting on Tuesday morning
Scotland’s first minister said it was a ‘body blow’ to Scotland’s economy
Kate Forbes said ExxonMobil had failed to find a buyer for the plant

ExxonMobil is to close its Mossmorran plastics plant in Scotland putting more than 400 jobs at risk.

The Fife Ethylene Plant (FEP) is one of Europe’s largest and most modern ethylene plants.

The global energy giant said 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”.

ExxonMobil said the plant will shut in February 2026 having operated for 40 years.

Scotland’s first minister said it was a “body blow” to Scotland’s economy.

Mossmorran consists of two neighbouring facilities, the Fife Natural Gas Liquids plant operated by Shell, and the Fife Ethylene Plant operated by ExxonMobil.

Workers were told on Tuesday morning that ExxonMobil had been in talks with the UK Government, but they did not get what they needed to secure the future of the facility.

There are around 180 ExxonMobil staff, 200 contractors, and around 50 other workers at Mossmorran who could be affected.

ExxonMobil's Mossmorran plant in Fife. — ExxonMobil’s Mossmorran plant in Fife. Getty Images

The closure of the plant, which converts ethane into ethylene – a key raw material for plastics used in packaging, medical equipment, car parts, and more, will be phased.

ExxonMobil said it had “considered various options” to continue production and had tested the market for a potential buyer.

“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,” a spokesperson for the firm said.

“We understand and regret the impact this will have on our loyal and valued workforce, contractors and local communities.”

In April, Unite the union warned of an “avalanche” of job losses at the site.

Altrad at Mossmorran announced at least 98 redundancies with the company claiming a downturn in work and cost savings being imposed by ExxonMobil.

Unite said further job losses were affecting other contractors, with Bilfinger issuing ten redundancy notices, and Kaefer cutting 55 jobs.

Deputy first minister Kate Forbes said she was “extremely disappointed” but that the “levers for an industrial intervention” lay with the UK Government.

“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,” she said.

“The Scottish Government will do all that we can to support the workers at this time.”

The Scottish Tories have slammed the proposed closure as “yet another hammer blow for the Scottish economy”.

“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,” MSP Murdo Fraser, shadow cabinet secretary for business and economy, said.

“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.”

What is Mossmorran?

The complex consists of two neighbouring plants: the Fife Natural Gas Liquids (Fife NGL) plant operated by Shell UK, and the Fife Ethylene Plant (FEP) operated by ExxonMobil Chemical Limited.

The Shell plant receives natural gas liquids from the S. Fergus gas terminal in Aberdeen, which is separated into propane, ethane, butane and natural gasoline.

The ethane is sent to the adjoining ExxonMobil plant and the other products are sent off-site to the adjacent Avanti Gas Terminal and to Braefoot Bay Marine Terminal for export.

The gas plant has previously come under fire for unplanned flaring, which has caused significant disruption to the local community.

Operators say it is occasionally necessary to operate the plant safely, with the burning flare acting like a safety valve when the plant is not in normal processing.

In October, the ExxonMobil plant at Mossmorran was fined after a noise that sounded like a “jet engine” blared for six days, prompting 900 complaints from residents.

The closure of the plant, however, comes less than a year after oil refining operations at Grangemouth in Falkirk ended.

Petroineos, which ran the refinery, notified staff by email in April that all oil refining work had ended and that the first group of redundant workers were leaving plant – with 200 to depart by the end of June.

Grangemouth operators stated that they could no longer compete with larger, newer refineries worldwide and that the cost of maintaining the ageing refinery was too steep.