Anger over jobs risk as Exxon Mobil prepares to shut part of Scottish site

Hundreds of Scottish jobs are at risk as fuel giant ExxonMobil  prepares to close part of its Fife plant in a “significant blow” to the country’s economy.

The US multinational will shutter its Fife Ethylene Plant (FEP) in February – one of the biggest and most modern of its kind in Europe.

Workers were notified today that talks between the company and the UK Government had failed to secure the plant’s continuation.

A spokesman said the site at Mossmorran, near Cowdenbeath, lacked a “competitive future” due to a combination of the economic and policy landscape of the UK and “ market conditions, high supply costs and plant efficiency”.

The company plans to clean up and demolish the plant when production ceases.

Ethlyene for the plastics industry has been produced there for around four decades and a staff consultation will take place.

Shell has said it is unaffected by the closure, despite processing natural gas liquids at Mossmorran, with its operations at St Fergus, Aberdeenshire, also expected to go without change. That site provides natural gas to Exxon Mobil at Mossmorran.

Responding to the news, Deputy First Minister Kate Forbes said she was “extremely disappointed” and a Scottish Government task force will be established.

She said: “The news of the expected closure of the Fife Ethelyne Plant and the loss of such high-value jobs is a very significant blow to Scotland's economy.

“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.”

Labour MP Melanie Ward, who represents Cowdenbeath and Kirkcaldy, expressed anger at the news, saying: “I'm furious that contract workers appear to have been locked out of the site this morning.

“News reaching me suggests that Exxon staff, many of whom have decades of service, have been told they will lose their jobs but have no idea of the redundancy package they will receive.”

She added: “Constituents who are in need of support should contact my office and we will do all we can to assist.”

ExxonMobil said: “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.

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

Scottish Greens MSP Mark Ruskell published plans for a pivot to green jobs at Mossmorran three years ago. He said: “ExxonMobil has reported eye-watering profits and now it is cutting and running and abandoning workers.

“This is exactly what happens when you leave Scotland’s green industrial future in the hands of multi-millionaire owners of fossil fuel companies rather than bringing workers and trade unions to the table. 

“The Scottish Greens have long called for a worker-led Just Transition Plan for Mossmorran -this is exactly why. The Scottish Government promised to come up with a plan more than a year ago but have failed to deliver it.

“Ministers must use today's statement to announce their plans for the site and how they will support workers and their families at this incredibly difficult time. The UK Government must also be willing to step-in and do everything it can to ensure that we are keeping jobs and skills in the community.

“The Mossmorran site employs some of the most skilled workers in our country and supports many more. It can have a sustainable and prosperous future in the green economy, but only if there is a clear and deliverable plan in place that centres the workers and unions and looks to the future.

“Workers and their families deserve security and stability and not be abandoned like what happened at Grangemouth.”