Hundreds of jobs are at risk after global energy giant ExxonMobil announced plans to close its manufacturing plant in Fife.
The Fife Ethylene Plant (FEP) at Mossmorran – which produces the base material for plastics – is expected to shut in February next year, subject to a full employee consultation.
A total of 179 directly employed jobs will be at risk, along with 250 contractors, with the possibility of 50 staff transferring to the Fawley Petrochemical Complex almost 500 miles away in Hampshire.
In a statement, the firm said: “We considered various options to continue production and tested the market for a potential buyer, but 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.
“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.”
The company acknowledged the impact this will have on its workforce, contractors and local communities.
It added: “Our priorities are now to support our people through this challenging period, while ensuring continued safe operations through to end of production.”
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How has the UK government responded?
The UK government said it “stands ready” to support those affected via the Department for Work and Pensions’ rapid response service and the Scottish government’s Partnership Action for Continuing Employment (PACE) initiative.
A spokesperson added: “This is, of course, a commercial decision for the company to take.
“The UK government explored every reasonable avenue to support the site, but Exxon has had significant global challenges, and this move comes on the heels of closing another chemical plant in France.
“Our focus now must be on supporting the workforce in the months ahead.”
A senior UK government source said there had been “extensive” engagement between with the company ahead of the announcement.
Forbes ‘extremely disappointed’
Scotland’s Deputy First Minister Kate Forbes said she was “extremely disappointed by the sudden news” and described it as a “significant blow” to the nation’s economy.
The MSP added: “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.”
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The Scottish government will set up a taskforce to look at what it can do to support workers, but Ms Forbes said the majority of powers sit with the UK government on such an issue.
She said: “UK ministers must consider what more they can do for the workers at the plant, and take urgent action to address the high cost of energy which is slowly crippling industry, to help support the sector and the livelihoods of those who depend on it.”
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Calls for a ‘planned’ transition
Robert Deavy, a senior organiser for trade union GMB, which represents contractors on the site, called for politicians to put together a “planned and measured” transition.
He said: “This is more grim news for workers, their families and communities but exactly how much more bad news is needed before ministers protect jobs and our country’s energy security? How many dominoes have to fall?”
Earlier this year, the oil refinery at Grangemouth closed its doors after more than a century in operation, with operator Petroineos blaming soaring costs.
More than 400 jobs were lost at the site, leaving both the Scottish and UK governments scrambling to first protect the workforce and subsequently to secure other work.
Mr Deavy added: “Our members do not need more politicians wringing their hands or making more speeches promising just transitions. There is nothing just about what is going on and there is no transition.
“We need politicians willing to finally stand up and demand an industrial strategy that protects the UK’s crucial oil and gas while actually delivering a planned and measured transition instead of the economic carnage unfolding day by day.”
