UK government will not give money to support Mossmorran plant
The UK government has said it will not give financial help to keep the Exxon Mobil plant in Mossmorran open.
Business Minister Chris McDonald told the House of Commons on Tuesday evening that there was no strong or realistic business plan to justify investment.
He said ExxonMobil’s chairman, Paul Greenwood, explained that the plant was old, inefficient, and would need almost £1 billion to make it profitable again.
Hundreds of workers have been told their jobs are at risk as the company prepares to close part of the site.
Earlier in the day, the company confirmed that the Fife Ethylene Plant (FEP) in Mossmorran will close in February.
A company spokesman said the site does not have a “competitive future” because of the UK’s current economy, policies, and global market conditions.
Scottish Deputy First Minister Kate Forbes said the Scottish government will support the workers. The Grangemouth investment taskforce will also expand its work to look at the future of the Mossmorran site.
Exxon Mobil said 179 employees could lose their jobs, along with 250 contractors.
Workers were told about the closure plans on Tuesday morning. They were also informed about financial support, retraining options, and help with moving to other places.
Around 50 employees may be able to move to the Fawley Petrochemical Complex in Hampshire, which is 480 miles (780km) away.
The site has produced ethylene for about 40 years using a process called thermal or steam cracking.
Exxon Mobil said it had been trying to find a buyer for several months. After production stops, the company will clean up and then demolish the site.
Before closing, the company will have a full consultation with all employees.
Shell, which processes natural gas liquids at the Mossmorran site, said it will not be affected by the closure. Its operations at St Fergus in Aberdeenshire, which supply gas to Mossmorran, will also continue as normal.
An Exxon Mobil spokesperson said the closure of FEP — once a key chemical production site in the UK — shows how difficult it has become to operate in a policy environment that is pushing important industries and high-value jobs out of the country.
The company said: “We understand and regret the impact this will have on our loyal and valued workforce, contractors, and local communities. Our priorities now are to support our people during this difficult time and ensure safe operations until production ends.”
Industry group Offshore Energies UK said the closure is another sign that the UK’s industrial sector is declining.
Chief executive David Whitehouse said: “We are sleepwalking into full-scale de-industrialisation. This comes right after many job losses in the UK’s oil and gas sector. But it does not have to be this way — we should be building a modern industrial Britain based on our strong industries.”
The trade union Unite asked the company to remove the immediate threat of closing the plant and to look at every possible option to protect jobs.
Bob MacGregor, an industrial officer at Unite, said: “Exxon Mobil is one of the richest companies in the world. It should not be allowed to leave and turn Fife into an industrial wasteland.”
Robert Deavy, a senior organiser for the GMB union, which represents contractors at the site, said politicians need to create a “planned and careful” transition.
Contractors at the plant told BBC Scotland News that the closure announcement was a big shock.
Ross Colquhoun, who works for Zenith, said it was “heartbreaking.”
“We are contractors, so we always knew our contract would end one day, but I feel bad for all the Exxon workers who thought they had jobs for life,” he said.
“We’ve been sent home until next Wednesday, and now we just wait for phone calls to see what happens next.”
Murdo Fraser, the Scottish Conservative business spokesman, said the planned closure would “destroy the local economy and the livelihoods of hundreds of skilled workers.”
He added: “Because of high taxes and policies that slow growth, and by opposing the oil and gas sector, the Labour and SNP governments are damaging Scotland’s economy. Our industrial base is being weakened.”
Scottish Greens MSP Mark Ruskell said the closure at Mossmorran would “feel familiar.”
He said: “Exxon Mobil has made huge profits, and now it is leaving and abandoning workers. This is what happens when Scotland’s green future is left in the hands of wealthy fossil fuel company owners instead of involving workers and trade unions.”
This news comes just months after the Grangemouth oil refinery closed after more than 100 years. The operator, Petroineos, said the costs were too high. More than 400 jobs were lost, and both the Scottish and UK governments are now working to support the workers and find new opportunities.
Published: 19th November 2025
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