ExxonMobil to Close Scottish Plant, Warns of Broader EU Exit Over Policy and Costs

ExxonMobil is set to close its Fife Ethylene Plant in Scotland by February 2026, impacting approximately 400 jobs, while its CEO, Darren Woods, has simultaneously warned that the company may be forced to exit the wider European Union market. The decisions stem from what the energy giant describes as challenging economic and policy environments, coupled with high operating costs and new regulatory demands.

The Fife Ethylene Plant, located near Cowdenbeath, has been operational for 40 years. ExxonMobil cited "the UK’s current economic and policy environment combined with market conditions, high supply costs and plant efficiency" as reasons for the closure. The company stated that the facility required an estimated £1 billion investment to remain commercially viable, a sum deemed too great given the prevailing conditions.

The closure will directly affect 179 ExxonMobil employees and around 250 contractors. UK Industry Minister Chris McDonald acknowledged the decision as "extremely worrying news" but stated it was a commercial decision, despite government efforts to support the site. The Scottish government, led by Deputy First Minister Kate Forbes, expressed "extreme disappointment," calling it a "significant blow" to Scotland's economy.

Beyond the UK, ExxonMobil CEO Darren Woods has issued a stern warning regarding the European Union's proposed Corporate Sustainability Due Diligence Directive (CSDDD). Mr. Woods stated that the company might not be able to continue operations in the EU if the directive is not significantly loosened, describing its requirements as "technically unfeasible" and an "overreach." The directive mandates companies to implement climate transition plans aligned with the Paris Agreement and address human rights and environmental risks across their global supply chains, with potential fines for non-compliance.

"If we can't be a successful company in Europe, and more importantly, if they start to try to take their harmful legislation and enforce that all around the world where we do business, it becomes impossible to stay there," Woods told Reuters.

This sentiment is echoed by other major energy players, including QatarEnergy, whose CEO, Saad al-Kaabi, has also threatened to halt liquefied natural gas supplies to Europe over similar regulatory concerns. The broader implications highlight a growing tension between Europe's ambitious climate policies and the economic competitiveness and energy security concerns of major industrial operators.