UK government will not financially support Mossmorran

Hundreds of staff have been told their jobs are at risk at Exxon Mobil's plant in Fife as the petrochemical company prepares to close part of the site.

The Fife Ethylene Plant (FEP) in Mossmorran is to close in February, the company confirmed.

A spokesman for the global energy company said there was not a "competitive future" for the site because of the UK's current economic and policy environment combined with market conditions.

Deputy First Minister Kate Forbes said the Scottish government would support workers, and the Grangemouth investment taskforce would be expanded to also consider the future of the Mossmoran site.

Describing the closure as "devastating", local MP Melanie Ward said she would do all she could to support affected workers.

Exxon Mobil said 179 directly employed jobs will be at risk, along with 250 contractors.

Staff were told about the plans at a meeting on Tuesday morning, where details of financial packages and retraining and relocation support were discussed.

There is a possibility of 50 staff transferring to the Fawley Petrochemical Complex 480 miles (780km) away in Hampshire.

The site has produced ethylene for about 40 years through a process known as thermal or steam cracking.

Exxon Mobil said it had been seeking a buyer for several months and it would clean up and then demolish the site once production ends.

It plans to have a "full employee consultation" before the closure.

Shell, which processes natural gas liquids on the Mossmorran site, said it was unaffected by the closure.

Its operations at St Fergus in Aberdeenshire, which provides natural gas to the Exxon Mobil facility at Mossmorran, were also unaffected, it added.

The closure of FEP, which had been a "cornerstone" of chemical production in the UK, reflected the challenges of operating in a policy environment that was "accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide", an Exxon Mobil spokesperson said.

A statement from the company said: ''We understand and regret the impact this will have on our loyal and valued workforce, contractors and local communities.

"Our priorities are now to support our people through this challenging period, while ensuring continued safe operations through to end of production.''

Melanie Ward, who represents Cowdenbeath and Kirkcaldy for Labour, said the closure was "devastating".

"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.

She said there had been months of "attempts to engage with the company in good faith" but the company had "not been forthcoming about their intentions or about what government could do to save the plant and the jobs".

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

In the House of Commons, UK Energy Security Minister Michael Shanks said his government was "ready to provide whatever support that we can" to workers at Mossmorran.

The Rutherglen MP said the news from Fife was "deeply concerning" and added that the government had been in "regular contact" with Exxon Mobil, which he said had been facing "significant global challenges".

A UK government spokesperson said it was ready to support affected workers through the Department for Work and Pensions' rapid response service.

"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," a government statement said.

"Our focus now must be on supporting the workforce in the months ahead."

Industry body Offshore Energies UK said the closure was a sign of industrial decline in the UK.

Chief executive David Whitehouse said: "We are sleepwalking into full-scale de-industrialisation; this announcement comes on the heels of widespread job losses in our domestic oil and gas sector.

"But it does not have to be this way. We should be building modern industrial Britain on the shoulders of our proud industries.

Trade union Unite called on the company to withdraw the immediate threat of closure and to explore all options to safeguard jobs.

Bob MacGregor, industrial officer at the union, said: "Exxon Mobil is one of the richest companies in the world.

"It cannot be allowed to walk away and leave an industrial wasteland in Fife."

Robert Deavy, a senior organiser for GMB which represents contractors on the site, called for politicians to put together a "planned and measured" transition.

Contractors at the plant told BBC Scotland News the closure announcement came as a shock.

Ross Colquhoun, who works for Zenith, said it was "heartbreaking".

"We're contractors so we knew that our contract was coming to an end eventually, but I feel for all the Exxon guys who thought they had a jobs for life," he said.

"We've been sent home until next Wednesday and we'll just wait by the phone and see what happens."

Deputy First Minister Kate Forbes said she was "extremely disappointed" by the announcement of the plant closure.

She said it was essential to secure a long-term future for the site and the Scottish government would expand the Grangemouth investment taskforce to include Mossmoran as a potential location for new projects.

"I wish to provide my assurance to the workforce that the we will work with them and their representatives to explore all options to support them," she added.

She said the Scottish government would set up a task force to discuss what mitigating actions it can take, but urged the UK government to consider how it could support workers.

Murdo Fraser, Scottish Conservative spokesman for business, said the proposed closure would "devastate the local economy and the livelihoods of hundreds of skilled workers".

He added: "By imposing high-tax, low-growth policies and opposing our oil and gas sector, the Labour and SNP governments are wreaking havoc on Scotland's economy. Our industrial capacity is being hollowed out."

The oil refinery at Grangemouth closed its doors earlier this year after more than a century in operation, with operator Petroineos citing soaring costs.

More than 400 jobs were lost, leaving both the Scottish and UK governments working to protect the workforce and subsequently to secure other work.

A £200m funding package was announced in February to support a transition to green energy projects.

Scottish Green MSP Mark Ruskell said the closure at Mossmorran would "feel familiar".

"Exxon Mobil has reported eye-watering profits and now it is cutting and running and abandoning workers," he said.

"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."

This announcement is no real surprise when you consider the full context around the decision.

Mossmorran is one of Scotland's big consumers of energy and, as we know from our own household bills, the cost of energy is high.

US President Donald Trump has been warning that international operators like Exxon Mobil have been finding the UK one of the most expensive parts of the world in which to operate.

The closure will no doubt fuel the debate around the future of the North Sea since the plant takes its gas from there via pipelines through St Fergus in Aberdeenshire.

But analysts will point out that licensing more exploration would have no material impact on the cost of fossil fuel energy which is driven by the international commodities market.

After the closure of the refinery at Grangemouth in the spring, fresh questions will be asked about whether the "just" and orderly energy transition is actually being realised.

For those hundreds of workers who are affected at both sites, it certainly won't feel like it.