A newly formed taskforce convened in Fife to address the impending closure of the Fife Ethylene Plant at Mossmorran, which is set to shutter next month. The decision by owner ExxonMobil has put more than 400 jobs at risk, as the company cited economic unviability and an inability to sell the facility as reasons for the closure.
The Scottish government established the taskforce, which is led by Fife Council, to assess the needs of the workforce and the surrounding community. As part of this initiative, the government has allocated £9 million over three years to support affected employees and provide resources for local communities impacted by the plant’s closure.
Government Officials Address Workforce Concerns
Ahead of the meeting, Deputy First Minister Kate Forbes emphasized the urgency of the situation, stating, “This is a worrying time for the workforce at Mossmorran and they rightly expect urgent action.” She added that she had met with worker representatives earlier in the month to reassure them of the government’s commitment to supporting both them and their communities.
The meeting, which was attended by Business Minister Richard Lochhead, aimed to foster collaboration between the Scottish government, the UK government, trade unions, and local stakeholders. Forbes noted that the event was an opportunity to devise a strategy to assist those affected by ExxonMobil’s decision. She also highlighted the ongoing Partnership Action for Continuing Employment initiative, which is designed to offer skills and employability support for the workforce.
In a related development, Scottish Secretary Douglas Alexander stated that the UK government would not intervene to prevent the plant’s closure but pledged to provide support for the workers.
Financial Challenges and Future Prospects
The Fife Ethylene Plant reportedly incurred losses of £1 million per week, leading to its closure, according to Prime Minister Sir Keir Starmer. ExxonMobil’s chairman, Paul Greenwood, attributed part of the decision to UK government policies, including the refusal to issue new licenses for North Sea oil and gas exploration, which he claimed contributed to increased prices for ethylene. Additionally, he pointed to rising operating costs due to windfall and emissions taxes.
In response, a spokesperson for the UK government remarked that the taskforce meeting is “just the start of a process to support the Mossmorran workers and find a viable future for the site.” The spokesperson emphasized ongoing collaboration with Fife Council and the Scottish government to explore future options for the location.
The UK government has also taken steps to assist the workforce by ensuring they have first preference for new positions at the Grangemouth site, which is receiving significant investment. Discussions with other major employers in Fife are also underway to create new job opportunities.
The spokesperson further noted that engagements with the UK government’s Office for Investment have already generated interest from potential buyers for the Mossmorran site, highlighting a commitment to securing a successful future for both the site and its dedicated workforce.
