Exxon Mobil announced on Tuesday it will close its Fife ethylene plant (FEP) in February 2026, saying the site is no longer competitive because of high supply costs, weak market conditions and the UK’s economic and policy environment, Reuters reported.

The closure will impact 179 Exxon employees and around 250 contractors, although 50 employees will be offered a transfer to the Fawley Petrochemical Complex in Hampshire on the south coast of England, Exxon Mobil said in a statement.

Exxon said it assessed various options to continue production and tested the market for a potential buyer for the ethylene plant near Cowdenbeath, Reuters reported.

“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 said.