Large ethylene plant, permanently shut down!

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The wave of shutdowns in European petrochemical plants continues. According to foreign media reports, ExxonMobil has once again announced the closure of an ethylene plant in Europe, which will affect more than 400 jobs. “Given the current economic and policy environment in the UK, along with market conditions, high supply costs, and the operational efficiency of the factory, it is no longer able to maintain a competitive advantage in future market competition. ”ExxonMobil confirmed on November 18 that it plans to permanently shut down its steam cracking unit in Moss Landing, UK, in February 2026. According to S&P Global Commodity Insights, ExxonMobil operates a steam cracking unit with an annual capacity of 830,000 tons in Moss Landing, UK. The plant is located adjacent to Shell’s natural gas and liquid feedstock facilities, which supply it with ethane as a raw material; the two parties share the output of the plant in a 50/50 ratio. It is reported that this closure will affect 179 directly employed employees as well as around 250 contractors ； At the same time, 6 four-year apprenticeship programs will also end ahead of schedule. This is not the first time ExxonMobil has closed an ethylene plant in Europe. In April 2024, ExxonMobil announced the closure of its 425,000 tons per year pyrolysis unit located in Gravelines, France, along with the related derivative production units and logistics facilities. Currently, Europe’s petrochemical industry is undergoing an unprecedented wave of capacity optimization and asset divestitures. Due to the ongoing weak market performance with no signs of improvement in the short term, 7 cracking units have been announced for permanent closure since April 2024 (excluding Moss Landing), with a combined ethylene production capacity of around 4.5 million tons per year; these units can also produce 2.3 million tons of propylene and 430,000 tons of butadiene. But, this is not the end. Based on the information released by various major companies so far, Europe will continue to shut down cracking units on a large scale or prepare to sell related assets.