Europe's Plastics Supply Chain Got Tighter

The Fife Ethylene Plant at Mossmorran produces the base material for plastics and puts 179 directly employed jobs at risk, along with 250 contractors. ExxonMobil cited the UK's current economic and policy environment combined with market conditions, high supply costs and plant efficiency as reasons why the site lacks a competitive future. The Prime Minister claimed the plant was losing £1 million per week, with ExxonMobil stating it would need nearly £1 billion to make it profitable.

Ethylene from the site feeds into plastics, medical equipment and car parts. More than 60% of ethylene globally is used to create polyethylene for packaging, containers, and films for consumers and industries. The plant has been operational for 40 years and is one of Europe's largest and most modern ethylene facilities.

For UK manufacturers downstream from Mossmorran, this closure forces immediate sourcing decisions. European ethylene supply chains already face pressure from energy costs that soared following Russia's invasion of Ukraine. Companies relying on UK-produced ethylene now face longer supply routes, higher transportation costs, and increased exposure to continental European pricing dynamics.

For non-UK European manufacturers, Mossmorran's closure tightens regional capacity at precisely the wrong time. US ethane currently supplies 10% of European ethylene production, making European producers increasingly dependent on transatlantic shipments. When domestic production capacity shrinks, leverage shifts to fewer suppliers who can dictate terms.

The broader pattern reveals how policy environments drive industrial exodus. ExxonMobil's move comes on the heels of closing another chemical plant in France. When operating costs, regulatory burdens, and energy prices make plants unprofitable, companies exit. Their competitors inherit tighter markets but don't inherit the capacity.

This isn't about one plant in Scotland. It's about what happens when decades-old manufacturing infrastructure becomes economically unviable faster than replacement capacity can be built. Automotive, medical device, and packaging companies built supply chains assuming ethylene production would remain distributed across multiple sites and countries. Those assumptions are expiring one closure at a time.

The companies facing the most immediate pressure are mid-tier plastics manufacturers without the scale to secure long-term offtake agreements at favorable rates. When supply concentrates, smaller buyers lose negotiating power. When alternative sources sit 500 miles away instead of 50, logistics costs compound. When plants that ran for 40 years shut in months, there's no time for graceful transitions.

In a world of black swans and cascading disruptions, this is what resilience in action looks like.