ExxonMobil is considering the sale of its European chemical plants in the UK and Belgium, according to a report by the Financial Times. The decision comes as the sector faces significant challenges due to US tariffs and increasing competition from Chinese imports. The energy producer has reportedly held early-stage discussions with advisers, exploring possible sales that could fetch up to $1 billion.
The European chemicals industry is under renewed pressure, with US tariffs disrupting global trade and delaying orders. This has intensified competition from cheaper Asian imports, threatening the sector’s recovery from the 2022 energy crisis. ExxonMobil’s potential sale of its European assets is a notable development in this context.
ExxonMobil owns an ethylene plant in Fife, Scotland, and several production sites in Belgium. The company has also considered shutting down these facilities, according to the report. However, there is no guarantee that a deal will materialize, and ExxonMobil may opt to retain the assets.
Other major players in the industry, such as LyondellBasell and Sabic, are also reducing their European presence. LyondellBasell sold certain olefin and polyolefin assets earlier this year, reflecting the sector’s broader trend. ExxonMobil’s decision to explore the sale of its European chemical plants is a significant indicator of the challenges facing the industry.
In recent months, ExxonMobil has been actively reviewing its portfolio, including the potential divestment of its majority-owned French subsidiary, Esso. The company entered into exclusive negotiations with the French unit of Canadian energy group North Atlantic in May. As the energy landscape continues to evolve, ExxonMobil’s strategic decisions will be closely watched by industry observers.
The potential sale of ExxonMobil’s European chemical plants underscores the complexities and challenges facing the global chemicals industry. As trade tensions and competitive pressures persist, companies are being forced to reevaluate their portfolios and strategies. The outcome of ExxonMobil’s deliberations will have significant implications for the sector, and its decision will be closely monitored in the coming months.
