ExxonMobil is considering the sale of its chemical plants in the UK and Belgium, according to a report by the Financial Times. The energy producer has reportedly held early-stage discussions with advisers regarding the potential sale, which could generate up to $1 billion. The company’s decision comes as the European chemicals industry faces significant challenges due to US tariffs and increased competition from Chinese imports.
The US-based energy giant owns an ethylene plant in Fife, Scotland, and several production sites in Belgium. In recent weeks, the company has explored options for the sale of these assets, although it has also considered shutting them down. ExxonMobil has declined to comment on the matter, stating that it does not “comment on rumours or speculation”.
The European chemicals sector is under pressure due to the impact of US tariffs on global trade, which has led to delayed orders and intensified competition from cheaper Asian imports. This has threatened the recovery of the sector, which is still reeling from the 2022 energy crisis. Other major players, such as LyondellBasell and Sabic, are also reducing their European presence, with LyondellBasell selling certain assets earlier this year.
In May, ExxonMobil entered into exclusive negotiations with the French unit of Canadian energy group North Atlantic to divest its majority-owned French subsidiary Esso. The potential sale of its UK and Belgian chemical plants is part of the company’s broader strategy to adapt to changing market conditions. While there is no guarantee that a deal will materialize, the company’s exploration of sale options highlights the significant challenges facing the European chemicals industry.
The potential sale of ExxonMobil’s chemical plants in the UK and Belgium underscores the ongoing pressures facing the European chemicals sector. As the industry continues to navigate the impact of US tariffs and competition from Chinese imports, companies are being forced to re-evaluate their strategies and consider significant changes to their operations. The outcome of ExxonMobil’s discussions regarding the potential sale of its chemical plants will be closely watched, as it could have significant implications for the future of the European chemicals industry.
