It is reported that Exxon Mobil plans to sell its European chemical plants for $1 billion to cope with competition from Asia and the aftermath of the energy crisis
Exxon Mobil is considering selling its chemical plants in the UK and Belgium for $1 billion to cope with the impact of U.S. tariff policies, low-priced imports from Asia, and the energy crisis of 2022. The company has held preliminary discussions with advisors to explore the possibility of selling or closing the plants. Despite the pressure, Exxon Mobil still retains the option to keep the assets
According to informed sources cited in reports, Exxon Mobil (XOM.US) is considering selling its European chemical plants located in the UK and Belgium. This move is driven by multiple pressures, including the impact of U.S. tariff policies on global trade, intensified competition from low-priced imports in Asia, and the lingering effects of the 2022 energy crisis on the European chemical industry.
Reports indicate that the American energy giant has engaged in preliminary discussions with advisors in recent weeks to explore the possibility of selling these assets, with the transaction amount potentially reaching $1 billion. However, Exxon Mobil's official response stated that it "does not comment on rumors or speculation," and the company has not responded to requests for comments outside of office hours.
The specific assets involved include Exxon Mobil's ethylene plant in Fife, Scotland, and several production bases in Belgium. Informed sources revealed that besides selling, the company has also discussed the option of directly closing these plants. However, it should be emphasized that there is currently no certainty regarding whether a transaction will be reached, and Exxon Mobil retains the option to keep the assets.
The European chemical industry is currently facing new challenges: U.S. tariffs disrupting global supply chains, delayed orders, and intensified market competition from low-priced imported products in Asia, threatening the industry's recovery process. Against this backdrop, other chemical giants such as LyondellBasell and Saudi Basic Industries Corporation are also scaling back their European operations— for instance, LyondellBasell divested some of its olefins and polyolefins assets earlier this year.
It is worth noting that in May of this year, Exxon Mobil also engaged in exclusive negotiations with the French subsidiary of Canadian energy group North Atlantic to divest its majority stake in the French subsidiary Esso, indicating the continuity of its strategic adjustments
