ExxonMobil Considers $10B Sale of UK, Belgium Chemical Plants Amid Trade Pressures

ExxonMobil, the American energy giant, is reportedly considering the sale of its chemical plants in the United Kingdom 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 from Asia, and the lingering effects of the 2022 energy crisis on Europe's chemical industry.

The company has reportedly engaged in preliminary discussions with advisors over the past few weeks to explore the possibility of selling these assets, with the potential transaction value estimated at around $10 billion. However, ExxonMobil has officially declined to comment on the speculation, and the company has not responded to requests for comment made outside of regular business hours.

The specific assets in question include ExxonMobil's ethylene plant in Fife, Scotland, and several production facilities in Belgium. According to sources, in addition to selling these plants, the company has also considered the option of shutting them down entirely. It is important to note that the outcome of these discussions is still uncertain, and ExxonMobil retains the option to keep these assets.

The European chemical industry is currently facing new challenges, including disruptions to global supply chains and order delays caused by U.S. tariffs, as well as increased market competition from low-cost imports from Asia. These factors pose a threat to the industry's recovery. In this context, other major chemical companies have also been scaling back their operations in Europe. For instance, LyondellBasell divested some of its olefins and polyolefins assets earlier this year.

In May of this year, ExxonMobil also engaged in exclusive negotiations with the French subsidiary of the Canadian energy group North Atlantic to divest its majority stake in the French company Esso. This move further underscores the company's strategic adjustments. The sale of these assets is part of a broader strategy to streamline operations and focus on more profitable ventures, particularly in the face of ongoing global economic uncertainties and shifting market dynamics.