ExxonMobil Weighs Selling European Chemical Plants Amid Competition from China and High Energy Costs.

ExxonMobil is considering the sale of parts of its European chemical business amid growing competition from China and challenges from US tariffs, high energy costs, and regulatory policies. The company has already agreed to sell its French chemical operations and is weighing sales of its plants in the UK and Belgium. ExxonMobil has held early talks with advisers about divestments that could bring in up to $1 billion.

ExxonMobil Corp. is reportedly considering the sale of parts of its European chemical business, including plants in the UK and Belgium, amidst growing competition from China and challenges posed by U.S. tariffs, high energy costs, and regulatory policies. The company has already agreed to sell its French chemical operations and is now exploring options for divesting assets in the UK and Belgium, which could potentially fetch up to $1 billion [1][2][3].

ExxonMobil's European chemical operations span several strategic locations, including Antwerp, Belgium; Fife, Scotland; and Fawley, England. These facilities are crucial for the region's petrochemical and plastics production landscape. The Antwerp site specializes in the production of low-density polyethylene resin, while the Fife facility runs a steam cracker that converts feedstocks into ethylene, a key raw material for plastics. The Fawley complex in southern England is the UK's largest integrated petrochemical site, employing approximately 2,500 workers [1][2][3].

The potential sale comes at a time when Europe's chemical and plastics industries are facing significant challenges. Over the past year, several global companies have scaled back or shut down their plastics-related operations in Europe due to persistently high energy costs and unfavorable market dynamics [4]. ExxonMobil's decision to explore divestments aligns with its broader strategy to streamline operations and focus on core businesses, as part of its cost-cutting and operational efficiency initiatives [3].

While no formal decisions have been made regarding the sale of the European chemical plants, ExxonMobil's stock has declined by 4.6% over the past year, trading at an enterprise value to EBITDA ratio of 7.24X, which is above the broader industry average of 4.35X [3]. The company aims to achieve a total of $18 billion in structural savings by 2030, enabling it to sustain high levels of investment and deliver robust shareholder distributions [3].

References:
[1] https://www.chemanalyst.com/NewsAndDeals/NewsDetails/exxonmobil-explores-potential-sale-of-european-chemical-business-38986
[2] https://www.plasticsnews.com/news/exxonmobil-may-sell-european-chemical-sites-including-plastics-operations-belgium-and-uk
[3] https://www.ainvest.com/news/exxonmobil-considers-sale-uk-belgian-chemical-plants-1-billion-2509/
[4] https://www.plasticstoday.com/industry-trends/exxonmobil-seeks-exit-from-european-chemicals-sector