No 'route to profitability' for Mossmorran, says UK minister

The Mossmorran ethylene plant is due to close in February

There is no "route to profitability" for the Mossmorran chemical plant in Fife, Scottish Secretary Douglas Alexander has said.

The Labour minister reiterated that the UK government would not intervene to save the ethylene manufacturing facility, which is due to close in February, impacting more than 400 workers and contractors.

Alexander - speaking after roundtable talks - said that finding a buyer for Mossmorran remained the "optimal" outcome, but that contingencies for the workforce had to be explored.

Ivan McKee, Scotland's public finance minister, called for the closure to be halted and urged UK ministers to consider financial support and efforts to bring down energy prices.

There had been confusion in recent days after the Scottish and UK governments invited each other to different meetings, with Deputy First Minister Kate Forbes to hold talks with Mossmorran owners Exxon Mobil on Tuesday.

Alexander had called on Forbes to attend Monday's meeting with Fife Council, trade unions and local employers, insisting that the workforce "deserved unity rather than political squabbles", while Forbes had urged the UK government to take "urgent action".

Alexander ruled out nationalisation or direct UK government investment in the site because Exxon Mobil could not identify "a route to profitability" for the plant, which he said had been losing £1m a month.

"But nonetheless we stand ready to continue to try and support the workforce," Alexander told BBC Scotland News.

He said that the talks had been "constructive", and that there was a "team spirit Scotland" at the meeting.

The Labour minister also said that defence giant Babcock, which runs the nearby Rosyth shipyard, had signalled a willingness to explore whether it could potentially employ some of the skilled workers from Mossmorran.

Douglas Alexander and Kate Forbes had planned separate summits

Earlier, Forbes had warned that "any reports of conflict" between the UK government and Scottish governments did a "disservice" to the workers.

She insisted that the UK government had the "levers for an industrial intervention" - citing British Steel's plant in Scunthorpe - and the ability to take "urgent action to address the high cost of energy".

High supply costs had been raised by bosses at Exxon Mobil as one of the reasons why the company felt there was no longer a "competitive future for the site".

Speaking after the talks, McKee said: "We are working with the UK government and Fife Council to achieve a positive outcome for workers and will do what we can to ensure the focus remains on them and the wider community affected by the closure at Mossmorran."

He added that Forbes would meet with workers and trade unions on Tuesday "to consider what further steps we can take to mitigate the impact of this decision".

'Devastating blow'

Fife Council leader David Ross said that the closure of the plant would be a "devastating blow" for workers and the local community, and called for the plans to be paused.

He added: "Fife Council will work with all partners to explore future opportunities for the site and for the wider Fife economy and the council stands ready to do everything within its power to support those affected and to secure a positive future for the area."

Bob Macgregor, regional organiser with Unite the union, told BBC Scotland News that political leaders should look at all options to keep the chemical plant open.

He said the confusion between the UK and Scottish governments over the meetings had been "very frustrating", adding: "We want them to focus on securing the long-term future of the plant for workers and for the local community."

Earlier, Alexander had confirmed that the UK government would announce up to £14.5m in investment for Grangemouth in the upcoming Budget, after the site's oil refinery stopped processing crude oil in April.

Scottish Conservative energy spokesperson Douglas Lumsden said: "When it comes to Mossmorran and Grangemouth, the horse has already bolted.

"The task forces, summits and rescue plans are a product of Labour and the SNP's failed policies.

"This stream of oil and gas-related job losses will continue unless both governments support new North Sea drilling and Rachel Reeves ditches the Energy Profits Levy."