- The Gravenchon site has a capacity of 425,000 tonnes of ethylene and 290,000 tonnes of propylene.
- Since 2018, the site has incurred losses over €500 million.
- Closure affects 677 direct employees, with potential impact on 3,000 indirect jobs.
- ExxonMobil plans to complete site remediation by year-end, pending regulatory approval.
Closure Announcement
ExxonMobil plans to permanently close its ethylene steam cracker and related units at the Gravenchon site in Normandy, France, due to ongoing economic challenges in the European energy and petrochemical markets. The shutdown will impact 677 direct employees and have broader effects on subcontracted labor and regional supply chains.
Financial and Operational Context
The Gravenchon facility, operated by ExxonMobil’s French subsidiary, has an annual capacity of 425,000 tonnes of ethylene and 290,000 tonnes of propylene. Since 2018, it has accumulated losses exceeding €500 million. The decision to close is driven by the site's small size compared to modern global units, high operating costs in Europe, and elevated energy prices, making it uncompetitive.
Market Challenges
The closure occurs amid global ethylene market overcapacity and stagnant demand in Europe. Price pressures from Middle Eastern exports and increased Chinese production have made it difficult for older European assets to remain profitable. ExxonMobil's move aligns with industry trends, as Shell and BP also scale back assets in the region.
Labor and Regulatory Considerations
France’s General Confederation of Labour (CGT) has called for strike actions, claiming the closure could affect up to 3,000 additional indirect jobs. ExxonMobil is engaging with local works councils and plans to delay separations until at least 2025, with job transition support promised. The closure is subject to regulatory approval, with site remediation expected by year-end.
Strategic Divestments
ExxonMobil also plans to divest its Fos-sur-Mer refinery and distribution depots in southern France to Rhône Energies, involving approximately 310 employees.
