ExxonMobil is exploring the sale of chemical plants in the UK and Belgium amid tariffs and rising Asian competition.

Texas, United States:  ExxonMobil is reportedly exploring the sale of its European chemical plants in the UK and Belgium, as the region’s industry continues to face mounting pressure from U.S. tariffs and rising competition from China. According to sources cited by a newspaper, the U.S. energy major has held early-stage discussions with advisers in recent weeks regarding potential divestments, which could be valued at up to USD 1 billion.

The European chemicals sector is under renewed strain as “U.S. tariffs disrupt global trade, delay orders, and intensify competition from cheaper Asian imports,” compounding difficulties from the 2022 energy crisis. ExxonMobil currently operates an ethylene facility in Fife, Scotland, along with multiple production sites in Belgium. The company has also considered the possibility of shutting down these plants altogether.

Other global chemical producers, including LyondellBasell and Sabic, are also scaling back operations in Europe. LyondellBasell earlier this year sold select olefin and polyolefin assets, while ExxonMobil in May entered into exclusive negotiations with the French unit of Canadian energy group North Atlantic to divest its majority-owned French subsidiary, Esso.

According to TechSci Research, ExxonMobil’s potential sale of its chemical plants in the UK and Belgium highlights the growing challenges facing the European chemical industry. The move reflects mounting pressure from global trade disruptions caused by U.S. tariffs, as well as intensifying competition from low-cost Asian imports. Such divestments could lead to reduced production capacity in Europe, further impacting supply stability and pricing dynamics within the region. Additionally, a potential exit by a major player like ExxonMobil may signal declining investor confidence in Europe’s chemical sector, prompting other companies to reassess their operations. This trend is already visible, with firms like LyondellBasell and Sabic scaling back their European footprints. While asset sales could open opportunities for new entrants or regional players to acquire facilities at competitive valuations, the overall development underscores the structural challenges European producers face in maintaining competitiveness against global peers.