ExxonMobil Prepares to Permanently Close Singapore Petrochemical Unit

Core Viewpoint - ExxonMobil plans to permanently shut down one of its two steam crackers at its Singapore refining and petrochemical complex due to global overcapacity in the petrochemical industry, which has negatively impacted profitability [1][3]. Company Overview - ExxonMobil operates a 592,000-barrel-per-day refinery in Jurong, Singapore, which is integrated with the Singapore Chemical Plant (SCP) that has an ethylene production capacity of 1.9 million tonnes per year [2]. Industry Context - The petrochemical industry is facing challenges with razor-thin margins and losses, primarily due to overcapacity, particularly from China, which has led to a global glut affecting profitability [3][4]. - South Korea's government has urged its petrochemical sector to restructure and reduce excess capacity, with the ten largest domestic companies agreeing to cut naphtha-cracking capacity by up to 25% [5]. Future Plans - The closure of the steam cracker is expected to be completed by June 2026, and ExxonMobil plans to reduce its workforce by 10-15% by 2027 as part of a global restructuring effort [6].