Exxon Weighs Sale Of European Chemical Units Worth Up To $1B Amid Tariffs, China Pressure: Report

Exxon Mobil (XOM) is reportedly looking to sell its European chemical plants as the sector is grappling with higher U.S. tariffs and intense competition from producers in China.

According to a report by the Financial Times, Exxon has held early-stage discussions with advisers in recent weeks on possible sales, which could fetch up to $1 billion.

The supermajor is specifically weighing the sale of its plants in the UK and Belgium, the report stated. The company owns an ethylene plant in the Scottish town of Fife, alongside multiple production sites in Belgium. The company had also discussed just shutting them down.

However, the report mentioned that there was no guarantee a deal would materialize and Exxon could choose to retain the facilities. If the Houston-based company goes through with the sale, it will join another U.S. firm, LyondellBasell, which has decided to offload four struggling production facilities on the continent.

Retail sentiment on Stocktwits about Exxon was in the 'neutral' territory at the time of writing.

For years, chemical producers have struggled to cope with rising energy and feedstock costs alongside intense competition from Chinese producers. In the first quarter, Europe's chemical capacity utilization stood at 74%, significantly below the EU's long-term average. Chemicals production in the 27-nation block has trailed behind the U.S. for the last three years.

While major EU economies are still struggling to gather momentum, U.S. President Donald Trump's 15% tariffs have further made EU exports uncompetitive across the Atlantic.

Exxon, which has frequently criticized Brussels for its policies, had said in May that it was in exclusive talks to sell its controlling stake in French fuel unit Esso SAF, as well as its wholly owned chemical business in the country to North Atlantic France SAS, a unit of Canadian fuel retailer North Atlantic.

Exxon shares have gained 3.4% this year.

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