ExxonMobil is exploring the sale of its chemical plants in the UK and Belgium, as Europe’s chemicals industry struggles with the impact of U.S. tariffs and growing competition from low-cost Chinese imports, the Financial Times reported. The potential deal, which could raise up to $1 billion, remains at an early stage, with Exxon holding discussions with advisers in recent weeks, according to people familiar with the matter.

The U.S. energy giant operates an ethylene plant in Fife, Scotland, along with several production facilities in Belgium, and has reportedly also considered shutting them down. The European sector continues to face pressure from disrupted trade flows, delayed orders, and a lingering fallout from the 2022 energy crisis. Exxon, however, told the FT it does not comment on “rumours or speculation.”

Other global players are also scaling back in Europe. LyondellBasell (LYB.N) has sold some of its olefin and polyolefin assets earlier this year, while Sabic is shrinking its regional footprint. In May, Exxon entered exclusive talks to divest its majority-owned French unit Esso (ESSF.PA). Industry analysts note that any potential deal could take time, with no certainty a sale will go through.

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