Oil giant ExxonMobil cuts 677 jobs in Seine-Maritime, Esso sells its Fos-sur-Mer refinery and two depots

The American group is reducing its activities in France, particularly on its Gravenchon platform, in Normandy, for reasons of competitiveness.

The oil giant ExxonMobil is reducing its activities in France. It announced Thursday April 11 the shutdown of almost all of its petrochemical units, on its Gravenchon platform, in Port-Jérôme-sur-Seine (Seine-Maritime). This will lead to the elimination of 677 jobs, mainly on this Normandy site, where ExxonMobil and its subsidiaries operate several oil-related activities.

Of the nearly 2,000 employees in total, today, the majority work for the Esso refinery manufacturing fuel and lubricants. This activity is not affected by the job cuts. It is the petrochemical sector which will almost completely stop, and it is a question of competitiveness.

More than 500 million euros in losses

According to the management of ExxonMobil Chemical France, the site is no longer economically viable in the face of foreign competition. The factory operates with a steam cracker, this installation carries out one stage of the manufacturing of plastic, rubber and other resins. This steam cracker, in Port-Jérôme, dates from the 1960s, with a small production capacity. However, new, much larger devices have just been built or will be built around the world, mainly in China and the United States, they can produce 4 to 5 times more and at much lower costs.

ExxonMobil Chemical France points out the high costs, particularly energy, in Europe. The company calculates its losses: more than 500 million euros since 2018. “This can’t continue,” decides the president, then the steam cracker will be shut down this year, before the employees leave next year. 677 people therefore, nearly 650 on the Normandy site, and 30 at the headquarters in Île-de-France.

The 310 Esso employees transferred

In Port-Jérôme, the refinery part is therefore not affected by job cuts. But at the same time, Esso, the subsidiary of ExxonMobil, announced today that it wants to sell its refinery in the south of France. The oil company wants to sell its refinery in Fos-sur-Mer, in Bouches-du-Rhône, and its depots in Toulouse and near Lyon, in Villette-de-Vienne, in Isère. Esso assures that this announcement has no link with those concerning the Normandy site, that this sales project is part of its long-term strategy for the management of its assets, and that the offer is interesting.

Exclusive negotiations are underway with the company Rhône Énergies, a consortium which brings together a refinery operator and an energy market trader. Esso and Rhône Énergies hope to finalize the transaction by the end of the year. If this comes to fruition, the job will be retained, both groups promise. The 310 employees concerned will be transferred to the new entity. The American Esso would then have only one refinery in France, that of Port-Jérôme, but its service stations in the south of France will remain under its red and white logo.