Hundreds of jobs have been thrown into jeopardy after petrochemical giant Exxon Mobil announced plans for a partial closure of its plant in Fife.
The Fife Ethylene Plant (FEP) in Mossmorran is to close in February, the company confirmed.
A spokesman for the company, the BBC reports, said there was not a "competitive future" at the plant due to the UK's current economic and policy environment combined with market conditions.
They said the policy environment was "accelerating the exit of vital industries, domestic manufacturing, and the high-value jobs they provide".
The news, affecting up to 400 workers including permanent staff and contractors, comes a week ahead of the chancellor's Autumn Budget.
Pressure has been building on Rachel Reeves to ditch the Energy Profits Levy (EPL) and foster a more stable fiscal regime to encourage investment in the North Sea and broader energy sector.
A statement from Exxon Mobil said: "We understand and regret the impact this will have on our loyal and valued workforce, contractors and local communities.
"Our priorities are now to support our people through this challenging period, while ensuring continued safe operations through to end of production."
The firm said it had been looking for a buyer for the site for several months and that it would demolish the facility once production ends.
It plans to have a "full employee consultation" before the closure.
Despite Exxon Mobil attributing the closure to the UK policy environment, Energy Security Minister Michael Shanks said the company had been enduring "significant global challenges".
He called the news "deeply concerning" and said the government stood ready to provide "whatever support that we can".
"The UK government explored every reasonable avenue to support the site, but Exxon has had significant global challenges, and this move comes on the heels of closing another chemical plant in France," a government statement said.
"Our focus now must be on supporting the workforce in the months ahead."