The Mossmorran chemical plant in Fife will close in February after UK ministers ruled out intervention, with Scottish Secretary Douglas Alexander saying the site has “no route to profitability.”
The Labour minister confirmed that the ethylene manufacturing facility will close next year, impacting more than 400 workers and contractors.
Speaking after roundtable talks, Alexander said that finding a buyer remained the "optimal" outcome but insisted contingency plans for staff must now be explored.
Mr Alexander ruled out nationalisation or direct UK government investment in the site because Exxon Mobil could not identify "a route to profitability" for the plant, which he said had been losing £1million a month.
Scotland’s public finance minister, Ivan McKee, has urged UK ministers to halt the shutdown and consider financial support, while Deputy First Minister Kate Forbes is due to meet Exxon Mobil for further talks on Tuesday.