ExxonMobil to close NJ campus after Clinton Township balks at redevelopment plan

ExxonMobil announced it will close its Hunterdon County research facility to consolidate its corporate research operations at its headquarters in Houston.

The decision by one of the world's largest corporations, with a valuation of $460 billion, will result in most of the jobs on the 757-acre campus at the intersection of Route 22 and Interstate 78 in Clinton Township being offered the opportunity to relocate to Houston.

The corporation is also closing another research facility in Sarnia, Ontario, about 65 miles northeast of Detroit.

The closures will be done in phases and should be completed by 2028, according to a report by Bloomberg.

Local and county officials said they are disappointed with ExxonMobil's decision.

"ExxonMobil's Research and Engineering facility has been a part of the Clinton Township community since it opened over four decades ago, supporting thousands of jobs in that time," Clinton Township Mayor Brian Mullay said in a statement." We are incredibly disappointed to learn that ExxonMobil has chosen to close this facility over the next few years. We will work closely with our partners at Hunterdon County Economic Development & Tourism, the NJ Highlands Council and ExxonMobil to ensure that the developable portion of the property continues to contribute to our area's economic success and that the ecologically critical areas are preserved to protect our environment."

“The Commissioner Board was disappointed to learn of ExxonMobil Corp. plans to close its research and technology hub in Clinton Township, in phases through the year 2028," Hunterdon County Commissioner Director Jeff Kuhl said in a statement. "Hunterdon County and ExxonMobil Corp. have a enjoyed a long-standing relationship and we valued ExxonMobil Corp. not only as a large employer, but also as a partner and supporter of many local community events. We wish that management would reconsider the move but have been advised that this is part of broader consolidation into ExxonMobil Corp. Houston headquarters. Hunterdon County will continue to work with the State of New Jersey to develop new options for the site that benefit residents and the local economy.”

"With this consolidation, New Jersey is effectively losing hundreds of good-paying, high-educated jobs at a facility that was on the cutting edge of clean energy technologies," Ray Cantor, deputy chief of government affairs for the New Jersey Business and Industry Association, said in a press release." In short, it’s a blow to the innovation economy that New Jersey strives to achieve."

Cantor said the closure "should serve as a reminder as to why New Jersey needs to greatly improve its business climate and to be more competitive with other states."

"While there is no known link to this New Jersey closure and corporate taxes, it is also a reminder that having the highest corporate tax rate in the nation, as currently proposed by Gov. Phil Murphy, does not help our competitiveness as corporate consolidation, expansion and relocation decisions are made every day," Cantor continued.

The future of ExxonMobil's campus sparked a controversy in Clinton Township when last fall the corporation proposed changing the zoning of its campus that borders routes 22 and 31 to possibly allow 2.1 million square feet of warehouse development.

Joe Wong, a commercial portfolio manager for ExxonMobil, told the Clinton Township Council on Sept. 27 that the company is not going to expand its operations beyond the 150 acres it now uses on the campus.

"We don't see growth in the future," he said.

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The company's research and development facility, a three-story 850,000-square-foot building, has 500-600 employees and pays the township $3.5 million a year in property taxes, Wong said.

But because the company does not see expanding its operations, about three quarters of the property is considered "surplus," he said, adding that any future plans will include land set aside for conservation as farmland and a wildlife habitat.

"We have no final plans, just options," he said, adding the company wants "to start the process" of "collaborating" with the community "to start the process to see what is possible" on the campus, built in the early 1980s.

That proposal generated a firestorm of opposition from residents and township officials who had concerns that truck traffic from the warehouses would choke routes 22 and 31 and worsen the congestion on the highways.

In 2017, Exxon broke ground on an expansion at the Clinton campus, which it called "a key center of innovation that supports the company’s broad research and development programs."

The expansion included a new engine testing center, a lubricant research and development blend plant, and enhancements to existing facilities to accommodate employees relocating from Paulsboro.

Email: mdeak@mycentraljersey.com

Mike Deak is a reporter for mycentraljersey.com. To get unlimited access to his articles on Somerset and Hunterdon counties, please subscribe or activate your digital account today.

This article originally appeared on MyCentralJersey.com: ExxonMobil research facility in Clinton NJ to close