France’s Last Market-Pulp Mill Seeks Three-Month Lifeline
Prosecutors have requested a three-month operating extension for Fibre Excellence’s Saint-Gaudens mill while a takeover offer is finalized. Public authorities, customers and industrial group Soprema are providing financing to preserve the plant and its jobs.
Court decision due on 15 September
France’s last producer of market pulp could receive three additional months to secure a rescue deal. La Tribune reported that the public prosecutor requested the continuation of operations at Fibre Excellence’s Saint-Gaudens mill in Haute-Garonne during a hearing before the Toulouse Commercial Court on Tuesday, 8 September. The company is currently in judicial reorganization, and the court is scheduled to announce its decision on 15 September.
The proposed extension would give Fibre Excellence and regional authorities more time to finalize a takeover offer. Occitanie regional president Carole Delga said on 2 September that the mill needed another three or four months because a foreign investor would require time to understand French rules and prepare an integrated industrial project. The request replaces a rescue process previously measured in weeks with a defined period for negotiations and due diligence.
Public funding keeps the plant operating
The French state has committed up to €2 million to finance the temporary continuation of operations, with the funds available in September. The Occitanie region plans to provide €3.5 million from October until early December. According to La Tribune, this financing is intended to cover current expenses, preserve the industrial equipment and maintain employment while the search for a buyer continues.
Occitanie has allocated a total of €13 million to restart industrial activity alongside several companies. Soprema, a major Alsace-based producer of waterproofing products, supplied a €2 million guarantee at the end of July to prevent the site’s judicial liquidation. Fibre Excellence’s customers have also provided €1 million in advance payments for orders, adding working capital and demonstrating that downstream buyers have an interest in keeping the mill operational.
Industrial links widen the case for a rescue
Soprema’s involvement extends beyond financial support. The group is interested in the wood chips and heat generated by the Saint-Gaudens facility and also manufactures pulp-based products, including cellulose insulation. Those links could support the integrated project sought by regional authorities, combining pulp production with the use of the mill’s energy and wood-derived co-products.
The outcome matters beyond the plant itself because Fibre Excellence is France’s principal market-pulp producer and the Saint-Gaudens facility is the country’s last mill serving that segment. Closure would remove domestic production capacity and leave French buyers more dependent on external suppliers. A rescue would preserve an industrial outlet for wood, maintain supplies for customers and retain the site’s production infrastructure. The immediate question is whether the court-backed extension, public financing and customer advances will provide enough time to bring a foreign investor into the capital and turn the emerging industrial partnerships into a viable takeover proposal.