The essentials
Fibre Excellence shuts down production after mounting losses make operations economically unsustainable.
Fibre Excellence has halted production at its Tarascon facility, which carried a 105 million euro deficit. The shutdown follows the company's placement in judicial reorganization and the subsequent court-ordered liquidation of the plant.
Production ceased due to surging raw material costs and low profitability, making operations economically unviable. The facility had supplied approximately one-quarter of France's paper pulp consumption, making its closure significant for the domestic industry.
The Toulouse commercial court liquidated the Tarascon site, ending restructuring efforts and initiating formal asset disposition. The shutdown marks the end of operations for the Indonesia-backed pulp producer after failing to achieve financial recovery.
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France loses quarter of paper pulp production capacity
The closure removes one-quarter of France's paper pulp supply from the market. The facility's shutdown due to cost pressures and low profitability may strain domestic paper production and potentially increase reliance on imports. The liquidation eliminates what had been a significant regional industrial asset.
105 million euro deficit forces permanent facility shutdown
The Tarascon site's 105 million euro deficit rendered continued operations untenable despite restructuring attempts. Rising raw material costs combined with weak market conditions made profitability impossible to achieve. The liquidation concludes the facility's operational history after financial pressures became insurmountable.