Consortium bid and regional support vie to save France's last pulp mill
Consortium bid and state nationalization compete to save France's last pulp mill by September 8.
Event / Economy
Fibre Excellence Pulp Mill Rescue
France's sole domestic pulp mill in Saint-Gaudens faces liquidation after judicial receivership. A 91-million-euro takeover bid from a Soprema-led consortium is under court review, with regional and state support totaling up to 28 million euros for the rescue effort.
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2026-09-02 to 2026-11-07 · UTC publication dates
Coverage begins 2 Sept, 12:46 UTC
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What happened
Occitanie region commits 13 million euros to Fibre Excellence rescue plan
The Occitanie regional government committed 13 million euros to support the Fibre Excellence takeover bid, comprising 8 million in capital investment and 5 million in operating funds. Additionally, Engie expressed interest in electricity production and turbine operations, customers provided 1 million euros in advance payments on orders, and the European Investment Bank was expected to contribute 30 million euros, with Facto France contributing 25 million euros and Haute-Garonne department providing 5 million euros to purchase the private wastewater treatment facility serving 15,000 residents.
Occitanie region proposes temporary state nationalization of Fibre Excellence
Carole Delga, president of the Occitanie region, requested on September 2, 2026 that the French state temporarily nationalize Fibre Excellence to provide additional time for securing an industrial partner. The proposal included state participation of 15 million euros (5 million in capital, 10 million in operating funds) alongside regional investment of 13 million euros (8 million in capital, 5 million in operating funds). Delga stated that 3-4 additional months were needed to finalize industrial partnerships, time that commercial court procedures could not provide.
Consortium submits takeover bid for Fibre Excellence on August 24
A consortium of companies including Soprema, a global leader in waterproofing materials, submitted a takeover offer for Fibre Excellence pulp mill on August 24, 2026. The bid was worth 91 million euros total, comprising 31 million euros for restarting operations and 60 million euros for site diversification. The consortium included Soprema, an unidentified paper manufacturer (52% stake), and Alliance Forêts Bois cooperative (5%). Soprema deposited a 2 million euro guarantee in late July to prevent liquidation.
Plant closure projected to cost state 55 million euros
Carole Delga estimated that closure of Fibre Excellence would cost the French state 55 million euros: 15 million euros in unemployment costs for mill workers and wood industry workers impacted by the facility's closure, and 40 million euros for site decontamination and dismantling. This cost analysis was used to argue that state investment in rescuing the plant was economically justified compared to managing its closure.
Fibre Excellence is France's sole remaining pulp producer
Fibre Excellence represents France's last domestic producer of pulp. France currently imports approximately 1 billion euros annually in pulp for manufacturing newspapers, packaging, and medical and hygiene products such as diapers. The mill has operated in Saint-Gaudens since 1959 and provides 350 direct jobs and approximately 5,000 indirect jobs in the regional economy.
Fibre Excellence projects operational profitability by end of 2027
The rescue plan projected that Fibre Excellence would achieve operational profitability by the end of 2027 through revenue from pulp sales and electricity generation from three turbines. This timeline formed the basis for the viability assessment supporting the consortium's takeover bid.
Fibre Excellence Tarascon plant placed in liquidation
The Tarascon plant operated by Fibre Excellence group in Bouches-du-Rhône was placed in judicial liquidation on July 29, 2026, contrasting with the receivership status of the Saint-Gaudens facility.
Commercial court deadline set for September 8 to examine Fibre Excellence bid
The Toulouse commercial court set a deadline of September 8, 2026 to examine the takeover bid for Fibre Excellence. The regional government was required to finalize and submit an improved offer by September 3, 2026 evening. Liquidation was threatened if the court did not approve a viable rescue plan by this date.
Portuguese investor visits Fibre Excellence for potential partnership
A Portuguese investor visited the Fibre Excellence plant in Saint-Gaudens on September 1, 2026 as part of discussions to identify an industrial partner for the proposed consortium takeover. Regional officials indicated active contact with foreign investors to complete the consortium structure.
Fibre Excellence pulp mill in Saint-Gaudens placed in judicial receivership
Fibre Excellence, a pulp mill based in Saint-Gaudens in Haute-Garonne, France, was placed in judicial receivership on April 27, 2026 by the Toulouse commercial court. The mill had been idle since April 2026 and employed 270 workers at the Saint-Gaudens site.
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