Rumors of closure are no longer circulating quietly. In Saint-Gaudens (Haute-Garonne), as in Tarascon (Bouches-du-Rhône), staff representatives of the Fibre Excellence Group describe a narrow window of opportunity. According to the CGT, FO and CFDT trade unions, the pulp manufacturer could be wound up by March 31, or even as early as mid-February if no commitment is secured.
On the ground, concern outstrips the number of employees. The Saint-Gaudens paper mill, which produces bleached kraft pulp, employs 270 people, with a further 80 at Fibre Excellence SEBSO, part of the Group's wood division. At the UKP paper production site in Tarascon, 250 people are employed by Fibre Excellence Provence. The trade unions also put the number of jobs at around 10,000 "all jobs combined related to the two plants.
Wood and electricity, two power stations under tension
This social situation is linked to four main factors that are currently weighing heavily on our accounts.
In three years, the price of wood has risen by 50%," warned the trade union in December. "This situation is now putting the Fibre Excellence Group's industrial sites in serious difficulty" .
In a press release issued at the end of the year, the Group also pointed out that demand for pulp had fallen by more than 20% over the past six months, while supply remained in excess, particularly for hardwood and softwood pulps, resulting in lower sales volumes and prices.
In addition, the resale price of the electricity produced by Fibre Excellence Saint-Gaudens is far too low compared to the cost of biomass, according to management, "which reduces profitability despite the production of renewable energy". And the euro/dollar parity is unfavorable.
This recent financial fragility is also reflected in the company's business history. The Saint-Gaudens and Tarascon sites have experienced weeks of shutdowns or partial shutdowns in recent months.
CIRI mobilized, new avenues opened up for wood and cash flow
At Bercy, the inter-union confederation reports that it has obtained from the Interministerial Committee for Industrial Restructuring (CIRI) a mobilization of government departments around cash-flow measures. These include immediate support, the validation of deferred social security and tax contributions, and the acceleration of VAT credit reimbursements.
Mediation with creditors is also mentioned, with the assumed limitation of no direct influence on private suppliers.
On the subject of wood, the unions refer to discussions with the Ministry of Agriculture and the ONF to work on supply contracts at levels compatible with industrial logging.
CO2 allowances and electricity contracts, the expected trade-offs
The inter-union group is also highlighting a more technical issue: the environmental regulations on CO2 quotas, which will have a major impact on the environment "paradoxically penalizes decarbonization efforts" . It looks for ways to correct "side effects european regulations.
On the electricity side, the unions are working with the DGEC to modify contractual parameters without the need for legislation. They would also like to work with EDF, "improve the medium-term financial equation" such as an exit from CRE 5, a tariff increase, or even a private contract.
Staff representatives also met the sub-prefect of Arles and the DREETS, as well as local elected representatives, who expressed their support.
The next meeting at Bercy is scheduled for February 11, 2026.
