The appeals of the unions, elected representatives and Fibre Excellence have been heard. The French Ministry of Industry is ready to advance 150 million euros to maintain these two large paper mills located in Saint-Gaudens in Haute-Garonne and Tarascon in Bouches-du-Rhône. According to La Dépêche du Midi the French Ministry of Industry is proposing a two-part scheme, each worth 75 million euros. But on one condition: that the shareholder makes a contribution.
"We are ready to commit substantial financial support to guarantee the long-term future of both Fibre Excellence sites. The French government is assuming its responsibilities. It is now up to the shareholder to make a full commitment. I will continue to follow this issue with vigilance" confirmed Sébastien Martin, Minister Delegate for Industry, in a tweet.
The two Fibre Excellence sites employ 670 people and have an annual capacity of around 550,000 tonnes of pulp, used for paper, sanitary products and some packaging. The units also produce electricity from biomass, which is sold to the state.
The first part of the Ministry of Industry's plan addresses the immediate financial situation. It provides for the integration of carbon quotas, the waiving of interest and the spreading of public and social debts over ten years.
The second component takes the form of a government guarantee covering 50% of an industrial investment plan. The associated public budget is estimated at 75 million euros.
The government is asking the shareholder to contribute funds as well. Otherwise, the Ministry is not ruling out a search for a buyer.
At the beginning of the year, Fibre Excellence's French management warned of the risk of shutting down its sites in mid-March. They pointed to rising wood prices and changes in EDF's electricity buy-back conditions, deemed insufficient to cover actual production costs.
On the other hand, despite union and management demands to Bercy the Ministry says it is unable to modify the conditions for buying back electricity from the sites.
Fibre Excellence considers these proposals to be "a first step in the right direction to preserve and develop the long-term industrial capacities" of the sites and "create more added value in France".
Jean-François Guillot, President and General Manager France, adds: "I'd like to thank all the stakeholders who, through their collective efforts, have made it possible to initiate a path to perpetuate the Fibre Excellence sites and the local industry. Fibre Excellence has a long-standing commitment to France, and we believe in the future. In the coming days, we will be studying these proposals very carefully, with their immediate and medium-to-long-term effects".
