Fibre Excellence is now in receivership. The Toulouse Commercial Court has opened a six-month observation period. The group, which operates two pulp production sites in Tarascon (Bouches-du-Rhône) and Saint-Gaudens (Haute-Garonne) and has taken over the Chapelle Darblay site in Seine-Maritime, employs nearly 700 people.
Fibre Excellence had declared itself in suspension of payments on April 15, then requested on April 21 the opening of a receivership with continuation of operations .
This procedure, validated by the court, will make it possible to examine "solutions likely to ensure the continuity of activities and the preservation of jobs" assures the papermaker. " This procedure should enable us to examine, within a structured framework, all possible options for the Group's future" adds Jean-François Guillot, Chairman and CEO of Fibre Excellence.
According to management, this situation is the result of "rapid deterioration in the company's economic conditions, marked by a growing imbalance between the cost of raw materials, particularly wood, and energy prices, in a highly competitive international environment".
She explains: "The recent fall in pulp prices, combined with the continuing rise in wood costs, has generated an unstoppable scissors effect accentuating these imbalances. Against this backdrop, the company's combined pulp/electricity production business model has become progressively more fragile." This model is based in part on the sale of electricity generated from biomass and pulp residues. The group requested an increase in its feed-in tariff. Despite a 20% increase granted by the French government, Fibre Excellence believes that this will not offset rising costs.
Fibre Excellence points out that nearly 293 million euros have been committed by its shareholder since 2012, including a significant turnaround operation in 2020. In a letter to the French Minister for Industry, Sébastien Martin, dated April 16, one of the executives of parent company Domtar indicated that he no longer wished to invest in the group.
