The government is providing a 2-million-euro loan to Fibre Excellence Saint-Gaudens, in Haute-Garonne, to finance the continued operation of the pulp mill, which is currently shut down. Granted as part of the Economic and Social Development Fund (FDES), this loan was formalized by a decree published on September 20 in the Official Journal.
Placed under judicial reorganization on April 27, Fibre Excellence Saint-Gaudens was placed in judicial liquidation on July 30, with operations continuing. This period has been extended until December 15. Takeover bids must be submitted no later than noon on October 22. This new deadline is intended to allow time to consolidate the project led by a consortium of public and private investors?including Soprema?centered around a Portuguese manufacturer in the paper industry, according to La Gazette du Midi .
Nearly 90 million euros to be raised
The government loan will finance the first part of this transitional period. The Occitanie region plans to take over with 3.5 million euros to keep the plant operating between October and mid-December.
However, the funding needed goes far beyond that. According to The Tribune , nearly 90 million euros must be raised to ensure the long-term recovery of Saint-Gaudens.
The industrial project would not be limited to reviving current pulp production. It also calls for diversification into products with higher added value. Soprema, an Alsatian manufacturer that employs nearly 13,000 people worldwide and is part of the consortium, is particularly active in the insulation sector and manufactures thermal insulation made from recycled paper.
Sébastien Martin, the Minister of Industry, has asked the project sponsors to provide, by September 30, information on available funds, contributed equity, investments, working capital needs, and the number of jobs that would be retained.
Annual production of 280,000 metric tons of paper pulp
Based in Saint-Gaudens since 1959, the plant produces approximately 280,000 metric tons of paper pulp per year, primarily for use in paper, hygiene products, and packaging. The site currently employs 244 people, according to The Tribune .
These difficulties are nothing new. In March 2026, production was suspended for two weeks due to a shortage of wood. An initial five-week shutdown had already taken place in October 2025 due to a slowdown in the European pulp market. Fibre Excellence also cited rising wood prices and electricity purchase terms as contributing factors.
The situation has deteriorated further since then. At the beginning of the year, the government was considering providing up to 150 million euros to support Fibre Excellence?s two French plants, in Saint-Gaudens and Tarascon, contingent on a financial commitment from shareholder Jackson Wijaya. Tarascon was ultimately placed in court-ordered liquidation at the end of July.
Saint-Gaudens is now the last remaining French production site for commercial paper pulp. The 2 million euros loaned by the government gives it a few more weeks to turn the proposal from the consortium?which includes Soprema and a Portuguese manufacturer?into a financed takeover offer.
