On Thursday, November 12, the Toulouse Commercial Court ordered the cessation of operations for Fibre Excellence Saint-Gaudens, in Haute-Garonne. In the absence of a firm takeover offer, the paper mill?which has been in judicial liquidation since July 30 while temporarily continuing operations?will not be granted a further extension. The decision will result in the layoff of approximately 300 employees, including those at the plant and the headquarters in Labège, near Toulouse, according to AFP. About 30 employees will remain to maintain and secure the facilities.
In September, the bleached kraft pulp mill had been granted a three-month extension, through December 15, to allow potential buyers to finalize their proposals. However, no firm offer was submitted by the October 22 deadline, despite discussions with the Portuguese group Ghost, the French government, and the Occitanie region.
The Toulouse Commercial Court therefore reviewed the situation at a hearing on November 3, before rendering its decision on November 12 and ordering the immediate cessation of operations.
An Industrial Revival Is Still Possible
Despite this decision, an industrial revival of the site remains possible. According to AFP, the project led by the Portuguese group Ghost and the Occitanie region could allow operations to resume by the end of 2027.
This manufacturer, which specializes in paper processing and the production of hygiene products, was planning to resume pulp production and develop an on-site processing operation, with support from the Region and the Alsatian manufacturer Soprema.
The approximately 300 employees affected by the shutdown will be offered one-year professional security contracts (CSPs). This program is designed, in particular, to provide them with support and training, while preserving the possibility of rehiring some of the employees in the event of an industrial recovery, the newspaper reports. Est Républicain .
