The restructuring of Fibre Excellence has entered a new phase, with the Saint-Gaudens pulp mill granted additional time to develop a takeover plan while the French state has stepped in to address safety and environmental risks at the liquidated Tarascon site.

The Toulouse Commercial Court on September 15 granted Fibre Excellence Saint-Gaudens a further three months to continue operating, extending the deadline to December 15. Potential buyers now have until October 22 to submit a new takeover proposal, with the court expected to examine the offer at a hearing on November 3.

The decision follows a new proposal submitted in August by the Occitanie Regional Agency for Strategic Investments (ARIS), working with industrial partners including Soprema. The project is intended to preserve the Saint-Gaudens mill while diversifying activities at the site.

The mill, which has annual pulp production capacity of around 280,000 tonnes, is part of a proposed industrial project requiring an estimated €90 million investment package to support the site's long-term recovery and diversification. Soprema is among the industrial investors in the package, while discussions continue with a Portuguese paper group, which has submitted a letter of intent, over its role and the project's governance.

The financing structure also includes support from the Occitanie region and the French state. The state will provide a €2 million loan under the Economic and Social Development Fund (FDES) programme, via Bpifrance Assurance Export, to support operations through September 30, after which Industry Minister Sébastien Martin has asked for “precise commitments” from the takeover project promoters.

The Occitanie region will contribute €3.5 million for the period from October to mid-December, as part of a broader regional support package. The proposed project also includes financing through loans and other investors, as well as the potential involvement of the Haute-Garonne department.

The plan would expand the site's activities beyond pulp production, including the development of activities linked to wood waste and chips, alongside new facilities planned by Soprema. The objective is to establish a broader industrial base at Saint-Gaudens while maintaining pulp production.

The additional period gives the industrial partners time to finalise the business plan and financing structure and prepare a firm takeover offer before the October 22 deadline.

State Steps in at Tarascon

The situation is markedly different at Fibre Excellence Provence in Tarascon, which was placed into judicial liquidation on July 29.

Following the shutdown of the pulp mill, attention has shifted to securing the Seveso-classified industrial site. Significant quantities of wood, chemicals and other materials remain on the premises, while key safety systems had been taken out of operation during the closure process.

On September 18, the French government announced that the Agency for Ecological Transition (ADEME) would intervene urgently at the site after authorities raised concerns over fire and environmental risks.

A joint inspection by the classified-installations inspectorate and ADEME on September 15 found around 17,000 tonnes of wood, as well as hazardous products and waste, still present on the site. The government said the site's fire-protection network needed to be restored rapidly and that measures were also required to prevent potential pollution of the Rhône.

The prefect of Bouches-du-Rhône had previously ordered the restart of the site's fire-protection system and wastewater-treatment facilities. The prefecture subsequently asked the administrative court to impose a €50,000-per-day penalty on the judicial liquidators until the required emergency measures are implemented.

The government has now authorised ADEME to carry out emergency safety work, replacing the liquidators for these specific operations under an “urgence impérieuse” (pressing urgency) procedure. The planned measures include restoring fire-protection infrastructure, establishing temporary wastewater-treatment arrangements and strengthening site security. The government said the costs would ultimately be charged to the liquidators.

The liquidators have disputed the government's criticism, arguing that the situation at the industrial site predates their appointment and challenging the characterization of their actions as negligence. They have also objected to the state's decision to intervene without prior consultation.

Two Different Paths

The contrasting situations at Fibre Excellence's two sites underline the extent to which the group's restructuring has diverged since the Toulouse Commercial Court rejected the group-wide takeover proposal in July.

At Tarascon, the focus is now on the safe management and securing of a liquidated industrial site. At Saint-Gaudens, the additional three-month period keeps the mill operating while industrial partners work toward a new takeover proposal.

The next key milestones for Saint-Gaudens are the October 22 deadline for a new offer and the court hearing scheduled for November 3. The current extension runs until December 15, when the court will again have to determine the future of the mill.

The Saint-Gaudens site employs more than 240 people and remains a significant industrial and economic contributor to the local area.