On November 12, 2026, the Toulouse Commercial Court ordered the judicial liquidation of Fibre Excellence Saint-Gaudens, resulting in the cessation of operations at the pulp mill.
The ruling ends the current operator's activities after no formal takeover offer was submitted by the October 23 deadline. However, a proposed €200 million industrial redevelopment led by Portuguese group Ghost, with support from the Occitanie Region, the French government and industrial group Soprema, remains under development.
Approximately 300 employees at the Saint-Gaudens mill and the company's headquarters in Labège, near Toulouse, are affected by the closure. The company was already under judicial liquidation, but operations had been allowed to continue temporarily while potential takeover proposals were considered.
Fibre Excellence entered judicial restructuring in April 2026, with approximately 670 employees across its two pulp mills in Saint-Gaudens and Tarascon. The Tarascon site was also placed in liquidation earlier this year. The group's financial difficulties were linked to persistent profitability problems and rising wood and energy costs. Its Indonesian shareholder, Jackson Wijaya, had injected nearly €300 million into the group before deciding not to provide further funding.
Ghost project targets pulp restart and downstream production
Despite the court's decision, the proposed redevelopment of the Saint-Gaudens site remains under discussion. On October 22, Ghost, working with the Occitanie Region and the French government, submitted letters of intent for an industrial project valued at approximately €200 million. Industrial group Soprema has also been associated with the proposed redevelopment.
The plan envisages restarting pulp production at Saint-Gaudens within approximately one year and developing higher-value-added processing activities at the site. An earlier presentation of the project also included a proposed 50,000 m² converting facility for products such as baby diapers, toilet paper and paper towels.
According to the Occitanie regional government, operational working groups involving Ghost and the French state have already been established to advance the project. A further meeting with the Portuguese investor is planned.
However, Ghost did not submit a formal takeover offer before the court deadline. The project therefore remains at the development stage and requires further preparation, including the completion of technical work, financing arrangements and regulatory procedures. No acquisition of Fibre Excellence or definitive commitment to restart the mill has been confirmed.
Employees to receive support during transition
Approximately 300 employees at the mill and headquarters are affected by the liquidation. They will be offered a one-year Contrat de sécurisation professionnelle (CSP), a French employment-support scheme providing income support, training and assistance in finding new employment.
According to the Occitanie Region, remuneration under the scheme could be maintained at close to 100%, depending on individual circumstances.
Around 30 employees will remain responsible for maintaining and securing the industrial installations while discussions over the site's future continue. The regional government has emphasized the importance of preserving the site's industrial assets during this period.
Industrial future remains uncertain
The cessation of Fibre Excellence's operations marks the end of the existing company's activities at Saint-Gaudens, but does not necessarily rule out a new industrial operation at the site.
The proposed Ghost project could restore pulp production and establish additional downstream manufacturing capacity, potentially serving the tissue and hygiene markets. However, its implementation depends on securing the necessary financing, completing technical and regulatory preparations, and establishing a viable new industrial structure.
For now, the Occitanie Region and the French government continue to support the proposal, with pulp production targeted for restart within approximately one year. The site's future will depend on whether the ongoing discussions can be translated into a formal and financially viable project.
