Fibre Excellence’s Saint-Gaudens pulp mill in southwestern France faces judicial liquidation after no formal takeover offer was submitted by the October 22 deadline.

However, a €200 million industrial project proposed by Portuguese group Ghost, with support from the French state and the Occitanie regional government, remains under development. The proposal envisages restarting pulp production and adding downstream manufacturing of tissue and hygiene products.

The Toulouse Commercial Court is due to examine the case on November 2. With no firm takeover offer submitted by the deadline, judicial liquidation is considered the most likely outcome in the short term, although discussions on a potential industrial restart are continuing.

The mill employed 238 people, according to the judicial administrators, and generated €140 million in revenue in 2025. Other reports have cited employment figures ranging from approximately 244 to 270 people.

Ghost proposes integrated pulp and converting operations

Ghost’s proposal combines the restart of the existing pulp mill with the construction of a 50,000 m² converting facility to manufacture finished products on site. The planned product range includes baby diapers, toilet paper and paper towels.

The investment is estimated at approximately €200 million. By combining pulp production with downstream converting, the project aims to retain more value within the local industrial economy rather than supplying pulp alone.

Ghost’s proposal envisages restarting pulp production within 12 months, although the timetable remains conditional on the project's development. The group has indicated that it needs at least six months to advance the plan and complete the work required to make it viable.

Financing, technical studies and regulatory authorizations remain outstanding, and no definitive commissioning date has been announced for the full facility.

The proposed project would build on Ghost’s existing activities in tissue paper production, paper converting and hygiene products.

The Portuguese group is already a customer of Fibre Excellence’s Saint-Gaudens mill. Its industrial portfolio includes Fortissue, which produces tissue paper parent reels; Nunex, which manufactures baby diapers; and ITT, formerly Suavecel, which converts paper into finished products.

These activities provide a potential industrial basis for integrating pulp production and finished-product manufacturing at Saint-Gaudens. However, the precise product range, production capacities and intended markets for the proposed facility have not been disclosed.

No formal takeover offer submitted

The October 22 deadline passed without a firm takeover offer. Three letters of intent were nevertheless submitted to the Toulouse Commercial Court by Ghost, the French state and the Occitanie regional government.

The letters reaffirm the parties’ commitment to continuing work on a potential industrial project but do not constitute a formal offer to acquire the mill.

The project was presented to Industry Minister Sébastien Martin on October 19 by Ghost’s management, at a meeting organized at the initiative of Occitanie regional president Carole Delga. The state and the region subsequently agreed to continue working with the Portuguese group to develop the proposal.

Ghost has indicated that it needs at least six months to develop the project and complete the work required to establish its viability, beyond the timetable of the current takeover proceedings.

The French insulation and waterproofing group Soprema, which had previously expressed interest in the site, also remains involved in discussions, according to the regional government.

Public support and transition arrangements

The regional government has been working for more than a year to find a solution for Saint-Gaudens, contacting more than 130 industrial companies. Public support has helped maintain the possibility of a restart while the search for a buyer continued.

In September, the Toulouse Commercial Court granted an additional three months to pursue a takeover solution, supported by €3.5 million in regional funding and a further €2 million commitment from the state to maintain operations through December.

With no formal offer submitted by the deadline, attention has shifted toward managing the transition and preparing for a possible future industrial project. The regional government and the state have begun working on measures to support employees and preserve the site's equipment and technical expertise, subject to environmental requirements.

A Contrat de sécurisation professionnelle (CSP) can provide eligible employees affected by economic redundancies with income support, training and assistance in finding new employment. Discussions also focus on preserving skills that could be needed if industrial activity eventually resumes.

However, a future restart is not guaranteed, and liquidation could result in the loss of existing jobs before a new operation is established.

Tarascon liquidation adds to France's pulp industry challenges

The Saint-Gaudens situation follows the judicial liquidation of Fibre Excellence’s Tarascon pulp mill in southern France in July 2026. The group's financial difficulties were linked to cash-flow pressures, uncertainty over wood supplies and lower revenue from electricity sold by its mills.

The closure of Tarascon removed one of France's major pulp production sites, making Saint-Gaudens central to efforts to preserve the country's remaining domestic pulp manufacturing capacity.

For the local economy, the stakes extend beyond direct employment. The mill has long been an important industrial employer in the Comminges area, supporting related businesses and specialist skills.

Ghost’s proposed investment offers a potential route to restoring pulp production while expanding into higher-value finished products. Yet the immediate outlook remains uncertain: the court must address the existing company's situation, while the proposed project still requires financing, technical validation and regulatory approvals before it can become operational.

The next key milestone is the Toulouse Commercial Court hearing on November 2. Until a viable project and the necessary financing are secured, Ghost's proposal should be regarded as a potential industrial restart rather than a confirmed acquisition or production plan.