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<\/span>The French government is preparing a \u20ac150 million support plan to help secure the future of two pulp mills operated by Fibre Excellence in Saint-Gaudens and Tarascon, after several weeks of uncertainty surrounding the sites.<\/p>\n The proposal, presented by the Ministry of Industry, is designed to stabilise the company\u2019s finances and support new investments, but it remains conditional on a financial contribution from the group\u2019s shareholder, Indonesian businessman Jackson Wijaya.<\/p>\n Two-part state support scheme<\/strong><\/p>\n According to the Ministry of Industry, the plan is structured in two components worth \u20ac75 million each.<\/p>\n The first part addresses the company\u2019s immediate financial pressures. It includes integrating the Saint-Gaudens site into the carbon quota system, waiving interest on certain liabilities and spreading public and social debts over ten years. These measures are intended to ease pressure on the company\u2019s cash flow.<\/p>\n The second component would involve a government guarantee covering 50% of an industrial investment programme aimed at modernising the Saint-Gaudens and Tarascon facilities. The public contribution linked to this guarantee is estimated at \u20ac75 million.<\/p>\n Industry minister delegate S\u00e9bastien Martin said the government was prepared to provide substantial financial support to ensure the long-term future of the sites, but stressed that the shareholder must also commit funds. If this does not happen, the ministry has not ruled out the possibility of seeking a new buyer.<\/p>\n Strategic pulp production capacity<\/strong><\/p>\n The two Fibre Excellence plants employ about 670 workers and represent a significant part of France\u2019s remaining pulp production capacity. Together they produce around 550,000 tonnes of pulp per year, used for paper, sanitary products and some packaging materials.<\/p>\n Both sites also generate electricity from biomass, which is sold to the French state.<\/p>\n Beyond direct employment, the mills support an estimated 10,000 indirect jobs across the forest, wood and paper supply chain, as well as transport and logistics.<\/p>\n Rising costs behind shutdown risk<\/strong><\/p>\n Earlier this year, Fibre Excellence\u2019s French management warned that the two sites could face closure as early as mid-March if their financial situation was not addressed.<\/p>\n The company pointed to rising wood costs and changes to the conditions under which electricity produced from biomass is purchased by EDF, which it says no longer cover actual production costs.<\/p>\n Despite requests from unions and management, the Ministry of Industry has indicated it cannot modify the current electricity purchase conditions.<\/p>\n Company calls proposal a first step<\/strong><\/p>\n Fibre Excellence said the government\u2019s proposal represents \u201ca first step in the right direction\u201d to preserve and develop the long-term industrial capacity of the sites and to create more added value in France.<\/p>\n Jean-Fran\u00e7ois Guillot, president and general manager of Fibre Excellence France, thanked unions, elected officials and industry stakeholders for their efforts in supporting the mills.<\/p>\n The company said it will examine the government\u2019s proposal in the coming days, assessing both its immediate effects and its longer-term implications for the future of the two facilities.<\/p>","protected":false},"excerpt":{"rendered":" The French government is preparing a \u20ac150 million support plan to help secure the future of two pulp mills operated by Fibre Excellence in Saint-Gaudens and Tarascon, after several weeks of uncertainty surrounding the sites. The proposal, presented by the … Continue reading