Fibre Excellence: the Occitanie region is asking for a temporary nationalisation of the pulp and paper mill

Fibre Excellence, a French paper pulp manufacturer based in Haute-Garonne, has been placed under judicial restructuring and faces a critical financial shortfall of 90 million euros before September 8. The regional president of Occitanie, Carole Delga, has called upon the state to intervene temporarily, requesting a temporary nationalization of the company to secure time for industrial partnerships to form. This request comes amid growing concerns over the survival of the firm, which employs 270 workers at its Saint-Gaudens facility. The situation escalated following a judicial decision that threatens to trigger liquidation proceedings against Fibre Excellence unless the company improves its recovery plan by Thursday. Currently, the company’s Saint-Gaudens plant has been idle since April, while another site in Tarascon was already put into liquidation on July 29. The financial strain is compounded by the need to find a foreign investor, with a Portuguese industry representative having visited the Saint-Gaudens facility earlier this week. Delga emphasized the urgency of securing additional time, three to four months, to facilitate such a partnership. Delga has proposed a temporary state ownership stake in Fibre Excellence, offering specific financial terms. She outlined a plan where the state would contribute 15 million euros, split between 5 million in equity and 10 million in cash reserves, while the region of Occitanie would provide 13 million euros, comprising 8 million in equity and 5 million in cash. According to Delga, this “public majority temporary ownership” is necessary to allow the project to develop industrial partnerships. She stressed that this measure falls within the authority of the President of the Republic, highlighting the political dimension of her appeal. In a press conference, Delga underscored the necessity of action, stating that the country must fight against inertia. She argued that current legal mechanisms, including those administered by the Commercial Court, fail to grant sufficient time for recovery efforts. Her call for intervention reflects broader concerns over the stability of local industries and the potential loss of jobs if Fibre Excellence fails to recover. The regional government's proposal is not without controversy. While some see it as a necessary step to preserve employment and maintain economic activity in the region, others argue that such measures could set a precedent for state involvement in private enterprises. There have been no official responses from the national government yet, though Delga has made clear that she expects the President to take decisive action. The outcome of this crisis will depend on whether the state agrees to Delga’s proposal and how quickly a viable partner can be found. If the financial support is granted, it could provide the breathing space needed to stabilize Fibre Excellence and prevent further job losses. However, the long-term viability of the company remains uncertain, and the situation highlights ongoing challenges faced by manufacturing sectors in France. As the deadline approaches, all eyes remain on the developments surrounding Fibre Excellence.