Fibre Excellence Saint-Gaudens Mill Ordered to Shut Down, Affecting Around 300 Jobs

The Toulouse Commercial Court has ordered the immediate cessation of operations at Fibre Excellence Saint-Gaudens, a bleached kraft pulp mill in Haute-Garonne, France, after no firm takeover offer was submitted by the October 22 deadline. The decision, issued on November 12, will result in the loss of approximately 300 jobs at the plant and the company's headquarters in Labège, near Toulouse.

The mill has been under judicial liquidation since July 30 but had been allowed to continue operating temporarily. In September, the court granted a three-month extension until December 15 to give potential buyers additional time to finalize their proposals. However, no binding offer was received.

Discussions had involved Portuguese group Ghost, the French government and the Occitanie region. Following a hearing on November 3, the court decided against granting another extension and ordered operations to stop immediately. Around 30 employees will remain at the site to maintain and secure the facilities, according to AFP.

Industrial Revival Remains Possible

Despite the shutdown order, a potential industrial recovery remains under consideration. A project led by Portuguese group Ghost and the Occitanie region could enable operations to resume by the end of 2027, AFP reported.

Ghost, which specializes in paper processing and hygiene product manufacturing, had proposed restarting pulp production and developing an on-site processing operation. The project was expected to receive support from the regional authorities and Alsatian manufacturer Soprema.

The approximately 300 employees affected by the shutdown will be offered one-year professional security contracts (CSPs). The scheme provides support and training for workers while potentially allowing some of them to return if industrial operations resume at the site.