French Paper Mills Face Mounting Pressure as Copacel Urges Industrial Policy Action

France’s paper industry is under increasing strain from global competition, declining prices, and high operating costs, with seven mills closing since the start of 2024, according to Copacel. The industry body is calling for urgent government action to safeguard competitiveness and prevent further site closures.

Since January 1, 2024, seven of France’s 81 paper mills have ceased operations, including sites such as Condat in Dordogne and facilities in Pas-de-Calais and Charente. Additional producers, including packaging paper manufacturers in Doubs and Bas-Rhin, have entered receivership. Meanwhile, Fibre Excellence, which operates two pulp mills, is undergoing conciliation proceedings. Copacel noted that other sites are also showing signs of financial stress, citing low equipment utilization and shrinking margins.

The organization attributes much of the pressure to international market dynamics. Overcapacity in China has led to increased low-cost exports to Europe, while trade barriers in the United States have redirected additional volumes into European markets. These factors have intensified competition and weighed on domestic production.

At the same time, Copacel highlighted structural disadvantages within France, including high production taxes, elevated energy costs, and administrative complexity, which collectively undermine competitiveness compared to other countries.

Despite these challenges, the association emphasized that demand for paper and cardboard remains supported by sustainability trends, including the substitution of plastics and a recycling rate estimated at 87%.

Copacel is urging both national and European authorities to strengthen trade protection mechanisms, reduce production taxes, and improve access to competitively priced electricity. It also called for simplification of regulatory frameworks, particularly those related to extended producer responsibility, packaging, and environmental compliance.

Christian Ribeyrolle, president of Copacel, warned that without coordinated policy measures, the long-term viability of many sites—and France’s industrial sovereignty—could be at risk.