Workers at French pulp manufacturer Fibre Excellence demonstrated on Saturday, February 14th, in Saint-Gaudens, Haute-Garonne, protesting the potential imminent closure of their facility and a sister plant in Tarascon, Bouches-du-Rhône. The company is threatening to halt operations at both sites by mid-March if the French state does not revise the price it pays for electricity generated by the plants.
The ultimatum, announced on January 21st during an extraordinary social and economic committee (CSE) meeting, could result in the loss of 600 jobs, according to union representatives. Sébastien Oustric, a CGT union delegate at the Saint-Gaudens mill, described the announcement as a “blow” and called for mobilization to save the jobs. “We want to save our jobs and present that we are still here,” said Oustric, a thirty-year employee of the mill, which he still refers to as “La Cellulose.”
Paul, an employee who requested anonymity, explained the potential impact of a closure on his life and family. “Being here is a necessity,” he said. “If the plant closes, it’s unimaginable. I won’t be able to uncover another job here. I’ll have to start my life over elsewhere and leave my two children with my ex-partner, who also works at the company.”
Fibre Excellence’s core business of producing bleached and unbleached kraft pulp was nearly in balance in 2025. Still, the company’s financial difficulties stem from the resale of electricity, which incurred a loss of 30 million euros in 2025. In 2024, the group reported a turnover of 357 million euros, with approximately 11% – around 40 million euros – attributed to electricity sales.
The Saint-Gaudens mill, which employs 270 people and the Tarascon site, with 250 employees, are the largest consumers of wood in France. Fibre Excellence also operates Fibre Excellence SEBSO, a wood division responsible for supplying both plants. According to the unions, the total number of jobs directly and indirectly linked to the two plants is around 10,000.
The company has invested over €55 million in the Saint-Gaudens mill over the past three years to improve performance and competitiveness. However, production costs have been significantly impacted by rising input costs, particularly a 50% increase in the price of pulpwood since 2022. Demand for pulp on the European market has fallen by more than 20% in the last six months, exacerbating the financial pressures.
Fibre Excellence is requesting a revision of its electricity purchase agreement with the French government, seeking to index the price to biomass costs, which have increased since 2022. The company argues that this measure is essential to maintaining the competitiveness of the site, which utilizes local wood resources while competing with international producers. Talks with the government and EDF are ongoing, having begun in 2022.
A demonstration in support of Fibre Excellence Saint-Gaudens drew several thousand people on January 31st. Local elected officials have also written to the Prime Minister to highlight the urgency of the situation. The Saint-Gaudens mill was previously shut down for five weeks last November, and now faces potential closure by March 15th, along with the Tarascon site.
Fibre Excellence has a pulp production capacity of over 550,000 tonnes per year, spread across its two sites. The group employs approximately 670 people.
