Following the news published on our App and Website last October 17, in a press release dated today October 20, the French paper mill Condat (Lecta Group) explains why it is seeking protection from the Bordeaux Specialized Commercial Court to assist in its search for buyers for its site and jobs. Read the full press release below.
Condat, a company specializing in the paper industry for nearly 30 years, is an expert in the production of specialty papers for self-adhesive labels. Despite modernizing its production facilities since 2019 and the construction of a solid recovered fuel (SRF) boiler, Condat has had to cope with a changing European market as well as successive crises, including the rise in energy prices and the recent impact of higher customs duties in the United States. Despite the €237 million invested by its shareholder since 2019, these difficulties have increased the company’s financial fragility. In this context, Condat is requesting the opening of receivership proceedings to temporarily freeze its debt and best support its search for buyers.
“We will be fully mobilized over the coming weeks and months to explore all possible takeover solutions, explains the Management. The 26-hectare site has significant assets: the specialty paper production line has been completely modernized after more than €150 million of investment since 2019. The CSR boiler has been operational since February 2025 and enables significant savings in carbon and electricity costs. The teams possess recognized technical expertise. An investment bank specializing in the paper industry has been appointed and has already received expressions of interest. Today, the priority is to put ourselves in the best possible financial and legal position to finalize the takeover offers.”
A site transformation initiated in 2019 to adapt to market changes
The coated paper market – the mill’s historical segment – experienced a nearly 70% drop in demand between 2011 and 2024. To adapt, Condat was forced to close its last coated paper production line at the end of 2023 to refocus on its specialty paper production line (glassine for self-adhesive labels), a more buoyant segment (2% growth per year) and better suited to current European market demand.
At the same time, the SRF boiler project was initiated in 2020 to reduce production costs related to energy use and reduce the mill’s carbon footprint. Fully operational since February 2025, this boiler has nevertheless not been able to offset the significant increase in energy costs in 2022 in time. Recently, the announcement of increased customs duties in the United States in spring 2025 has also forced paper companies to retreat to an already saturated European market.
In this context, a receivership procedure would provide Condat with a secure framework to explore all possible solutions for taking over its site and safeguarding as many jobs as possible.
Concretely, this procedure should allow it to:
- Freeze debts incurred prior to the opening of the procedure (raised to 80% by its shareholder, the group’s largest creditor) in order to preserve its cash flow while the search continues. The company will, of course, continue to pay its employees’ salaries and will resume its regular payment of supplier invoices after the opening of the procedure;
- Expand the search for takeover solutions that protect business and employment, with the help of receivers, under the aegis of the Commercial Court.
- During the proceedings, Condat’s operations will continue as normal, with the same management team now reinforced by the new president, Dominique Bernard, a specialist in complex situations. The priority remains the quality of customer service and the protection of its teams during this search for buyers.
About Condat. A long-standing player in the production of coated and specialty paper in France, Condat has a 26-hectare production site located in Le Lardin-Saint-Lazare in the Dordogne region. Its maximum production capacity is approximately 115,000 tons per year and generates an estimated turnover of €100 million for 2025. Condat has 220 employees. Its offerings currently focus primarily on the production of specialty paper jino(glassine) for self-adhesive labels, which can be used in particular for package labeling.
Photo/Condat
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