Further to the information posted this morning, February 9th, we received the following responses from Fibre Excellence. As a reminder, the group’s two mills are facing a combination of factors that are significantly impacting their competitiveness.
Could you tell us if, should the situation remain unchanged, the Tarascon site could close by February 15th and the Saint-Gaudens site by March 15th?
Management and employee representatives are currently working closely together to help the company overcome this difficult period with the support of the government. We are not currently insolvent, and no receivership proceedings have been initiated. Both of our mills are continuing production; we are selling pulp, and our wood suppliers are being paid. Given the challenging economic climate, guarantees must be provided quickly as part of our discussions. We have a mid-March deadline. Furthermore, it’s worth remembering that Fibre Excellence has a long-standing commitment to France. We believe in the future. Despite the challenging economic situation in 2025, Fibre Excellence has ensured the necessary investments in its industrial facilities and in maintenance over the preceding years.
What is your main demand: the immediate opening of negotiations with the French government and EDF regarding the electricity purchase price?
Indeed, the first structural lever to activate concerns revising the electricity buyback price, indexing it to economic realities and our electricity production costs. Adjusting the electricity buyback contracts is crucial to securing our return to economic balance. Currently, EDF’s buyback terms no longer cover the actual costs of electricity production, due in particular to the rise in French timber prices. French industrial timber prices have increased by 50% (2025 vs. 2021). In 2025, input costs are at a historically high level, while electricity market prices are falling sharply. Revenues from electricity sales do not cover the production costs of renewable electricity and are generating a loss in operating income.
Jean-François Guillot, President and CEO for France (photo), states: “Since 2023, we have seen a certain imbalance between the price of input timber and the price at which we sell electricity to EDF. Our products are at their lowest; there is no real profit on what we sell. For example, we are selling our electricity at a loss. The crisis stems from this.” A change in the power purchase agreements remains the quickest and most effective solution for Fibre Excellence to restoring economic balance and ensure long-term industrial visibility.
What are the next steps regarding discussions with the public authorities?
We are currently working intensively with public authorities (Ministry of Industry, Interministerial Committee for Industrial Restructuring, Occitanie Region, PACA Region) to implement sustainable solutions and guarantee the competitiveness of our industrial facilities in France, in order to pursue our development and investment plan. Jean-François Guillot concluded: “The discussions with the government over the past few days have been constructive. This is a positive sign.”
Valérie Lechiffre
Photo/Fibre Excellence
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