On 27 March, the French market pulp producer Fibre Excellence issued a press release providing an update on the status of negotiations with the government. This amounts to a kind of ultimatum aimed at securing a response from the government, particularly regarding energy issues. Fibre Excellence is seeking a formal position, pointing out that the company’s future will be decided between now and mid-April. Furthermore, according to France Info, on March 27, the unions learned during a new meeting with the CIRI (the Interministerial Committee for Industrial Restructuring) that the shareholder had put the two factories in Saint-Gaudens and Tarascon up for sale.
Here is what the press release from Fibre Excellence states.
“Having engaged in a conciliation process, which has so far proved unsuccessful in averting the administration of its factories, Fibre Excellence has been forced to lodge a formal complaint against the State through a preliminary administrative appeal. This appeal is a mandatory prerequisite for bringing the matter before the administrative court, thereby allowing the State to take a new decision without judicial intervention. This step aims to obtain a written response from the State to its requests, in particular the revision of the tariff under its CRE5 biomass electricity contracts.
The recent announcements of government support have not yet resulted in a formal offer. Furthermore, this plan only partially addresses the issues at stake and does not provide a sustainable solution to the central problem of the electricity feed-in tariff. For Fibre Excellence, the priority now is to secure a formal position, as the future of the company and the French forestry-timber-paper sector hangs in the balance between now and mid-April.
This preliminary appeal is based on a series of breaches of duty that could give rise to state liability. In particular, Fibre Excellence condemns the award of a new contract to a specific operator, which constitutes illegal state aid, implemented without prior notification to or authorisation from the European Commission, as well as the State’s refusal to amend the formula for calculating the adjustment of the supplementary remuneration to incorporate changes in the cost of wood, as required by law.
Taken together, these breaches are the direct cause of financial loss amounting to over €52 million for the group’s two industrial sites as at 31 December 2025. The State is requested, as part of this appeal, to undertake to amend the CRE 5 specifications in order to adjust the formula for calculating the revision of the additional remuneration, thereby putting an end to the loss suffered by Fibre Excellence.
The measures sought are essential to preserve the French paper industry and position it as a key player in the European bioeconomy – particularly as the additional remuneration actually paid by the State to Fibre Excellence to date is significantly lower than the CRE’s initial forecasts, which had been notified to the European Commission.
Pending a permanent amendment to the contract, interim measures are possible and have been proposed by Fibre Excellence to the State, but no response has been received to date. Without a commitment by 14 April, the threat of insolvency looms and Fibre Excellence will be forced to bring the matter before the administrative court, which, ruling in full jurisdiction, will not only be able to order amendments to the contract in question but also award compensation commensurate with the damages suffered. (…) Consequently, urgent political consideration of energy issues is essential to ensure the competitiveness and sustainability of the paper industry. »
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