Fibre Excellence pulp maker files for bankruptcy in France

France’s largest remaining pulp producer, Fibre Excellence, has been placed under bankruptcy proceedings by the Toulouse commercial court after its owner, Domtar, declined further capital injection. The company, which operates plants in Saint‑Gaudens and Tarascon and employs about 670 workers, blames market distortions created by bio‑energy subsidies for its financial losses. The French government has been asked to provide additional support, though officials are urged to reconsider the subsidy regime.

The shutdown threatens the livelihoods of thousands in the regional forestry sector. The Saint‑Gaudens plant supplies roughly 15% of the wood harvested in Occitanie, supporting around 10,000 forestry jobs. Local officials, unions and business leaders warn that closure could lead to a cascade of job losses, a surplus of low‑value wood, and heightened fire risk from accumulated timber. A local support rally and discussions of new investors are ongoing as the court reviews the company’s fate.