French government readies €5 million loan to back Fibre Excellence rescue

The French state says it is prepared to back a "credible industrial takeover" of pulp producer Fibre Excellence, awaiting a detailed offer from financier Matthieu Pigasse that is due on Thursday. Minister for Industry Sébastien Martin noted that "the State has always been there for Fibre Excellence" and that more than €100 million of public money has been allocated to the company since 2020. In addition, the government is willing to add a €5 million loan provided overall conditions for a viable industrial rescue are met.

Fibre Excellence, which also generates electricity from wood chips, has seen its power‑generation arm become loss‑making as raw‑material prices have risen sharply. The government had earlier proposed a conditional 20 % increase in the electricity feed‑in tariff, which the firm’s unions deem insufficient. The company operates France’s two remaining large pulp mills – in Saint‑Gaudens (about 270 employees) and Tarascon (about 275 employees) – and was placed in judicial recovery at the end of April after its main shareholder, Jackson Wijaya of the Asia Pulp and Paper family, declined further investment.

Union leaders and regional officials have called on the government to assume responsibility to save the plant and the jobs it supports.