Fibre Excellence Saint-Gaudens resumes production after five weeks of shutdown

After approximately five weeks of downtime, our Fibre Excellence pulp mill in Saint-Gaudens (31), at the foot of the Pyrenees, resumed operations on Monday, November 24.
The plant's return to production on Wednesday, November 26, went according to schedule.

A temporary shutdown to anticipate market conditions

Production was suspended from October 17 to November 24 as a preventive measure in response to the downturn in the European pulp market. This shutdown enabled operations to resume under favorable conditions.

A partial activity plan was put in place for the site's 271 employees in order to minimize the impact of this suspension. Only a minimum number of staff remained active to ensure site security and manage the city's wastewater treatment plant. During this period, pulp sales and deliveries continued as normal.

Unfavorable economic factors

Globally, the pulp market is experiencing a marked slowdown, particularly in Asia, which is reducing demand and putting pressure on prices. The depreciation of the dollar against the euro is also affecting the competitiveness of European exports.

At the European level, demand has fallen by more than 20% in the last six months, while supply remains in excess, particularly for hardwood and softwood pulp, leading to a decline in sales volumes and prices.

In France, the cost of raw materials, particularly industrial wood, has risen sharply (+50% since 2022), directly impacting the competitiveness of domestic industrial sites vis-à-vis their international competitors. The chemicals needed for manufacturing have also seen a sharp increase in price.

Fibre Excellence Saint-Gaudens also produces electricity from biomass. However, the feed-in tariffs contracted with the government are not indexed to the actual change in the cost of biomass, which reduces profitability despite the production of renewable energy.

High-performance, strategic mills

The Saint-Gaudens mill, capable of producing up to 280,000 tons of bleached hardwood and softwood kraft pulp per year, is resuming operations. The Tarascon site in Provence, with an annual capacity of 270,000 tons, has remained fully operational.

Over the past three years, Fibre Excellence has invested more than €55 million in the Saint-Gaudens mill to enhance its performance and competitiveness. As a producer of renewable electricity, whose purchase is contracted with the French government, the group is currently in discussions to adjust tariffs in line with changes in production costs.

Fibre Excellence remains fully committed to maintaining the competitiveness of its Saint-Gaudens site and continuing production under the best possible conditions, by promoting local wood resources and remaining competitive on the international market.