On 27 April, the Toulouse Commercial Court ruled on the future of the French market pulp producer Fibre Excellence. The company has been placed in administration with a six-month observation period, “during which an economic and social assessment will be carried out and proposals put forward regarding the continuation or sale of the business.” Fibre Excellence’s management must appear in court on 3 June, with the court due to rule on the company’s situation on 17 June.
Here is the content of the press release received today from Fibre Excellence: “The Commercial Court’s decision comes amid a rapid deterioration in the company’s economic conditions, marked by a growing imbalance between the cost of raw materials, particularly wood, and energy prices, in a highly competitive international environment. Since the war in Ukraine, Fibre Excellence has faced an unfavorable evolution in its operating parameters, linked in particular to the consequences of the energy crisis in Europe and a rise in raw material prices. The recent drop in pulp prices, combined with the continued rise in the cost of wood, has created an unstoppable squeeze, exacerbating these imbalances. In this context, the company’s combined pulp production/electricity generation business model has gradually weakened.” Despite the efforts undertaken, and despite the continued support of its shareholder – who has invested nearly €293 million since 2012, including a significant restructuring operation in 2020 – as well as the steps taken with all stakeholders, particularly through amicable procedures, the conditions necessary for a return to profitability have not been met. In this context, the initiation of insolvency proceedings allows for the examination of solutions likely to ensure the continuity of operations and the preservation of jobs. This mechanism currently represents the most appropriate framework for organizing the continuation of business and fostering the emergence of sustainable solutions. Fibre Excellence wishes to emphasize that the current situation results from a combination of external factors affecting the entire sector, both in France and in Europe. In this context, public authorities have been fully mobilized alongside the company to identify suitable solutions. The company, its teams, and its shareholder remain fully committed to supporting the court-appointed administrators in their work and fostering the development of appropriate industrial solutions. Jean-François Guillot, Chairman and CEO of Fibre Excellence, stated: “In a particularly challenging environment for our entire industry, our priority today is to work alongside the court-appointed administrators to identify all solutions that will preserve the business and jobs. This process should allow us to examine, within a structured framework, all possible options for the Group’s future. We will approach this period with responsibility and determination, in a spirit of cooperation with all our stakeholders.” Fibre Excellence expresses its gratitude to all its employees for their commitment, as well as to its forestry, industrial, regional, and institutional partners for their support during this crucial phase. »
V. L.