The Baiersbronn virgin-fiber paperboard mill in the Freudenstadt district will cease production in September 2026. The company had already filed for insolvency in June but initially continued operations. High energy and production costs, a lack of orders, and difficult market conditions weighed on the site. Furthermore, a planned takeover fell through because a prospective buyer was unable to secure the necessary financing. Consequently, all 220 employees will lose their jobs.
Paper mill fails due to high production costs and lack of investor solution
During the final days of production, the workforce is fulfilling outstanding orders. The plant is also processing existing raw materials and supplies. According to the municipality, funds are subsequently lacking to continue production and maintain employment. This marks the end of more than 70 years of industrial history at the site.
Representative image: Shutterstock
Baiersbronn Frischfaser Karton primarily produces virgin fiber board for folding cartons. Its customers include companies in the food, pharmaceutical, and cosmetics industries. The company recently reported annual sales of around 80 million euros. However, this volume of business was no longer sufficient to sustain economically viable operations.
Investor Unable to Secure Acquisition Financing
Consequently, the company pinned high hopes on finding a new owner during the insolvency proceedings. Concrete talks regarding the acquisition of the paper mill were underway as late as August 25. However, the interested party had not yet secured financing by that time. Ultimately, on August 27, the party withdrew from the planned transaction.
Insolvency payments from the Federal Employment Agency covered wages and salaries through the end of August. After that, however, the business would have had to cover its full operating costs itself. The insolvency administrator saw no economic basis for doing so. Furthermore, the company had only limited ability to pass its rising costs on to customers through higher sales prices.
High energy and CO₂ costs make continued operation difficult
In addition to high energy prices, costs associated with the European emissions trading system are placing a burden on the site. The paper mill requires significant amounts of energy for production while also being required to surrender emission allowances. According to the company, structural overcapacity in the European cartonboard market is an additional factor; consequently, intense competition is further exacerbating price pressure.
For Baiersbronn, the closure also means the loss of a major industrial employer. The municipality is therefore attempting to retain as many skilled workers as possible within the region. It is also holding discussions with other companies and political representatives regarding new employment opportunities. However, for the 220 employees, their employment will end when operations cease.
Author: Blackout News
Sources: Bild (01.09.26) – Schwarzwälder Bote (27.08.26)