An industrial history in the service of monetary sovereignty

A century of industrial history

In the early 1920s, the Banque de France took a decision that would prove decisive for the future of the French cash industry: to centralise the production of paper for banknotes. Until then, production had been spread across various sites, particularly in the Paris region. However, this area, marked by successive conflicts at the beginning of the 20th century, appeared vulnerable to geopolitical risks. The Banque de France therefore chose to establish a strategic paper manufacturing site in Vic-le-Comte, in the Auvergne, at the heart of an industrial region renowned for its expertise.

The Vic-le-Comte paper mill officially began production in 1923. From then on, it became the pillar of French monetary sovereignty, ensuring a continuous supply of banknote paper. At the same time, the Banque de France set up its printing works in Chamalières, some 20 kilometres away. For almost a century, this industrial duo – the paper mill for manufacturing paper and the printing works for converting it into banknotes – has formed the backbone of the French banknote production chain, and then the European one with the introduction of the euro.

An industrial ambition focused on Europe

While Vic-le-Comte has established itself as a key site at the national level, its role has taken on a new dimension in the 21st century. With the creation in 2015 of EUROPAFI, a subsidiary of the Banque de France dedicated to banknote paper, the stated ambition is clear: to make the Auvergne site a central player in the Eurosystem and one of the most modern producers in Europe.
This transformation is part of a large-scale industrial strategy. It is no longer just a question of meeting national needs, but of positioning France as a European leader in the production of banknotes. EUROPAFI thus aims to perpetuate the expertise accumulated over a century while opening up to international cooperation. The integrated production model, which combines technological expertise and enhanced security, is a major asset in a sector where reliability and trust are essential.
Since 2015, nearly EUR 85 million has been invested to modernise and strengthen the site's competitiveness. These investments have yielded state-of-the-art equipment: a high-performance paper machine, two pulp preparation workshops — one of which allows the integration of alternative fibres to cotton in order to diversify supplies — and an automated cutting and packaging line. Thanks to these innovations, EUROPAFI has increased its production capacity to 5,000 tonnes per year, ensuring that it can respond effectively to the needs of the international market.

Expertise at the service of monetary security

The specific feature of banknote paper is its high level of security. Unlike conventional paper, paper used for banknotes incorporates some of the security features during the manufacturing process. In Vic-le-Comte, half of a banknote's security features (watermarks, security threads, visual or tactile elements) are incorporated directly into the paper. The other half are then added by printers, notably the Chamalières printing works. This process guarantees maximum reliability and effective protection against counterfeiting.
EUROPAFI does not merely produce euro banknotes. While around 20% of its business is devoted to euro paper, nearly 80% is exported to other central banks and monetary institutions around the world. This international outlook demonstrates not only the company's competitiveness, but also the global recognition of its expertise. Every day, the paper mill can produce up to 500,000 sheets, the equivalent of 25 million banknotes, at a rate of nearly 300 days per year.
 

A pillar of sovereignty and trust

Beyond the figures and performance, the role of Vic-le-Comte and EUROPAFI goes beyond simple industrial production. The subsidiary embodies the will of the Banque de France, and more broadly of the Eurosystem, to preserve European monetary sovereignty based on independence, security and technological expertise.
Combining historical heritage, technical excellence and sustainable innovation, the Vic-le-Comte Paper Mill is now a strategic player serving Europe and ensuring citizens' trust in their currency.

A strategic subsidiary at the heart of the Eurosystem

The industrial history of Vic-le-Comte, in the Auvergne, is part of a long tradition of paper manufacturing. Since 1923, this centre has been dedicated to the production of speciality papers, particularly for banknote production. But it was in 2015 that a decisive turning point came with the creation of EUROPAFI, the Banque de France's paper subsidiary. This development is not just an administrative restructuring: it reflects a strong desire to consolidate the euro area's strategic autonomy in the production of banknote paper, an essential resource for the manufacture of banknotes.

A transformation in the service of monetary sovereignty

The creation of EUROPAFI marks a significant step forward in the Banque de France's industrial and monetary policy. By providing its centre with a dedicated subsidiary, it has given itself the means to increase its efficiency, modernise its tools and position itself at the heart of European affairs. The objective is twofold: to guarantee independence from external players and to strengthen the competitiveness of a strategic industry, in a sector where security and quality are not only requirements but genuine imperatives.
 

Strengthened cooperation within the Eurosystem

The ambition of this project quickly found resonance among European partners. In September 2017, three major institutions participated in EUROPAFI's capital: the Banca d’Italia, the Oesterreichische Nationalbank and the Banco de Portugal. This structural alliance transforms the company into a central player in the Eurosystem, going beyond the national framework to become a common reference point. Through this partnership, a genuine dynamic of cooperation is being established, bringing together skills, resources and expertise around a shared mission: to ensure the stability, security and sovereignty of the European currency.
The integration of EUROPAFI into this collective architecture perfectly illustrates the approach of managed interdependence that characterises the Eurosystem. Each central bank retains its national mission, but the pooling of strengths makes it possible to consolidate the whole. EUROPAFI thus becomes a strategic paper manufacturing hub, guaranteeing technical excellence and the continuity of the supply of banknote paper.

Technical excellence and long-term commitment

Beyond the technical aspects, this organisation reflects a political vision: that of European monetary sovereignty embodied by the euro. The common currency is not only an economic instrument, it is also a symbol of unity and trust. By controlling the entire production chain, from design to printing, the Eurosystem affirms its ability to protect this collective asset. EUROPAFI, through its specialisation and expertise, participates directly in this project of integration and stability.
The company, drawing on nearly a century of industrial experience, also pursues a dynamic approach to innovation. The investments made since its creation aim to modernise processes, optimise resource consumption and integrate environmentally friendly practices. At a time when the energy transition and corporate social responsibility are becoming increasingly important, EUROPAFI is committed to combining industrial performance with sustainable development.
As such, the Banque de France's paper subsidiary has positioned itself as a key player in striking a balance between tradition and modernity. It draws on its historical heritage while responding to contemporary challenges, be they technological, environmental or geopolitical. Its mission goes beyond simple production: it embodies Europe's desire to master critical expertise, guarantee the security of transactions and preserve trust in the euro.

A strategic pillar for the future of Europe

Ultimately, the creation of EUROPAFI and its openness to European partners reflect a clear ambition: to make Vic-le-Comte not only a leading industrial site, but also a strategic pillar of the Eurosystem. This choice illustrates the conviction that technical excellence and cooperation are the keys to monetary sovereignty and European resilience.