Metsä Group invests US$27.4M in 100M unit fibre packaging line as Kuura textile mill plans shelved

FINLAND – Metsä Group has invested €25 million (US$27.4 million) in a new Muoto fibre packaging production line in Äänekoski, Finland, with a nominal capacity of over 100 million products annually, while simultaneously shelving its planned Kuura textile fibre mill in Kemi due to global overcapacity.

The Muoto production line, scheduled to start up in 2028, will be located within Metsä’s Äänekoski mill site next to the existing demo plant and will be supplied by Valmet. 

Muoto products are made directly from wet wood pulp without intermediate steps, offering a lightweight material with stiffness and functionality suitable for demanding serving and food packaging applications. 

The company chose Äänekoski over the originally planned Rauma site due to infrastructure advantages, the existing demo plant and lower investment costs. 

Muoto Packaging Expansion and Market Positioning

Muoto products meet the requirements of the EU’s Packaging and Packaging Waste Regulation, positioning the fibre-based material as a sustainable alternative to plastic in food packaging applications. 

Metsä Spring CEO Niklas von Weymarn stated that the company has developed a competitive product and production concept that responds to growing demand for fossil-free packaging solutions, supporting Metsä’s ambition to develop new packaging innovations in collaboration with companies in the packaging value chain. 

The packaging is suitable for applications such as takeaway trays and berry boxes, replacing plastic in demanding serving and food packaging applications.

Kuura Textile Fibre Mill Plans Shelved

In contrast, the company’s previous plans to invest in a Kuura textile fibre mill in Kemi will not proceed due to significant global overproduction that has emerged in a short period, undermining the competitiveness of high-quality and responsibly manufactured fibres. 

Von Weymarn stated that significant new capacity has emerged in Asia in recent years, and too few customers are willing to pay a premium for responsibly produced materials, adding that the company does not have competitiveness with this concept. 

The expertise developed in textile fibres remains valuable, and Metsä is exploring options for utilising it. 

The Kuura project will not proceed in its current form, with potential next steps not expected before the 2030s.

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