Metsä Group is investing approximately €25 million in a new production line for its Muoto fibre-based packaging in Äänekoski, Finland. The decision strengthens the company’s focus on renewable packaging solutions while adjusting its broader innovation portfolio by halting the commercial Kuura textile fibre project.
Expansion of Muoto Packaging Capacity at Äänekoski
The new production line will be constructed at the mill site in Äänekoski, Finland, positioned directly alongside the existing Muoto demonstration plant. Industrial technology supplier Valmet will deliver the production line, which is scheduled to start up in 2028 with a planned nominal capacity exceeding 100 million products per year.
Developed by Metsä Spring, the innovation company of Metsä Group, Muoto is an advanced fibre-based packaging solution manufactured directly from wet wood pulp. The proprietary process eliminates intermediate manufacturing steps, producing lightweight items engineered to deliver essential stiffness and structural functionality.
Market Alignment and Regulatory Compliance
Metsä Spring created this technology for demanding applications such as serving and food packaging, where high-performance alternatives to traditional plastic are increasingly required.
Niklas von Weymarn, CEO of Metsä Spring, said: “We’ve developed a competitive product and production concept for Muoto packaging that responds to the growing demand for fossil-free packaging solutions. Muoto supports Metsä’s ambition to develop new packaging innovations in collaboration with companies in the packaging value chain.”
Demand for non-plastic food packaging alternatives is anticipated to receive further momentum from the European Union’s recently introduced Packaging and Packaging Waste Regulation (PPWR). Although initial commercial plans considered Rauma for the installation, Metsä Group selected Äänekoski due to existing industrial infrastructure, lower investment costs, and synergy with the operational demonstration unit.
Halting of Kuura Textile Project Amid Global Pressures
Alongside the expansion in packaging, Metsä Group has decided not to move forward with its commercial Kuura textile fibre mill in Kemi, Finland. The planned project was aimed at producing man-made cellulosic fibres for the textile sector. However, substantial global market overcapacity, particularly rapid production expansion in Asia, created significant price pressure. This market dynamic reduced the commercial viability of higher-quality, responsibly produced fibres, as insufficient numbers of buyers are currently willing to pay a premium for sustainable textile materials.
Retention of Technical Expertise and Future Projects
While the commercial textile plant will not proceed, Metsä Group confirmed that the specialized expertise gained during the Kuura initiative remains valuable, and the company is evaluating methods to utilize the underlying technology. Other key innovation projects under Metsä Spring, including lignin product development and carbon capture technologies, are continuing according to schedule.
