Metsä Group is investing Euro 25 million in a new production line for Muoto fibre packaging at its mill site in Äänekoski, Finland, with start-up planned for 2028. Muoto products, designed to replace plastic in demanding food packaging applications, will be produced from Metsä’s own wood fibers on a line with a nominal capacity of more than 100 million products per year.
Elsewhere in Metsä’s innovation portfolio, development of the lignin product and carbon capture projects is continuing as planned, while the company said the conditions for the Kuura textile fibre project have changed significantly amid the global market situation.
New business in Finland
Muoto is a fiber-based packaging solution developed by Metsä and produced from the company’s own wood fibers. The products can be shaped to meet a variety of customer needs.
“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,” said Niklas von Weymarn, chief executive officer of the innovation company Metsä Spring.
Muoto products are made directly from wet wood pulp, without any intermediate steps. According to the company, Muoto combines stiffness and functionality with a light weight, making it suitable for applications such as demanding serving and food packaging.
“There’s a strong market trend to find alternatives to plastic in certain product groups, which opens a significant market niche for the Muoto business. Muoto products also meet the strict requirements of the EU’s recent Packaging and Packaging Waste Regulation. Legislation is expected to give a boost to the product’s chances of success,” von Weymarn said.
The new production line will be located within the Metsä mill site in Äänekoski, next to the existing Muoto demo plant. The investment will be made in Äänekoski instead of Rauma, as previously planned, based on the mill site’s infrastructure, the existing production line and the costs of the investment. The production line will be supplied by the technology company Valmet.
Investment in the Kuura textile fibre mill will not proceed
In the target market for Kuura textile fibres – man-made cellulosic fibers – significant global overproduction has emerged in a short period, undermining the competitiveness of high-quality and responsibly manufactured fibres. The greatest change has taken place in Asia, where significant new capacity has emerged in recent years. Currently, too few customers are willing to pay a premium for responsibly produced materials, according to the company.
Due to the market changes, the investment in the Kuura textile fiber mill in Kemi, Finland, will not proceed. The Kuura project is not estimated to have the prerequisites to continue in its current form. However, the company said the expertise developed in the field of textile fibers is valuable, and it is exploring options for utilizing it.