Metsä Group announced that it is investing EUR 25 million in a new production line for Muoto™ food packaging at its bioproducts mill in Äänekoski, Finland.

Developed by Metsä, Muoto is a fibre-based packaging solution produced from Metsä's own wood fibres. 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," said Niklas von Weymarn, CEO of the innovation company Metsä Spring. "Muoto supports Metsä's ambition to develop new packaging innovations in collaboration with companies in the packaging value chain."

Muoto products are made directly from wet wood pulp, without any intermediate steps. 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," Weymarn explained. "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."

The new Muoto fibre packaging production line will be located within the Metsä mill site in Äänekoski, next to the existing Muoto demo plant, and it will start up in 2028. The investment will be made in Äänekoski instead of Rauma, as previously planned, based on the infrastructure of the mill site, the existing production line and the costs of the investment.

The nominal capacity of the production line, which will be supplied by Valmet, will be more than 100 million products per year.

Investment in Kuura Textile Fibre Mill Will Not Proceed
In a press release, Metsä said, "In the target market for Kuura textile fibres — man-made cellulosic fibres — significant global overproduction has emerged in a short period, which has undermined 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.

"Due to the market changes, the investment in the Kuura textile fibre 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 expertise developed in the field of textile fibres is valuable, and the company is exploring options for utilising it," Metsä concluded.

Metsä Group has its roots in the Finnish forest: its parent company Metsäliitto Cooperative is owned by approximately 90,000 forest owners. The Group focuses on pulp, paperboard, tissue and greaseproof papers, wood products, and wood supply and forest services. In 2025, Metsä Group's sales totaled EUR5.8 billion and about 8,800 employees.

Source: Metsä Group