Metsä Group's Muoto™ products can be used instead of plastic in food packaging for applications that are more demanding, for example. The company is investing in a new production line for Muoto food packaging in Äänekoski, Finland.

As for Metsä's other innovation projects, the development of the lignin product and carbon capture is continuing as planned, but the conditions for the Kuura textile fibre project are estimated to have changed significantly due to the global market situation.

New business in 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. Muoto supports Metsä's ambition to develop new packaging innovations in collaboration with companies in the packaging value chain," says Niklas von Weymarn, CEO of the innovation company Metsä Spring.

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. 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 says.

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 value of the investment is approximately EUR 25 million, and the nominal capacity of the production line will be more than 100 million products per year.  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 - that is, 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.