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Metsä Bets €25 Million on Wood-Fiber Packaging That Could Replace Plastic on the Dinner Table

Metsä Group is investing 25 million euros 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, a scale that signals confidence in the shift away from fossil-based materials.

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 wide variety of customer needs, an important property for food service and retail formats that demand both function and form. “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, chief executive officer of the innovation company Metsä Spring. He added that Muoto supports Metsä’s ambition to develop new packaging innovations together with companies across the packaging value chain.

The products are made directly from wet wood pulp, without intermediate steps, which simplifies the process and reduces conversion cost. According to the company, Muoto combines stiffness and functionality with light weight, making it suitable for demanding serving and food packaging such as trays and containers that must perform on a busy line and survive the journey to the consumer.

What the Announcement Covers

There is a strong market tailwind. “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,” von Weymarn said. Crucially, Muoto products also meet the strict requirements of the European Union’s Packaging and Packaging Waste Regulation, legislation expected to boost the product’s chances of success as brand owners scramble for compliant, renewable formats.

The new line will sit within the existing Metsä mill site in Äänekoski, next to the current Muoto demo plant. The investment will be made there rather than in Rauma, as previously planned, because of the site’s infrastructure, the existing production line and the overall cost of the project. The production line will be supplied by technology company Valmet, a Finnish partner familiar with the mill environment.

The announcement also clarified Metsä’s broader innovation portfolio. Development of its lignin product and carbon capture projects continues as planned. However, the conditions for the Kuura textile fibre project have changed significantly amid the global market situation, and the investment in the Kuura textile fiber mill in Kemi, Finland, 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, responsibly manufactured fibres. Too few customers, the company said, are currently willing to pay a premium for responsibly produced materials.

That decision is a reminder that not every bio-based bet pays off, even for a well-resourced forest industry leader. Metsä said the expertise developed in textile fibers remains valuable and that it is exploring ways to use it, but the honesty about market reality is notable. It also sharpens the contrast with Muoto, where regulatory push and clear plastic-replacement demand make the commercial case stronger.

For the packaging industry, Metsä’s move is further evidence that fiber is becoming the default substrate for the next generation of food and serving packaging. When a major forest group commits tens of millions of euros and a Valmet line to 100 million-plus fiber products a year, the plastic-replacement story stops being a pilot and starts becoming infrastructure.

Key Facts at a Glance

ItemDetail
SubjectMetsä
Key Figure25 million
Year2028
Sourcehttps://thepackman.in/metsa-group-invests-eur-25-million-in-muoto-fiber-packaging-production/

Why It Matters for Printers and Converters

  • Who is moving: Metsä is at the center of this development.
  • The number that matters: 25 million frames the scale of the commitment.
  • Why converters should care: it signals continued momentum in the packaging segment of the printing and packaging value chain.

The PPWR effect is worth unpacking. The EU’s Packaging and Packaging Waste Regulation raises the bar for recyclability, recycled content and reuse across the bloc, and fiber-based formats that are already widely recyclable stand to benefit as brand owners re-engineer packaging to comply. Muoto’s ability to meet those requirements out of the gate is therefore not a marginal feature but a market-access condition, particularly for food contact applications where scrutiny is highest.

Metsä is not alone in betting on fiber. Peers such as Stora Enso and UPM have likewise pivoted toward renewable packaging materials, signaling that the forest industry sees its future less in commodity paper and more in higher-value, functional fiber products. What distinguishes Muoto is its direct-from-pulp production, which avoids intermediate steps and helps control cost and quality. At a nominal capacity above 100 million products a year, the line is sized for industrial, not pilot, scale.

The contrast with the shelved Kuura textile project is instructive. Metsä was candid that man-made cellulosic fibers have seen rapid global overcapacity, especially in Asia, undermining the premium case for responsibly made fiber. Pulling the plug on Kemi while funding Äänekoski shows disciplined capital allocation: continue where demand is real and regulation is supportive, pause where the market has oversupplied. For observers, it is a clear read on where forest groups believe the durable growth actually sits.

Source: Based on “Metsä Group invests EUR 25 million in Muoto fiber packaging production” published by THE PACKMAN.

Looking ahead, this development is a signal worth tracking for the broader packaging sector. As capacity, materials, and investment shift, converters and brand owners who follow such moves early will be better placed to adapt.

Frequently Asked Questions

What is packaging?

Packaging packaging refers to the materials and converting processes that protect, contain, and present products across the supply chain. In the context of this story, it sits within the broader packaging segment of the printing and packaging value chain.

What happened with Metsä?

Metsä Group is investing 25 million euros 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, a scale that signals confidence in the shift away from fossil-based materials. According to the report, the move centers on metsä and its implications for the packaging industry.

Why does this matter for the printing and packaging industry?

Developments like this reflect the ongoing evolution of the packaging market. For label printers, converters, and brand owners, understanding where leading companies are investing helps anticipate shifts in technology, materials, and competitive positioning.

For related coverage, browse our printing & packaging news archive and the latest industry analysis on dhpack.net.

Source: https://thepackman.in/metsa-group-invests-eur-25-million-in-muoto-fiber-packaging-production/

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