Metsä Group will invest approximately €25 million in a new production line for its Muoto™ fibre-based packaging technology at the Äänekoski mill site in Finland, moving the concept from demonstration toward commercial-scale production.

The new line is scheduled to start operations in 2028 and will have nominal capacity exceeding 100 million packaging products annually.

Valmet will supply the production technology.

The investment represents another step in Metsä Group’s effort to develop higher-value applications from wood fibre, particularly for food and food-service packaging where manufacturers are exploring alternatives to fossil-based plastics.

Packaging Made Directly From Wet Wood Pulp

Muoto differs from conventional paperboard converting because the products are formed directly from wet wood pulp.

Using Metsä Group’s own wood fibres, the production process eliminates intermediate material-processing stages before the pulp is shaped into the finished packaging structure.

According to the company, the resulting material combines stiffness, functionality and low weight and can be formed into different three-dimensional designs.

Potential applications include food packaging and more demanding food-service formats.

Metsä Group sees Muoto as a possible substitute for plastic in selected applications rather than a universal replacement.

“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 Metsä Spring, the group’s innovation company.

PPWR Could Support Demand for Fibre Alternatives

Metsä Group is also positioning Muoto against changes in Europe’s packaging regulatory environment.

The company says the products are designed to meet requirements associated with the European Union’s Packaging and Packaging Waste Regulation (PPWR).

As packaging producers and brands adjust material choices and packaging designs to new EU requirements, Metsä Group expects this transition to support demand for fibre-based solutions in suitable applications.

However, commercial success will ultimately depend on more than regulatory pressure.

Food packaging must satisfy requirements involving product protection, manufacturing efficiency, food contact, functionality, cost and end-of-life performance. Scaling Muoto beyond its demonstration phase will therefore provide an important test of how the technology performs under higher-volume commercial conditions.

Äänekoski Chosen Over Rauma

Metsä Group evaluated both Äänekoski and Rauma before selecting the location for the investment.

Äänekoski was chosen because of its existing infrastructure, overall investment costs and the presence of Metsä Group’s current Muoto demonstration facility.

The commercial line will be installed next to that demonstration plant.

Keeping the two operations together could allow experience accumulated during product and process development to be transferred into the larger production system as Metsä moves toward commercialization.

The company also intends to continue working with partners across the packaging value chain to develop applications for the technology.

More Than 100 Million Products Per Year

The nominal annual capacity of more than 100 million units marks an important change in scale for Muoto.

Rather than focusing solely on proving whether wet pulp can be formed into functional packaging, the project moves attention toward whether the technology can be produced consistently and economically at commercial volumes.

The planned 2028 startup also gives Metsä Group time to continue application development before the larger line enters operation.

Specific product formats, customer commitments and expected production volumes by application have not been disclosed.

Metsä Cancels Kuura Textile Fibre Mill

While Metsä Group is moving forward with Muoto, it has decided not to proceed with its planned Kuura textile fibre mill in Kemi, Finland.

The decision reflects very different market conditions in man-made cellulosic fibres.

According to Metsä Group, significant global overcapacity — particularly following capacity additions in Asia — has weakened the commercial case for the proposed plant.

The company said current market conditions provide limited opportunity to secure a sufficient premium for high-quality fibres manufactured under more responsible production conditions.

As a result, the Kuura investment is no longer considered viable in its existing form.

Metsä Group is nevertheless examining how the technical knowledge developed through the project could be used elsewhere.

One Biomaterial Project Advances, Another Stops

The two decisions provide an interesting contrast in Metsä Group’s approach to developing new products from forest resources.

The company is committing capital to Muoto as it sees growing opportunities for renewable fibre-based packaging, while stepping away from Kuura because global textile-fibre capacity has weakened the project’s economics.

Other development areas remain active.

Metsä Group said its work on lignin products and carbon-capture technologies will continue as planned.

For Muoto, the next major milestone will be construction and commissioning of the Äänekoski production line.

If the project remains on schedule, 2028 will mark the transition of Muoto from demonstration-scale development to production exceeding 100 million fibre-based packaging products per year.

Last Updated on 26/08/2026 by Jota Machinery