Kelheim Fibres prepares to phase out production

26/11/2025
German viscose manufacturer Kelheim has announced that it has been unable to finalise the projected acquisition of the company. It has been in self-administered insolvency proceedings since October of last year and is being advised by Dubag Group, a Munich-based private equity firm that specialises in companies in complex situations. Earlier this month, Kelheim and Dubag had announced that a purchaser had been found. Negotiations fell through due in part to a lack of commitment from Kelheim customers for future orders. 

“Despite broad support from the majority of customers and the restructuring measures already successfully implemented, the currently binding order volume is not sufficient to economically justify a regular continuation of operations beyond 31 December 2025. Against this backdrop, Kelheim Fibres must now prepare for an orderly phase-out of production,” the company stated. 

Kelheim produces speciality viscose fibres from certified wood pulp for two main markets, nonwovens and technical applications.