End of the road for German fibre producer
Specialist viscose manufacturer Kelheim Fibres has announced that it will cease to operate on March 31.
The Bavaria-based company said in late 2025 that it was facing substantial challenges owing to low order volumes. It was working with a Munich-based business turnaround specialist to explore solutions, but it said in a statement on January 28 that these efforts had been unsuccessful.
It said a potential strategic investor had come forward recently but had now withdrawn from the process at short notice. It said a large proportion of its customers had been supportive but that orders were still too low for Kelheim Fibres to continue producing. It added that there was “an absence of orders from a key customer”.
As a result, the management team said it was not economically viable for the business to continue and that its focus would now be on executing an orderly wind-down and on providing “the best possible support for employees”.
