Kelheim to cease pperations

The management of Kelheim Fibres GmbH has announced that all business activities and operations will be terminated, effective March 31, 2026. The decision comes after several efforts within the framework of the self-administration did not lead to a positive outcome, and a potential strategic investor withdrew at short notice. Independent of this, despite the support of a large proportion of customers and restructuring measures already implemented, it was not possible to achieve sufficient off-take volumes that would have been required for an economically viable continuation of business operations. This also included the absence of orders from a key customer.

Following completion of the ongoing run-out production, the necessary measures to initiate an orderly shutdown process will be implemented. Employees were informed about the decision and the further procedure on January 26, 2026 during the course of an employee and works meeting. The Works Council and the self-administration have agreed on a reconciliation of interests and a social plan. In addition, a transfer company will be established to support employees in the transition to new employment relationships.

"The self-administration has examined all realistic options for continuation. As the required commitments–including the approval of a key customer–were not in place, continuation is unfortunately not economically viable. This is a difficult situation for the employees; the focus is now on an orderly wind-down and the best possible support for the employees," says the management.

In November 2025, Kelheim announced it had reached a deal to be acquired by DUBAG Group, a Munich-based investor as part of self-administered bankruptcy proceedings begun in October 2024. At the time, the company attributed signficantly reduced pricing for viscose fibers due to intensified Asian competition for its financial issues.