Metsä Group will not proceed with the investment in the Kuura textile fibre mill in Kemi, Finland, as conditions for the project have changed significantly due to the global market situation, according to Metsä Group.
In the target market for Kuura textile fibres – man-made cellulosic fibres – significant global overproduction has emerged in a short period, undermining the competitiveness of high-quality and responsibly manufactured fibres, with the greatest change taking place in Asia where significant new capacity has emerged in recent years.
Currently, too few customers are willing to pay a premium for responsibly produced materials, and the Kuura project is not estimated to have the prerequisites to continue in its current form.
Metsä Group stated that the expertise developed in the field of textile fibres remains valuable, and the Company is exploring options for utilising it.