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Corporate Update

Kelheim Fibres To Shut Operations By March 2026, Signalling Strain In Global Speciality Fibre Market

• By  Textile Excellence
• January 30, 2026

Kelheim Fibres GmbH has announced the closure of its operations effective 31 March 2026, marking a significant development in the global speciality viscose fibre landscape. The Germany based manufacturer confirmed that continuation of business is no longer economically viable after an unsuccessful investor and sales process conducted under self-administration.

Management stated that a potential strategic investor exited discussions at an advanced stage, while efforts to stabilise the business through restructuring failed to secure sufficient off take volumes. Absence of confirmed orders from a key customer further weakened the viability of ongoing operations, despite support from several long-standing buyers.

Kelheim Fibres is known globally for its speciality viscose fibres used across hygiene, medical, nonwoven and textile applications. Industry data indicates that speciality cellulosic fibres account for less than 10% of global man-made cellulosic fibre capacity, making supply disruptions particularly sensitive for downstream users.

The closure reflects broader pressures facing fibre producers worldwide. Rising energy costs in Europe, volatile pulp prices and slower demand recovery in technical textiles have compressed margins across the sector. Global man-made cellulosic fibre demand grew only around 2.5% in 2025, significantly below pre pandemic averages.

Run out production will continue in the coming weeks, followed by an orderly shutdown. Employees were informed through a formal works meeting. A social plan and transfer company have been agreed to support workforce transition. The development is expected to tighten availability of speciality viscose fibres in international markets, prompting buyers to reassess sourcing strategies and long-term supplier diversification.

The closure reflects broader pressures facing fibre producers worldwide. Rising energy costs in Europe, volatile pulp prices and slower demand recovery in technical textiles have compressed margins across the sector. Global man-made cellulosic fibre demand grew only around 2.5% in 2025, significantly below pre pandemic averages.