The management of Kelheim Fibres GmbH announced that business operations will be terminated as of 31 March 2026. A continuation of the company beyond this date is not possible.
The investor and sales process conducted within the framework of the self-administration did not lead to a positive outcome. The potential strategic investor who most recently entered the process has withdrawn from a potential investment at short notice.
Independently 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 26 January 2026 in 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,” said the management.
Background on restructuring efforts
Kelheim filed for self-administered insolvency in late 2024 amid soaring energy costs, raw material pressures, and competition from Asian imports. In November 2025, a purchase agreement was signed with Munich-based LEO III Fonds, but it collapsed due to unmet closing conditions, including inadequate order volumes from key customers.
A subsequent strategic investor entered discussions in December 2025 but ultimately withdrew, leaving no feasible path for continuation beyond current run-out production.
